We currently have about 110 million dollars in the Curve YPool, According to Curve’s FAQ, “if one of the coin in a pool were to significantly lose its peg, the liquidity providers would hold almost all of their liquidity in that currency.”. Given the 1-3% yields it is currently offering, the risks seem to outweigh the rewards.
I agree this is concerning and not worth it at 1-3%. I thought we were getting a significantly higher rate than that though? (are you considering CRV farming as well?)