Yearn-Curated Term Labs USDS Vault Delivers 6% Average Yield

Katana has increased incentive rewards for three of its vaults: - **USDC vault** - topped up with additional KAT tokens - **USDT vault** - topped up with additional KAT tokens - **WETH vault** - topped up with additional KAT tokens These vaults allow users to deposit one asset and earn rewards in another. All KAT rewards continue to accrue directly to user wallets and can be claimed at any time. The enhanced incentives aim to attract more liquidity to these core trading pairs on the Katana platform.

Yearn Finance has confirmed its platform remains secure following a Vercel infrastructure incident. Despite no evidence of impact, the team proactively completed comprehensive security measures: - Rotated all authentication tokens - Conducted full deployment audits with no malicious code detected - Reviewed activity logs showing no suspicious access The protocol is safe to use while monitoring continues as Vercel's investigation progresses. CoW Swap also completed similar remediation steps and confirmed their platform's security.

Yearn Finance has confirmed that its vaults and curated markets have no exposure to the rsETH security incident that occurred on April 18. **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 will be provided as needed **Background Context:** The rsETH incident prompted Aave to freeze rsETH across V3 and V4 protocols as a precautionary measure. WETH reserves were also frozen across multiple networks including Ethereum, Arbitrum, Base, Mantle, and Linea. According to Aave's analysis, rsETH on Ethereum mainnet remains fully backed, though the protocol is still validating information and exploring potential resolutions. Yearn's proactive unwinding of affected positions demonstrates the protocol's risk management approach in response to emerging security concerns in the DeFi ecosystem.

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.