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Yearn — yvUSD

2.6
yvUSD (USD yVault) / Ethereum (with cross-chain strategies on Arbitrum) / March 13, 2026
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Score Breakdown

CategoryWeightScore
Audits & Historical20%3.00
Centralization & Control30%2.70
Funds Management30%2.25
Liquidity Risk15%3.00
Operational Risk5%1.50
Final Score2.6 / 5.0
20%30%30%15%
Medium Risk

Overview

yvUSD is a USDC-denominated cross-chain Yearn V3 vault (ERC-4626) that deploys deposited USDC into multiple yield strategies across Ethereum mainnet and Arbitrum. The vault uses Circle's CCTP (Cross-Chain Transfer Protocol) to bridge assets to strategies on remote chains, requiring only strategy contracts on those chains rather than full Yearn V3 infrastructure.

Key architecture:

  • Vault: Standard Yearn V3 vault (v3.0.4) accepting USDC deposits, issuing yvUSD shares
  • Cross-chain strategies: Use a two-contract pattern — an origin CCTPStrategy on Ethereum and a remote CCTPRemoteStrategy (ERC-4626 variant) on the destination chain. The origin strategy restricts deposits to a single DEPOSITER address (the yvUSD vault itself). When report() is called on the destination chain, _harvestAndReport() reports new assets back to the origin by queuing a CCTP message — no separate keeper relay required. The origin receives updates via handleReceiveFinalizedMessage and tracks remote capital via a remoteAssets variable. Additional remote vault implementations using different native bridges are currently in development
  • LockedyvUSD: Companion cooldown wrapper where users lock yvUSD shares for additional yield. Users locking shares gives the vault better guarantees on duration risk, enabling higher-yield strategies without sacrificing atomic liquidity for non-lockers. Cooldown: 14 days (configurable), withdraw window: 5 days (configurable). Lockers receive a percentage of extra yield as an illiquidity premium. Also serves as the vault's accountant
  • Strategies: 12 active strategies deploying into Morpho, 3Jane USD3, InfiniFi, Maple syrupUSDC, Sky/MakerDAO, Spark, Fluid, Pendle/Spectra PT tokens, and Cap stcUSD
  • Yield sources: Lending yield (Morpho, Fluid, Spark, Sky), looper strategies (borrow-against-collateral loops on Morpho), and fixed-rate PT tokens (Pendle/Spectra)

Key metrics (March 13, 2026):

  • TVL: ~$3,015,281 USDC
  • Total Supply: ~3,001,435 yvUSD
  • Price Per Share: 1.004613 USDC/yvUSD (~0.46% appreciation in ~53 days)
  • Total Debt: 100% deployed (0 idle)
  • Deposit Limit: $5,000,000
  • Profit Max Unlock Time: 7 days

Links:

Risk Summary

Key Strengths

  • Battle-tested Yearn V3 infrastructure: V3 framework audited by Statemind, ChainSecurity, and yAcademy. No V3 exploits in ~22 months of production. Immutable vault contracts eliminate proxy upgrade risk
  • USDC-denominated: Stablecoin backing eliminates price volatility risk on the underlying asset
  • Diversified strategy portfolio: 12 strategies across 8+ protocols, distributed across lending, looper, PT, and cross-chain categories. No single strategy exceeds 33% allocation
  • Granular V3 role system: 14 distinct roles with clear separation of responsibilities, all held exclusively by the 3-of-8 multisig. No EOA role concentration
  • Circle CCTP: Trust-minimized cross-chain bridge with same trust assumption as holding USDC. Audited by ChainSecurity
  • Rigorous strategy review process: 12-metric risk scoring framework with ySec security review. CCTPStrategy underwent strict internal review. All strategies evaluated across testing coverage, complexity, risk exposure, centralization, and protocol integration dimensions
  • Active monitoring infrastructure: Hourly large-flow alerts, weekly endorsed-vault checks, and timelock monitoring across 6 chains via GitHub Actions + Telegram alerts

