Excited to share that Hybrid Vaults are now live on Yield Basis!
This is the first component to be deployed on the scaling roadmap. Yield Basis pools have consistently hit their capacity limits within minutes of every cap raise. Hybrid Vaults is the first step to answer to that demand, built to let the protocol scale without compromising on the stability of crvUSD.
The concept is simple:
1. LPs deposit crvUSD alongside their crypto asset (starting with WETH), and the vault creates personal deposit capacity beyond the existing pool caps.
2. The crvUSD is staked into scrvUSD, earning stablecoin yield.
3. The crypto is deposited into the YB pool like it would if you were to deposit directly into the pool.
Every new deposit directly supports the crvUSD peg by increasing the demand for crvUSD. This is what allows YB to safely grow beyond the base caps.
The first market is WETH with $25M in additional deposit capacity. We'll be expanding to more markets and adjusting caps through DAO governance as we evaluate how the Hybrid Vaults perform in prod.
https://x.com/yieldbasis/status/2041439264068546609
