how-to-participate-in-a-yvault.md

How To Participate in a yVault

This visual guide will walk you through every step in depositing funds in a yVault.

Prerequisites

• You must have the yVault's underlying token. For DAI yVault, you must have DAI.
• You must use a supported wallet, either Metamask, Trustwallet, Trezor, or Torus.

Walkthrough

1. Go to Vaults page and click on “Connect your wallet”

2. Choose your favorite wallet

3. Enter your password and click “Unlock”

4. Choose which Vault you want to deposit into, for example, the DAI Vault

5. Enter the amount of DAI that you want to deposit

6. Approve and Deposit

Depositing for the first time requires making two transactions, one approval, and one deposit. Approval is one-time, subsequent deposits can be made in a single transaction. Please ensure there is ETH in your wallet to cover the gas cost on Ethereum.

• Approval (first time only)
  • Enter from 0 to 100% of your wallet DAI balance then click "Deposit"
  • Confirm the transaction in your wallet
• Deposit
  • Enter from 0 to 100% of your wallet DAI balance then click "Deposit"
  • Confirm the transaction in your wallet

Please note: Depending on the vault you deposit into, fees may be applied. For more info see the relevant section in the FAQ.

7. Receive your yToken (in this case it would be yDAI)

The yDAI you receive is your share of the DAI Vault. The amount of yDAI in your wallet will remain constant over time but the value of it will increase as the DAI Vault earns returns.

The amount of yDAI you receive will be less than 1 per DAI you deposited because yDAI is worth more than 1 DAI.

For example, at block number 10611372 yDAI was equal to 1.044 DAI. Therefore had you deposited 100 DAI, you would have received 95.78 yDAI (100 / 1.044).

8. Track your earnings

Yearn Party shows an approximate running total for how much you have earned in the Vault.