Key Risks

  • Extremely new: Only ~53 days in production with ~$3M TVL. No stress testing. Deposit limit of $5M indicates early stage
  • Separate governance from Yearn global multisig: Vault is managed by a dedicated 3-of-8 Safe with known Yearn team signers, independent from the standard 6-of-9 Yearn multisig. By design for strategy-focused operations, but no cross-oversight
  • No external product-specific audit: The CCTPStrategy cross-chain code and LockedyvUSD wrapper have no dedicated external audit. CCTPStrategy underwent strict internal ySec review. All strategies follow the rigorous 12-metric risk framework, but external third-party review of these specific components is absent
  • 65.6% in medium-risk protocols: The majority of vault funds are deployed into 3Jane USD3 (score 3.5/5) and InfiniFi (score 2.8/5) — both relatively new protocols with elevated risk profiles

Critical Risks

  • No timelock: All governance actions via the 3-of-8 Safe take effect immediately. No monitoring window for users to react to potentially harmful changes. The team has confirmed no plans to add a timelock at this time
  • Looper liquidation cascade: Looper strategies (~58% of TVL) use leveraged positions on Morpho. A collateral depeg (e.g., USD3 or siUSD) could trigger cascading liquidations across multiple strategies simultaneously
  • Cross-chain accounting lag: Remote strategy positions are updated when _harvestAndReport() queues CCTP messages back to the origin. Between report cycles, the vault's reported totalAssets() may not reflect real-time changes on Arbitrum
Full Report

Contract Addresses

Core yvUSD Contracts (Ethereum)

Contract Address Type
yvUSD Vault 0x696d02Db93291651ED510704c9b286841d506987 Yearn V3 Vault (v3.0.4), Vyper minimal proxy
LockedyvUSD (Accountant) 0xAaaFEa48472f77563961Cdb53291DEDfB46F9040 Cooldown wrapper + vault accountant
APR Oracle 0x1981AD9F44F2EA9aDd2dC4AD7D075c102C70aF92 On-chain APR estimation
Fee Splitter 0xd744B7D6bE69b334766802245Db2895e861cb470 Revenue distribution

Governance Contracts

Contract Address Configuration
Role Manager (Vault Safe) 0x16388463d60FFE0661Cf7F1f31a7D658aC790ff7 3-of-8 Gnosis Safe v1.3.0
Deployer/Operator EOA 0x1b5f15DCb82d25f91c65b53CEe151E8b9fBdD271 Fee Splitter governance only (vault roles removed via Safe tx nonce 3130)
Yearn Global Multisig 0xFEB4acf3df3cDEA7399794D0869ef76A6EfAff52 6-of-9 Gnosis Safe — has NO roles on yvUSD

Yearn V3 Infrastructure

Contract Address
Vault Factory 0x770D0d1Fb036483Ed4AbB6d53c1C88fb277D812F
Vault Implementation (v3.0.4) 0xd8063123BBA3B480569244AE66BFE72B6c84b00d
Tokenized Strategy 0xD377919FA87120584B21279a491F82D5265A139c
Yearn V3 Keeper 0x52605BbF54845f520a3E94792d019f62407db2f8

Active Strategies (12)

# Strategy Name Current Debt (USDC) Allocation Protocols Used Last Report
1 0x4c0e...34b USD3 Pendle PT Maxi 350,758 33.0% 3Jane USD3, Pendle 2026-03-09
2 0xb73a...66d PT siUSD March 25 Morpho Looper 196,128 18.5% InfiniFi siUSD, Morpho, Pendle/Spectra 2026-03-09
3 0x5f9D...f89 Infinifi sIUSD Morpho Looper 150,168 14.1% InfiniFi siUSD, Morpho 2026-03-09
4 0x0e29...626 Morpho Yearn OG USDC Compounder 108,980 10.3% Morpho 2026-03-09
5 0xf28d...442 syrupUSDC/USDC Morpho Looper 100,000 9.4% Maple syrupUSDC, Morpho 2026-03-10
6 0x7bf1...d1d PT stcUSD Jul 23 Morpho Looper 54,000 5.1% Cap stcUSD, Morpho, Pendle/Spectra 2026-01-28
7 0x7130...f8f USDC to sUSDS Lender 49,995 4.7% Sky/MakerDAO 2026-03-09
8 0x2f56...179 Arbitrum syrupUSDC/USDC Morpho Looper 30,000 2.8% Maple syrupUSDC, Morpho, CCTP 2026-03-10
9 0x9e0A...75b USDC To Spark USDS Depositor 21,507 2.0% Spark, Sky/MakerDAO 2026-01-19
10 0x48E6...a93 USDC To SKY USDS Depositor 0 0.0% Sky/MakerDAO 2026-01-28
11 0x00C8...4cF USDC Fluid Lender 0 0.0% Fluid 2026-01-31
12 0x1983...9e Arb Yearn Degen Morpho Compounder 0 0.0% Morpho, CCTP 2026-03-04

