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FAQ: Do Vaults tank the price of the tokens they harvest?

Open tracheopteryx opened this issue 4 years ago • 2 comments

@darkghost7 https://hackmd.io/qOml0uPvQ1Wc6BXO3fEnQg

Vault Sales Data Do Vaults tank the price of the tokens they harvest?

  • The vault system is designed to automate the best yield farming strategies in DeFi. Anyone can design a modular strategy for a vault and if governance likes it, we’ll roll it out as a product and share fees with the designer.

  • Some strategies, like the yCRV Vault, are based on selling farmed tokens right away to increase yield. Others, like the yLINK Vault, are designed for capital preservation—they aquire and hold more of the delegated token as they acrue value.

  • So, are the strategies that farm and sell responsible for token price crashes? The only way to know is to look at the data:

tracheopteryx avatar Oct 19 '20 12:10 tracheopteryx

Sorry, you mentioned the wrong person @tracheopteryx . Probably why I never saw this.

DarkGhost7 avatar Nov 03 '20 07:11 DarkGhost7

ah! my bad @DarkGhost7 ! updated the above

tracheopteryx avatar Nov 03 '20 11:11 tracheopteryx