Yearn V3 Launches Zero-Strategy Stablecoin Vaults

Yearn Finance has published an **optimistic recovery plan** for yETH following a previous exploit that affected legacy iEarn contracts. **Key Details:** - A snapshot file has been created documenting affected positions - The recovery plan is being discussed in the governance forum (YIP-90) - This follows the April 2023 exploit of deprecated iEarn USDT contracts that impacted ~$11M **Background Context:** - The original exploit affected legacy iEarn tokens and related Curve pools - No Yearn v2 vault code was compromised - the issue was with underlying token contracts - yETH was designed as a liquid staking derivative governed by st-yETH holders The community is now working through governance channels to address the impact and chart a path forward for affected users.

Morpho v2 vaults are now live, offering additional MORPHO token rewards on all Yearn-curated vaults. **Key Features:** - Enhanced earning opportunities through MORPHO rewards - Yearn's curated vault selection now available on v2 - Accessible on Ethereum mainnet Yearn continues its track record of yield optimization, having previously optimized vaults like the OG DAI vault on Morpho before recent market trends. [Explore Morpho v2 vaults](https://app.morpho.org/ethereum/earn?v2=true&curators=yearn)

**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.

**Yearn Finance suffered a $9 million exploit** on November 30 at 21:11 UTC targeting the yETH stableswap pool. **Damage breakdown:** - $8M lost from the impacted stableswap pool - $0.9M from the yETH-WETH pool on Curve - **Total: $9 million** The attack involved minting large amounts of yETH through a vulnerability in custom stableswap code. **Yearn V2/V3 vaults remain unaffected** and secure. **Response efforts:** - War room activated with SEAL911 and ChainSecurity - Full postmortem investigation underway - Complexity similar to recent Balancer hack Yearn emphasized that **no other products use similar code** to the exploited contract. The team is conducting thorough analysis and will implement lessons learned. Affected users can seek assistance through Yearn's [Discord support](https://discord.gg/yearn/). The protocol maintains detailed [security documentation](https://docs.yearn.fi/developers/security/#third-party-audits) covering audit history and vulnerability disclosure processes.