Yearn Finance Recovers $2.​39M in Coordinated yETH Asset Recovery Operation

Yearn has launched curated vaults on Morpho that operate differently from their V3 vaults. **Key Differences:** - **Morpho Curated Vaults**: Yearn acts as a curator, selecting specific lending markets on Morpho to allocate vault funds for yield generation - **Yearn V3 Vaults**: These vaults deploy funds across multiple strategies and protocols, diversifying yield sources beyond a single platform The main distinction lies in the allocation approach - Morpho vaults focus on curated lending markets within one protocol, while V3 vaults spread risk and opportunity across the DeFi ecosystem.

**Understanding Multi-Chain Strategy Architecture** When tracking DeFi fund flows, the strategy address on the origin chain isn't always the final destination. Here's how to trace cross-chain deposits: **Key Steps:** - Locate the strategy's `REMOTE_COUNTERPART` value on the origin chain - Visit that counterpart address on the destination chain (in this case, Katana) - Find the actual fund holdings and vault deposits **Example: yUSDC Compounder** This yUSDC compounder strategy bridges funds to Katana chain. The actual holdings are deposits into the Yearn vbUSDC vault on Katana, viewable at the remote counterpart address. [View on Katanascan](https://katanascan.com/address/0xEfEEBaAcdC5640A123Fe282652503ea4Fd499d14) *Understanding these cross-chain mechanics helps users verify where their funds actually reside in multi-chain DeFi protocols.*

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.