Understanding Curve Boost Multipliers
Using the crvCOMP pool, as an example, liquidity providers earn approximately 12.82% APY in trading fees, and an additional 24.72% APY (as of the date of this publication) in the form of CRV rewards, if they stake their liquidity provider tokens in the Curve gauge. Depositors can boost the CRV rewards earned by locking CRV into the voting escrow module, with a max boost of 2.5x. This size of the boost is dependent on the amount of CRV locked in the voter escrow, and the size of the deposit in the liquidity pool, however, this calculator is useful in modeling potential boost multipliers. The max boost for the crvCOMP pool yields an additional 61.81% APY in the form of CRV rewards, which is displayed below.
Yearn stakes the Curve liquidity provider token into the gauge to earn CRV rewards. 10% of these rewards are locked in our yveCRV-DAO vault (described above) to boost the rewards of all yVaults with Curve strategies. For more information on Curve boost multipliers please see Curve’s documentation for this topic — here.