Another yield facility is here! Following the success of the Hot Tub vaults, which have reached full capacity pretty much instantly each time after the caps were lifted, a new feature is now live: the Shower Room.
Crypto holders can now earn yield on their assets in the Shower Room while they are queueing up to join the Hot Tub.
The Hot Tub is often at maximum capacity. People can’t get enough of the automated arbitrage alpha! Because deposit caps are in place, there are only a limited number of spots available at any time.
Have you checked out our new OP and WBTC vaults yet? Earn a sustainable yield with your OP, WBTC or USDC tokens here!
We’ll continue to expand the Hot Tub and make improvements. But to offer an enhanced user experience and better manage the high demand for Hot Tub, we are removing the whitelist process and launching Shower Room - the queueing mechanism that replaces the whitelist.
Each Hot Tub vault will have an associated Shower Room, enabling depositors to earn interest while waiting for more spaces in the arbitrage vaults to open up. With this new process, depositors will have priority and be the first to join as soon as there are any withdrawals from the Hot Tub.
The Shower Rooms are uncapped and anyone can join at any time to queue up for the Hot Tub, while simultaneously earning yield!
When you visit vaults.perp.com and see a vault is near or at capacity, even though you can’t deposit straight into the Hot Tub, you’ll be able to queue your funds into the Shower Room.
You’ll also see your place in the queue and the estimated APR that can be earned. While you’re waiting to join the Hot Tub, your funds are utilized in Yearn’s Optimism vaults to generate yield.
A first-come first-serve system is in place to know whose turn it is to join the Hot Tub next. Our bot service will push users of the current priority into the Hot Tub automatically, at every hour in the beginning.
When space is freed up in the Hot Tub, the Shower Room automatically withdraws and converts your assets from Yearn’s vaults to deploy them into the Hot Tub vault of your choice. An outline of the new process is displayed by the flowchart below.
An example of the flow for an individual who joins the Shower Room for the ETH-USDC vault.
There are two scenarios based on whether the Hot Tub has hit capacity:
If there’s space available, you can deposit as much as you want to the Hot Tub.
However, if the Hot Tub is at capacity, everyone joins the queue to deposit a capped amount (maxDepositPerUser in the smart contract) when space becomes available. The maxDepositPerUser for each vault is as follows: 10,000 USDC, 6 ETH and 8,000 OP. Note that the amount deposited into the Shower Rooms is not capped. That said, you can deposit as much as you want to the Shower Room, but when it’s your turn, only the maxDepositPerUser amount will be transferred into the Hot Tub vault.
To illustrate how the Shower Rooms work, let’s assume you’re first in the queue and have deposited a total of 10 ETH.
When some space becomes available in the Hot Tub’s ETH vault (that is, the amount in the vault falls from the cap of 240 ETH to 234 ETH), then 6 ETH from your deposit to the Shower Room is automatically added to the arbitrage vault. The 4 ETH that’s left over continues to earn yield, but you’ll then be moved to the back of the queue to give others a chance to deposit.
You’ll also be moved to the back of the queue if you add more funds to the Shower Room. Also, there are no partial withdrawals: you can continue to wait to join the Hot Tub or withdraw the full amount. Your place in the queue will be shown on the UI.
Those with smaller cryptocurrency holdings benefit the most from the Shower Rooms. These users automatically join the Hot Tub when there’s enough capacity for their smaller deposit, effectively allowing them to skip the line and start earning arbitrage profits before whales.
Yes, the Shower Room is open for everyone, including those that want to deposit more of their funds.
Good news is, you no longer need to wait to get onto the whitelist. You can deposit straight into the Hot Tub vault or Shower Room.
The maximum deposit that will be transferred to the Hot Tub is initially set to 10,000 USDC, 6 ETH or 8,000 OP.
All Hot Tub depositors will need to go through the Shower Room. While you can earn yield by depositing into Yearn’s vaults yourself, you will not be placed in the queue for the Hot Tub vaults. Since Yearn’s vaults are uncapped, it’s expected that the yield will be lower than it is for the Hot Tub vaults.
Your funds will earn interest generated by Yearn’s vaults, so the main risk is exposure to their smart contracts. If there’s a bug or an exploit in the relevant Yearn contracts, then your funds may be at risk.
Have any feedback or more questions? Come and talk to us on Discord.