$366202: Weekly value of rewards lost in the WETH/yveCRV-DAO poo #7
Description
This is not directly related to this vault but has to do with the WETH/yveCRV-DAO pool on SushiSwap currently providing liquidity for the token.
Since having yveCRV in your wallet every Thursday sometime between 00:00 and 23:59 UTC gives you claimable rewards in 3CRV these rewards are currently lost if providing liquidity in the pool.
Data sources to calculate the expected weekly earnings from yveCRV:
- https://crv.ape.tax/
- https://github.com/banteg/ape-tax/blob/c6bbce2e53939522411af43bdfd590722b4c2b60/vecrv-front/src/veCurveVault.vue
- https://www.curve.fi/
- https://api.coingecko.com/api/v3/simple/price?ids=vecrv-dao-yvault&vs_currencies=usd
- https://app.sushiswap.fi/pair/0x10b47177e92ef9d5c6059055d92ddf6290848991
total supply: 5,830,174.08 yveCRV (6.552% of total) [source: link 1 & 2]
yearn vecrv: 7,359,841.85 veCRV (8.271% of total) [source: link 1 & 2]
total vecrv: 88,986,838.91 veCRV [source: link 1 & 2]
Weekly volume (including deposits/withdrawals): $13,243,337,041.73 [source: link 3]
Current price of yveCRV: $2.47 [source: link 4]
Total liquidity in WETH/yveCRV-DAO pool: $19,494,400 [source: link 5]
==== Calculation ====
== 3CRV rewards per veCRV
(([Weekly volume] * [admin fee]) / [total vecrv])
((13243337041.73 * 0.0002) / 88986838.91)
== yveCRV rewards compared to veCRV
([yearn vecrv] / [total supply])
(7359841.85 / 5830174.08)
== 3CRV rewards per yveCRV
[3CRV rewards per veCRV] * [yveCRV rewards compared to veCRV]
((13243337041.730.0002) / 88986838.91) * (7359841.85 / 5830174.08) = 0.03757
== Sushi Swap WETH/yveCRV-DAO pool
(19494400 / 2) / 2.47 = 9747200 total yveCRV locked in pool
== Pool 3CRV rewards
9747200 * 0.03757 = 366202.3
==== Conclusion
$366202 in 3CRV is lost in the contract every Thursday (at current volume).
So.. Why not trade these for SUSHI and give them out to pool owners, thus driving up the price of SUSHI and giving even more rewards instead of losing then in a contract?