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

**KAT Token Unlock Timeline** The KAT token is expected to unlock by the end of March 2026. Currently, tokens remain locked while incentive APRs are calculated based on an assumed fully diluted valuation (FDV) of 1 billion. **Key Details:** - KAT tokens are not yet available for trading - Incentive APR calculations assume 1B FDV - Unlock date: late March 2026 This update provides clarity on the token release schedule for users participating in KAT-related yield programs.

**New DeFi Opportunity Available** Spectra Finance has introduced a fixed yield position for the Katana USDC vault offering: - **8% annual yield** - **4% borrow cost** for looping strategies - **Limited liquidity** in the pool The position enables yield optimization through leveraged looping, though participants should act quickly due to constrained pool depth. **Key Links:** - [PT Token](https://app.spectra.finance/fixed-rate/katana:0xbe32ec8fa5cb8723a4cc4ca0f58dce35e6635f2c) - [Morpho Market](https://app.morpho.org/katana/market/0x09c2ecea0580698a91be0cff2bad3648b00744453c14a9bfb6be5ca7b9950908/pt-yvvbusdcvbusdc-20260802-vbusdt#overview) - [Liquidity Pool](https://app.spectra.finance/pools/katana:0xbe32ec8fa5cb8723a4cc4ca0f58dce35e6635f2c) The 4% net spread between yield and borrow cost presents an opportunity for smaller participants to enter before larger capital deploys.

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.

**Yearn Finance successfully recovered 857.49 pxETH worth $2.39 million** through a coordinated effort with Plume and Dinero teams. **Key Details:** - Recovery operation targeted yETH-related assets - Transaction confirmed on Ethereum blockchain - **Recovery efforts continue actively** - All recovered assets will be returned to affected depositors **Important Security Note:** Users should remain vigilant against impersonators claiming to represent Yearn Finance. The recovery represents significant progress in addressing the exploit damage, with ongoing efforts to retrieve additional funds for affected users.