Yearn

**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.

**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.

**Yearn has confirmed that its Curated Morpho vaults remain secure** following an investigation into the yETH LST stableswap pool incident. Key safety confirmations: - **yETH/st-yETH tokens were not used as collateral** on any markets - All Curated Morpho vaults are operating normally - No user funds in these vaults were at risk This follows earlier reports of an incident involving the yETH LST stableswap pool, which prompted the investigation. **Yearn's V2 and V3 vaults were already confirmed as unaffected** by the initial incident. The confirmation provides clarity for users of Yearn's Morpho integration, ensuring that collateral exposure was limited and vault operations continue without disruption.

**Yearn's new USDS vault through Term Labs is gaining traction**, offering depositors an average **6% yield** through a dual-strategy approach. The vault operates by: - Earning **7.5% APY** on ~69% of deposits through fixed-rate lending - Generating **4.8% APY** on remaining funds via Yearn's USDS vault - Providing additional **Cap Money points** on collateral Term Labs uses **sealed-bid auctions** every ~4 days to match lenders with borrowers seeking loans against blue-chip collateral. Currently serving a **$445K USDS loan** for 45 days at 7.5% annualized rate, backed by fixed-duration cUSD collateral. **Idle funds aren't wasted** - they're automatically allocated to Yearn's USDS vault until the next auction, maximizing yield efficiency. Yearn's DAI-2 vault also participates by converting DAI to USDS at 1:1 ratio before depositing into the Term strategy.

**Yearn Finance** is hosting a Twitter Space discussion focused on bringing **transparency, security, and better risk practices** back to DeFi markets. The conversation centers around the question: *How do we make DeFi Cypherpunk again?* **Featured Partners:** - @LiquityProtocol - @asymmetryfin The discussion aims to address current challenges in decentralized finance and explore solutions for returning to DeFi's original principles of transparency and security. [Set a reminder for the Twitter Space](http://x.com/i/spaces/1vAGR)

**Yearn Curation has grown to $160M TVL** since launching in July, positioning itself as a security-focused curator in the DeFi lending space. **Key Performance Metrics:** - WETH Vault: $46M TVL, 3.8% yield (3rd largest WETH vault) - USDC Vault: $29M TVL, 4.74% yield with OEV boosting - Curates 2 of 3 highest TVL vaults on Katana **Risk Management Framework:** - Multi-dimensional risk scoring across 8 categories - Continuous monitoring of all vault strategies - In-house risk capabilities built for Morpho Labs integration **"Know Your Curator" Philosophy:** Yearn emphasizes transparency in curation practices, contrasting with recent concerns about opaque lending practices in DeFi. Their approach prioritizes fund safety over maximum yields. The platform leverages existing vault curation expertise to manage Morpho vaults, ensuring strategy alignment with user risk preferences while maintaining immutable code with configurable parameters.