Yearn's v3 Vaults: The Next Big Upgrade

Term Labs built fixed-rate lending vaults on Yearn V3's infrastructure, managing over $18M in automated yield. The integration demonstrates Yearn's modular vault framework in action. **How it works:** - Term focused solely on fixed-rate lending logic, plugging into Yearn's TokenizedStrategy - The framework handles all ERC-4626 mechanics: deposits, withdrawals, share accounting, and fees - Vaults automate auction participation, reinvest proceeds from maturing loans, and rebalance idle funds - Risk curators propose portfolio constraints enforced on-chain Yearn V3 supports diverse products on the same infrastructure - from Curve's donation-based scrvUSD ($36M) to Term's automated lending vaults. Protocols inherit from BaseStrategy and delegate vault operations automatically. The pattern is spreading across DeFi as protocols choose Yearn's infrastructure over building from scratch. [Learn more about building on Yearn](http://partners.yearn.fi)

**Term Labs** operates sealed-bid double auctions for fixed-rate lending, where lenders and borrowers submit hashed bids and the protocol determines a single clearing rate. **The Challenge:** - Manual participation in auctions - Time-consuming position rolling - Inefficient idle capital management between cycles **The Solution:** Term's vaults built on [Yearn's framework](https://yearn.finance) automate the entire process: - Automatic auction participation - Reinvestment of proceeds from maturing loans - Rebalancing of idle funds into floating-rate lending protocols Risk curators propose portfolio constraints that smart contracts enforce on-chain, creating a more efficient and hands-off lending experience.

**Epoch 0 Deadline Approaching** Yearn Finance's stYFI migration reaches a critical milestone as Epoch 0 concludes at 00:00 UTC Thursday - approximately 6 hours from now. **Action Required:** - Migrate veYFI positions to stYFI - Stake liquid locker tokens - Stake YFI directly **What's at Stake:** Users who complete migration before the deadline will be eligible for rewards in the upcoming 2-week epoch. Legacy veYFI holders can activate boost benefits that decay linearly from 2.0 to 1.0 as locks expire. sdYFI, upYFI, and coveYFI token holders have the option to stake for earnings or trade tokens for YFI. [Migration Portal](https://veyfi.yearn.fi)

In a space often criticized for its lack of accountability, two DeFi projects are being recognized for their genuine commitment to helping others. **Key Highlights:** - The teams behind [Dinero](https://twitter.com/dinero_xyz) and [Plume Network](https://twitter.com/plumenetwork) stepped up to assist fellow DeFi projects - They followed through on their promises to provide support - This action demonstrates that integrity still matters in decentralized finance The recognition comes as a reminder that collaboration and mutual support remain valuable in the DeFi ecosystem, even as the industry continues to mature and face various challenges.

**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.