Note: 5 strategies have been revoked during the vault's ~50-day history, indicating active portfolio management. 6 strategies are in the default withdrawal queue; 6 are active but outside the queue.

Strategy Protocol Dependencies with Existing Reports

Several underlying protocols have been previously assessed in this repository:

Protocol Report Score yvUSD Allocation
3Jane USD3 3.5/5 (Medium Risk) 33.0%
InfiniFi 2.8/5 (Medium Risk) 32.6% (two strategies)
Maple syrupUSDC 2.33/5 (Low Risk) 12.2% (two strategies)
Fluid 1.1/5 (Minimal Risk) 0% (currently inactive)
Spectra 2.25/5 (Low Risk) Used for PT token infrastructure

Audits and Due Diligence Disclosures

Yearn V3 Core Audits

The underlying vault infrastructure has been audited by 3 reputable firms:

Auditor Date Scope Report
Statemind May 2, 2024 V3 Vaults (v3.0.0) PDF
ChainSecurity May 4, 2024 V3 Vaults + Tokenized Strategy (v3.0.0) 2 PDFs
yAcademy Jun 2024 V3 Vaults (v3.0.1) PDF

yvUSD-Specific Audits

No external third-party audit specifically covering the CCTPStrategy cross-chain code, the LockedyvUSD cooldown wrapper, or individual yvUSD strategies was found. However, the CCTPStrategy has undergone strict internal review by ySec (Yearn's security team). All strategies go through Yearn's rigorous internal review process (see Strategy Review Process below).

Strategy Review Process

Yearn uses a formal 12-metric risk scoring framework (RISK_FRAMEWORK.md) for evaluating and approving strategies. The framework scores strategies across two dimensions:

Strategy-Related Scores (6 metrics):

  • Review — number of Sources of Trust (internal strategist, peer review, expert review, ySec security review, recurring security review)
  • Testing — code coverage requirements (score 1 = 95%+, score 5 = <70%)
  • Complexity — source lines of code (score 1 = 0-150 sLOC, score 5 = 600+)
  • Risk Exposure — potential loss percentage
  • Centralization Risk — off-chain management dependency
  • Protocol Integration — number of external protocols integrated

External Protocol-Related Scores (6 metrics):

  • Auditing — number of trusted audits on external protocols
  • Centralization — owner control/governance of external protocols
  • TVL — active total value locked
  • Longevity — contract deployment age
  • Protocol Type — category (blue-chip vs novel vs cross-chain vs off-chain)

All 12 scores are summed and mapped to risk levels (Level 1-4). ySec can make exceptions with textual justification. This is a rigorous, documented process that provides strong assurance for strategy quality even without external audits on individual strategies.

Underlying Protocol Audits

Protocol Audit Coverage Notes
Morpho 25+ audits (Trail of Bits, Spearbit, OpenZeppelin, ChainSecurity, Certora) Blue-chip. Formal verification by Certora
Pendle 6+ audits (Ackee, Dedaub, ChainSecurity, Spearbit, Code4rena) Well-established
Circle CCTP ChainSecurity (V1 2023, V2 March 2025, V2 update April 2025, Gateway July 2025) Trust-minimized bridge
Sky/MakerDAO Extensively audited across many years Blue-chip
Spark Inherits MakerDAO audit coverage Blue-chip
Cap (stcUSD) TODO — no specific audit information found in public documentation ~$500M TVL. Assessed internally as risk-2 (non-public report)

Bug Bounty

On-Chain Complexity

The yvUSD system is moderately complex:

