How to pick the best Yearn Vault

Apart from choosing the highest APY % on http://yearn.finance, which changes every few minutes, where else to look to pick the best yearn vault for your crypto?

3 things to look for when trying to maximise yield on yearn:

1. Historical yield (APY)
2. Total deposits (TVL)
3. Total deposits (TVL) history
   

1. Historical APY

The yield (or APY) changes with every block. So it's useful to see how has it been trending — going up or down over time?

This helps with estimating how will it continue to work.

Tip: look for correlation between historical yield and TVL.

Example: crvBBTC vault. Looking at the historical APY (screenshot below), it's clear it has been trending down over time.

What used to be 19.54% on June 15th is only 3.61% today.

2. Total deposits

Check how much $$ is inside the vault. This is called TVL, or total value locked.

If it's a low number then not many people trust it with their tokens. Be extra careful if you want to deposit.

Example: crvRENBTC vault. There is only 5.25 BTC ($205k) inside while most other yearn BTC vaults contain much more. I.e. the WBTC vault (3k BTC, or $116M) or crvPBTC (1k BTC or $39M).

Speaking of WBTC, the APY is only at 0.33% today and has been trending at less than 1% for most of the month.

Wondering why do people still have their BTC inside the WBTC vault. 🤔

3. Total deposits history

Have people been recently depositing, or withdrawing?

Example: crvSBTC. This vault has seen an influx of fresh Bitcoin over the past week. The APY (green) went down slightly since 3 days ago, but still good. Interesting candidate to watch.

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Verdict: Best Yearn BTC Vaults as of Jul 26th, 2021

Given all the above, here are the most interesting Bitcoin vaults on http://yearn.finance today:

• crvOBTC
• crvPBTC
• (active only recently, but worth keeping an eye on) crvSBTC

To compare all Bitcoin yearn vaults next to each other, go to http://app.joinwido.com and select Bitcoin filter on the top right.

Tip: you can do the same for or stablecoin vaults like USD or EUR.

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This post was originally published on Twitter.