Best Yield revamp: Junior BY vaults wind down


A proposal to decommission the Junior Best Yield vaults on DAI, USDC, USDT and WETH.



In January 2023, we expanded the risk-adjusted approach introduced with the Yield Tranches to the Best Yield vaults

the OG Best Yield, launched in 2019 :heart:, became the Senior Best Yield and a new Junior Best Yield was released targeting more risk-seeking LPs.

The Junior BY vaults currently integrate the following yield sources

Vault Yield source
BY DAI Junior Clearpool Portofino DAI Junior, Morpho-Aave DAI Junior
BY USDC Junior Clearpool Portofino USDC Junior, Clearpool Fasanara USDC Junior,
Morpho-Aave USDC Junior
BY USDT Junior Clearpool Fasanara USDT Junior, Morpho-Aave UDST
BY WETH Junior Morpho-Aave WETH Junior

Since the January 2023 inception, the vaults have shown the following metrics on Ethereum

Vault Average TVL Average APY
BY DAI Senior $6,775,965 4.73%
BY USDC Senior $3,423,316 4.68%
BY USDT Senior $3,357,874 5.56%
BY WETH Senior $2,751,119 1.41%
BY DAI Junior $180,228 13.40%
BY USDC Junior $312,225 11.57%
BY USDT Junior $199,013 14.35%
BY WETH Junior $11,103 2.79%

Despite offering double-digit returns, besides the WETH market, the Junior vaults have performed worse than the Senior ones. On the liquidity side, for example, they accounted for less than 5% of the total value locked into the Best Yield vaults. This could be partially explained by the fact that risk-seeking users seem to prefer picking precisely their yield sources and depositing instead in the Junior Yield Tranches.

Fee-wise, the Junior BY vaults generated ~$12,000 in fees in the face of ~$8,000 spent in rebalancing costs. If we add to the equation, the costs of the security monitoring tools and maintenance, all the vaults would show a negative profit margin.

Vault Fees generated Rebalance costs
BY DAI Junior $3,471 $2,413
BY USDC Junior $4,924 $4,311
BY USDT Junior $2,955 $1,769
BY WETH Junior - $64
Total $11,350 $8,287


Given the low liquidity and the low fees generated by the Junior BY vaults, we suggest decommissioning the DAI, USDC, USDT and WETH markets.

This action will decrease the monitoring and updating effort of the Development League and also reduce the cost incurred by the DAO to pay for the rebalances.

These four vaults will be moved to the Decommissioned assets section of our dashboard and deposits will no longer be available. We will communicate the wind-down both in our dashboard and in our communication channels.

After a couple of weeks, and when possibly empty, the vaults will be delisted from the main UI under Best Yield. Users will still be able to redeem their funds from either the beta version of our dashboard or by interacting with the contracts on Etherscan.

Next steps

The Best Yield strategy is the cornerstone of Idle and this proposal doesn’t want to put an end to its development. Based on data and community feedback we think that having Senior and Junior profiles on BY is unnecessary. We would then suggest keeping only the Senior (OG) strategies.

We are anyway already working on new integrations and a revamped BY type and we will soon update the DAO about it.

This post will be open for discussion, and in about 72 hours, if there are no objections, we will proceed with the Temperature Check.


Temperature check voting

The voting phase to approve the Junior BY vaults wind down starts now :ballot_box:

  • For - Agree with the Junior BY vaults wind down on the DAI, USDC, USDT and WETH markets
  • Against - Disagree with the Junior BY vaults wind down on the DAI, USDC, USDT and WETH markets
  • Discuss more - Discuss more the Junior BY vaults wind down

:arrow_right: Poll for $IDLE holders: HERE
:arrow_right: Poll for $IDLE stakers (stkIDLE holders): HERE

:alarm_clock: Polls will close on 2024-02-01T17:00:00Z

The final $IDLE voting weights will be calculated using the approved calculator .

Looking to delegate your vote on Snapshot? Follow the official Snapshot guide.

Let your vote count! :writing_hand:

1 Like

Temperature check results

Temperature Check passed :white_check_mark:

The wind-down process of Junior BY vaults has started. The strategies are currently in withdrawal-only mode, and liquidity providers are invited to withdraw their deposits at the earliest opportunity