  • 12 active strategies across 2 chains (Ethereum + Arbitrum)
  • Cross-chain accounting via Circle CCTP (destination chain reports back to origin via CCTP on _harvestAndReport())
  • Looper strategies using Morpho for leveraged yield (borrow-against-collateral loops)
  • PT token strategies with maturity dates requiring rollover
  • Custom accountant (LockedyvUSD) combining cooldown/locking mechanics with fee management
  • Multiple protocol dependencies (8+ distinct protocols)
  • V3 vault itself is non-upgradeable (immutable Vyper minimal proxy)

Historical Track Record

  • Vault deployed: January 19, 2026 (block 24271831) — ~53 days in production
  • TVL: ~$3.02M USDC — early stage with a $5M deposit limit
  • PPS trend: 1.000000 → 1.004613 (~0.46% appreciation over 53 days, ~3.2% annualized)
  • Security incidents: None known for this vault or Yearn V3 generally
  • Strategy changes: 17 strategies have been added over the vault's lifetime, 5 have been revoked, indicating active and frequent portfolio management
  • Yearn V3 track record: V3 framework has been live since May 2024 (~22 months). No V3 vault exploits

Yearn protocol TVL: ~$240M total across all chains (DeFi Llama, March 2026).

Funds Management

yvUSD deploys deposited USDC across 12 strategies with 100% capital utilization (0 idle). Strategies fall into four categories:

Strategy Categories

1. Looper Strategies (57.9% of TVL)

Strategies that borrow against collateral on Morpho to achieve leveraged yield positions. These include:

  • PT siUSD March 25 Morpho Looper (18.5%)
  • Infinifi sIUSD Morpho Looper (14.1%)
  • syrupUSDC/USDC Morpho Looper (9.4%)
  • PT stcUSD Jul 23 Morpho Looper (5.1%)
  • Morpho Yearn OG USDC Compounder (10.3%)
  • Arbitrum syrupUSDC/USDC Morpho Looper (2.8%, cross-chain)

Looper risk: These strategies are leveraged — they borrow USDC on Morpho against collateral (PT tokens, siUSD, syrupUSDC). If the collateral depegs or the Morpho market becomes illiquid, positions may face liquidation or inability to unwind.

2. Fixed-Rate PT Strategies (33.0% of TVL)

  • USD3 Pendle PT Maxi (33.0%) — holds Pendle Principal Tokens backed by 3Jane USD3

PT risk: PT tokens have fixed maturity dates. Before maturity, exit requires selling on AMM (Pendle/Spectra) at potentially unfavorable rates. At maturity, PT is manually rolled over by converting to SY (yield token) via a rollover() call on the strategy — this process cannot steal user funds. If not rolled over, the position simply holds the redeemed underlying.

3. Lending Strategies (6.7% of TVL)

  • USDC to sUSDS Lender (4.7%) — deposits into Sky/MakerDAO
  • USDC To Spark USDS Depositor (2.0%) — deposits into Spark

Lending risk: Standard DeFi lending risk. Sky and Spark are blue-chip protocols with extensive audit coverage.

4. Cross-Chain Strategies (2.8% active, with inactive allocations)

Two strategies bridge USDC to Arbitrum via Circle CCTP:

  • Arbitrum syrupUSDC/USDC Morpho Looper (2.8%)
  • Arb Yearn Degen Morpho Compounder (0%, inactive)

Cross-chain risk: Bridge delays (CCTP attestation time), and remote chain execution risk.

Accessibility

  • Deposits: Permissionless — anyone can deposit USDC and receive yvUSD (ERC-4626 standard). Subject to $5M deposit limit
  • Withdrawals: ERC-4626 standard. Users can redeem yvUSD for USDC. However:
    • 100% of funds are deployed (0 idle) — withdrawals require unwinding strategy positions
    • Cross-chain strategies require CCTP bridging back, which takes time
    • PT strategies may have liquidity constraints before maturity
    • Looper strategies require deleveraging, which may take multiple transactions
  • LockedyvUSD: Optional lock wrapper with 14-day cooldown + 5-day withdrawal window. Yields a "locker bonus" but restricts exit timing
  • No fees on deposits/withdrawals — fees are taken via the accountant during process_report (performance/management fees)

