Morpho Markets Enable Leveraged Yield Exposure for siUSD Through yvUSD Vault

Following a security incident at Vercel, Yearn Finance has confirmed that its platform remains secure and unaffected. **Proactive Security Measures Taken:** - Rotated all authentication tokens - Conducted full deployment audits with no malicious code detected - Reviewed activity logs showing no suspicious access The team emphasized that **no indication of impact** was found, but they completed all recommended remediation steps as a precautionary measure. Yearn continues to monitor the situation as Vercel's investigation progresses. Similar protocols like CoW Swap have also confirmed their safety following the same security review process.

Yearn Finance has confirmed that its vaults and curated markets have no exposure to today's rsETH security incident. **Key Actions Taken:** - All Yearn vaults with previous exposure to Aave WETH markets have been fully unwound - Team continues active monitoring of the situation - Further updates to be provided as developments unfold The protocol acted swiftly to protect user funds following the rsETH hack, which has also prompted Aave to freeze rsETH and WETH reserves across multiple networks including Ethereum, Arbitrum, Base, Mantle, and Linea.

Yearn Finance is promoting access to DeFi-native strategies through multiple vault options: - **Yearn OG USDC vault** on Morpho - **yvUSD vault** - **yvUSDC-2 vault** These vaults offer curated strategies for USDC holders looking to optimize their DeFi yields. The Yearn-curated OEV-boosted USDC vault on Morpho previously received an A rating, demonstrating Yearn's commitment to quality curation and monitoring services for their Morpho vault offerings.

Yearn Finance has begun distributing revenues to YFI token holders who stake their tokens. Users can stake through three methods: - **Direct veYFI staking** - Lock YFI tokens to receive veYFI and earn rewards - **Liquid locker protocols** - Stake through platforms like 1up, Cove, or StakeDAO - **Boosted vault deposits** - Earn enhanced yields on vault deposits **How rewards work:** Every two weeks, veYFI holders vote to direct dYFI rewards to specific vaults. Your reward rate depends on your veYFI balance: - Base rate: 10% of possible rewards (1x boost) with no veYFI - Maximum: 100% of rewards (10x boost) with sufficient veYFI Liquid lockers allow YFI holders to rent out their voting power to vault depositors. Depositors pay a small fee but receive significantly higher yields through borrowed boost power. Rewards are paid in dYFI, which can be converted to YFI or sold on the market. Vault rewards auto-compound, while dYFI rewards require manual claiming through the liquid locker interface. A [boost calculator](https://docs.yearn.fi/contributing/governance/veyfi-calculator) helps users determine optimal veYFI amounts for their deposits.

**Yearn's OEV-boosted USDC vault on Morpho has received an A rating**, joining highly-rated vaults from Stakehouse and Gauntlet. The vault utilizes **Oracle Extractable Value (OEV) technology** to recapture value that would otherwise be lost to MEV bots, redirecting it back to depositors as enhanced yield. **Key highlights:** - A-grade rating validates vault's risk management and performance - Part of Yearn's expanding curation services on Morpho - OEV-boosting technology provides sustainable yield enhancement - Previously surpassed $10M in deposits milestone Yearn continues to demonstrate its **best-in-class vault curation and monitoring capabilities** across the Morpho ecosystem, offering institutional-grade DeFi products with enhanced risk assessment.