Collateralization

  • 100% on-chain USDC backing — all deposits are USDC, all strategy positions ultimately track back to USDC value
  • Collateral quality varies by strategy:
    • Blue-chip (Sky, Spark, Fluid): 6.7% of TVL
    • Established with review (Morpho, Maple, Pendle): used across 70%+ of strategies
    • Medium-risk (3Jane 3.5/5, InfiniFi 2.8/5): 65.6% of TVL — the majority of funds are in protocols with Medium Risk scores
    • Low-risk (Cap stcUSD, internal risk-2): 5.1% of TVL
  • Leverage via looper strategies: Borrowing against collateral on Morpho. TODO: verify exact max LTV parameters and liquidation buffers per Morpho market

Provability

  • yvUSD exchange rate: Calculated on-chain via ERC-4626 standard (convertToAssets()/convertToShares()). Fully programmatic, no admin input
  • Strategy positions: Each strategy's totalAssets() is on-chain. The vault's totalAssets() is the sum of all strategy debts
  • Cross-chain lag: For cross-chain strategies, remoteAssets on the origin is updated when CCTP messages arrive (sent automatically by _harvestAndReport() on the destination chain). Between report cycles, the value can be stale — the vault's reported totalAssets() may not reflect real-time changes on Arbitrum
  • Profit/loss reporting: Profits are reported by keepers via process_report() and locked for gradual distribution over 7 days (profitMaxUnlockTime). Losses are immediately reflected in PPS

Liquidity Risk

  • Primary exit: Redeem yvUSD for USDC via ERC-4626 withdraw()/redeem(). Subject to strategy liquidity
  • Zero idle funds: Currently 100% of vault assets are deployed to strategies. Withdrawals require unwinding positions
  • Strategy withdrawal constraints:
    • Looper strategies: Must deleverage on Morpho (may require multiple keeper transactions)
    • PT strategies: Before maturity, must sell PTs on AMM (potential slippage). At maturity, manual rollover via rollover() call converting PT to SY
    • Cross-chain strategies: Withdrawal triggers CCTP bridging back from remote chain (hours for CCTP attestation)
    • Lending strategies (Sky, Spark): Generally liquid for immediate withdrawal
  • DEX liquidity: No known DEX liquidity pools for yvUSD. The vault is an ERC-4626 token, not traded on DEXes
  • LockedyvUSD: 14-day cooldown + 5-day withdrawal window. Shares in cooldown cannot be transferred
  • Same-value asset: USDC-denominated vault token — no price divergence risk from the underlying
  • Deposit limit: $5M cap limits both concentration risk and indicates early stage

Centralization & Control Risks

Governance

The yvUSD vault uses a different governance pattern from the standard Yearn V3 Role Manager. For comparison, the standard Yearn mainnet vault (yvUSDC-1, 0xBe53A109B494E5c9f97b9Cd39Fe969BE68BF6204) uses the Yearn V3 Vault Role Manager contract (0xb3bd6B2E61753C311EFbCF0111f75D29706D9a41), which is governed by the Yearn ySafe 6-of-9 multisig. The yvUSD vault instead uses a direct multisig as role manager, since the standard Yearn Role Manager manages vault-level governance but does not manage strategy operations — yvUSD's multi-strategy, cross-chain design requires a dedicated operational Safe.

Role Manager: 3-of-8 Gnosis Safe (0x16388463d60FFE0661Cf7F1f31a7D658aC790ff7)

  • Threshold: 3-of-8
  • Holds all 14 vault roles (bitmap 16383)
  • Signers are Yearn team members, spanning core contributors and the security team. Not publicly labeled on Etherscan but confirmed as known Yearn insiders
  • No timelock on any actions
  • 3,130 transactions processed as of March 2026 — very active multisig Deployer EOA roles — removed: 0x1b5f15DCb82d25f91c65b53CEe151E8b9fBdD271

This EOA (also a Safe owner and the vault deployer) previously held 11 of 14 vault roles directly. Safe transaction nonce 3130 has been executed, calling set_role(0x1b5f...d271, 0) to remove ALL vault roles from this EOA. All vault operations now require 3-of-8 multisig approval.

The same transaction also:

  • Accepted management of 8 strategies
  • Set LockedyvUSD withdrawal window to 5 days (from previous 7)
  • Set keeper on a new strategy
  • Adjusted profit unlock timing on another vault

Note: This EOA remains the sole governance address on the Fee Splitter contract (0xd744B7D6bE69b334766802245Db2895e861cb470).

Governance assessment:

  1. No timelock on any governance action — changes take effect immediately. The team has confirmed there are no plans to add a timelock at this time
  2. No EOA role concentration — Safe tx nonce 3130 has been executed, removing all direct vault roles from the deployer EOA. All vault operations now require 3-of-8 multisig approval. The EOA retains governance of the Fee Splitter contract only
  3. Known Yearn team signers — all 8 Safe owners are confirmed Yearn contributors (core team + security team)
  4. Independent from Yearn global multisig — the 6/9 Yearn multisig has no roles on this vault, but the separation is by design (strategy-focused governance vs vault-level governance)

Programmability

  • Exchange rate (PPS): Calculated on-chain algorithmically via ERC-4626. Fully programmatic, no admin input
  • Vault operations: Deposit/withdraw are permissionless on-chain transactions
  • Strategy profit/loss: Reported programmatically by keepers via process_report(). Profits unlock linearly over 7 days. Losses are immediate
  • Debt allocation: Requires manual intervention by DEBT_MANAGER role (3-of-8 multisig)
  • Cross-chain accounting: When report() is called on the destination chain, _harvestAndReport() automatically queues a CCTP message back to the origin. No separate keeper relay required. Can be stale between report cycles
  • V3 vaults are immutable — no proxy upgrades, no admin-changeable implementation

External Dependencies

Dependency Criticality Allocation Notes
Morpho Critical ~60% (6 strategies) $6.6B TVL, 25+ audits, formal verification. Used for looper leverage and USDC compounding
3Jane USD3 Critical 33.0% Report score 3.5/5. Unsecured credit-based lending, ~$16M TVL. Highest allocation to a single medium-risk dependency
InfiniFi Critical 32.6% Report score 2.8/5. Stablecoin protocol deploying into various DeFi strategies, ~$150M TVL
Maple syrupUSDC High 12.2% Report score 2.33/5. Overcollateralized institutional lending, ~$1.7B TVL
Pendle/Spectra High Used in PT strategies $2.1B TVL (Pendle), 6+ audits. PT token infrastructure for fixed-rate yield
Cap (stcUSD) Medium 5.1% ~$500M TVL. Yield-bearing stablecoin. Internal assessment: risk-2 (non-public)
Sky/MakerDAO Medium 4.7% Blue-chip, extensively audited. Stable lending yield
Spark Low 2.0% Part of Sky/MakerDAO ecosystem. Blue-chip
Circle CCTP High Cross-chain bridge Audited by ChainSecurity (V1 + V2). Trust assumption: Circle attestation (same trust as holding USDC)
Fluid Low 0% (inactive) Report score 1.1/5. Currently no allocation

Dependency concentration: 65.6% of vault funds are deployed into protocols with Medium Risk scores (3Jane 3.5/5 + InfiniFi 2.8/5). This is a significant concentration in higher-risk dependencies.

Operational Risk

  • Team: Yearn Finance — established since 2020, publicly known contributors. The Yearn global multisig has 9 named signers including Mariano Conti (ex-MakerDAO), Leo Cheng (C.R.E.A.M.), 0xngmi (DeFiLlama), Michael Egorov (Curve), and others
  • yvUSD governance: The vault is managed by a separate 3-of-8 Safe (not the Yearn global multisig). However, all 8 signers are confirmed Yearn team members (core contributors and security team), providing high trust in the governance quality
  • Documentation: Comprehensive Yearn V3 documentation. yvUSD-specific docs are now published on the official Yearn docs site, including cross-chain strategy architecture, LockedyvUSD mechanics, and a dedicated APR API service (yvusd-api.yearn.fi)
  • Legal: Yearn Finance has converted its ychad.eth multisig into a BORG (cybernetic organization) via YIP-87, wrapping it in a Cayman Islands foundation company with smart contract governance restrictions. The YFI token governs the protocol via YIP proposals
  • Incident response: Yearn has demonstrated incident response capability across historical events. V3 framework has not been tested under stress. The $200K Immunefi bug bounty provides a responsible disclosure channel
  • V3 immutability: Vault contracts cannot be upgraded — this eliminates proxy upgrade risk but means bugs cannot be patched without deploying a new vault

Monitoring

Existing Monitoring Infrastructure

Yearn maintains an active monitoring system via the monitoring-scripts-py repository:

  • Large flow alerts (yearn/alert_large_flows.py): Runs hourly via GitHub Actions. Monitors deposit/withdrawal events via Envio indexer, alerts on flows exceeding $5M threshold via Telegram. Currently monitors 21 vaults across Ethereum, Base, Arbitrum, and Katana
  • Endorsed vault check (yearn/check_endorsed.py): Runs weekly, verifies all Yearn V3 vaults are endorsed on-chain via the registry contract
  • Timelock monitoring (timelock/timelock_alerts.py): Monitors Yearn TimelockController across 6 chains

Note: yvUSD is not yet added to the monitored vault list in alert_large_flows.py, but the infrastructure is in place and can be extended.

Additionally, Yearn provides a dedicated yvUSD APR API (yvusd-api.yearn.fi, source) that aggregates on-chain vault/strategy accounting with off-chain APR oracle computations. Endpoints include /api/health (data recency), /api/aprs (precomputed APRs), and /api/snapshot (raw strategy cache). A DeBank bundle (portfolio view) provides a consolidated view of all vault fund positions.

Key Contracts (Ethereum)

Contract Address Monitor
yvUSD Vault 0x696d02Db93291651ED510704c9b286841d506987 PPS (convertToAssets(1e6)), totalAssets(), totalDebt(), totalIdle(), Deposit/Withdraw events
LockedyvUSD 0xAaaFEa48472f77563961Cdb53291DEDfB46F9040 Cooldown events, configuration changes (cooldown duration, withdrawal window)
Role Manager Safe 0x16388463d60FFE0661Cf7F1f31a7D658aC790ff7 Signer/threshold changes, submitted transactions
Deployer EOA 0x1b5f15DCb82d25f91c65b53CEe151E8b9fBdD271 Fee Splitter governance changes (vault roles removed)
Fee Splitter 0xd744B7D6bE69b334766802245Db2895e861cb470 Governance changes, fee distribution changes

Critical Events to Monitor

  • PPS decrease — any decrease in convertToAssets(1e6) indicates a loss event. Should only increase
  • Strategy additions/removals — StrategyChanged events indicate portfolio changes
  • Debt allocation changes — UpdatedMaxDebtForStrategy and DebtUpdated events
  • Emergency actions — Shutdown event on vault
  • Signer/threshold changes on the 3-of-8 Safe
  • Cross-chain strategy accounting — monitor remoteAssets for staleness (compare to actual on-chain positions on Arbitrum)
  • Looper strategy health — monitor Morpho market positions for proximity to liquidation
  • PT token maturity — track expiry dates of Pendle/Spectra PT positions
  • Underlying protocol health — monitor 3Jane, InfiniFi, and Cap for incidents

Monitoring Functions

Function Contract Purpose Frequency
convertToAssets(1e6) Vault PPS tracking Every 6 hours
totalAssets() Vault Total TVL Daily
totalDebt() / totalIdle() Vault Capital deployment ratio Daily
strategies(address) Vault Per-strategy debt, last report time Daily
get_default_queue() Vault Withdrawal queue composition Weekly
getThreshold() / getOwners() Safe Governance integrity Daily

Reassessment Triggers

  • Time-based: Reassess in 2 months (May 2026) given the vault's extreme youth
  • TVL-based: Reassess if TVL exceeds $10M or changes by more than ±50%
  • Incident-based: Reassess after any exploit, strategy loss, governance change, or underlying protocol incident (especially 3Jane, InfiniFi, or Cap)
  • Governance-based: Reassess if the Safe composition changes (signer additions/removals, threshold changes), if a timelock is added, or if the vault migrates to the Yearn global multisig. Reassess if the Fee Splitter governance is transferred from the deployer EOA to the multisig
  • Audit-based: Reassess if CCTPStrategy or yvUSD-specific components receive dedicated external audits (should improve Audits score)
  • Dependency-based: Reassess if 3Jane, InfiniFi, or Cap experience significant events. Reassess if Morpho looper markets face liquidation stress
  • Strategy-based: Reassess if allocation to medium-risk protocols exceeds 70% or if leverage ratios increase significantly
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