Yearn Finance Newsletter #63

yNewsletter #63

Welcome to the 63rd edition of the Yearn Finance Newsletter. Our aim with this newsletter is to keep the Yearn and the wider crypto community informed of the latest news, including product launches, governance changes, and ecosystem updates. If you’re interested in learning more about Yearn Finance, follow our official Twitter and Medium accounts.

Summary

• yETH! YIP-72 Passes!
• Yearn Finance Alpha: Budget Requests & V3
• Exploit on iEarn
• Yearn’s Graphic Novel!
• Community and Ecosystem News

yETH! YIP-72 Passes!

veYFI voters have overwhelmingly voted ‘For’ the launch of yETH on the recent snapshot: YIP-72: Launch yETH! Going forward, holders of st-yETH will decide yETH’s future: “yETH is designed to be governed by its token holders who decide on assets to onboard and configure the protocol.”

• Attention fellow LSD Protocols: The yETH Proposal section, ‘yETH in a nutshell’ has a few points worth noting:
  yETH’s voting mechanisms encourage inclusivity of additional LSD’s for the yETH’s index, and is poised for the adoption of up to 5 LSDs upon launch (see section 5.4). If you’re a protocol that wants to take this trip with Yearn, all Protocols will have a chance at whitelist per Section 5 (and Section 3.2).
• How does yETH benefit st-yETH holders?
  Consider the bribe system for weighting. st-yETH holders get 90% of yield from eth staking, plus swap fees, plus bribe income, making yETH a premier staking derivative option.
  These features cultivate incentive and potential for other LSD’s to deploy their treasury assets into yETH for direct voting vs paying bribes, further encouraging scaling and investment into yETH. Realized gains, boosted adoption of their own LSD, and distribution of risk? Moar, please!
• How does yETH benefit veYFI?
  yEth will benefit veYFI holders via Vault Performance Fees (10%), and 1% incentive rewards that go to Yearn Treasury, of which a portion are used for YFI buybacks, which is distributed to veYFI holders. As yETH scales in size, so will the returns.

Yearn Finance Alpha: Budget Requests & v3

Yearn contributors submit public budget requests that outline the scope of work for a given project or task, so you can see what Yearn is building behind the scenes, and how those funds are being spent. Yearn is always building, go see for yourself!

• Looks like v3 is getting close! Here is v3 Team’s Request for development, testing, and deployment. As a reminder, the v3 upgrade will be the biggest collection of updates in Yearn’s history. Check out the 62nd edition of our yNewsletter for a comprehensive refresher.
• Here is s2 Team’s Request to prepare for the implementation of the v3 migration, utilizing 6 KPI’s (Key Performance Indicators) to track progress and performance.

Exploit on iearn

There has been an exploit of iearn’s yUSDT, a legacy, deprecated product that predated v1 and v2 vaults. Unfortunately, some Curve pools (y, busd, pax) and v1 and v2 vaults where these LP tokens were deposited, were affected. Some important takeaways from the exploit:

• The impact constituted ~$11M in drained iearn tokens.
• iearn predated YFI. All unaudited content was removed from Yearn’s primary site in 2021. This included iearn and v1 vaults.
• Yearn keeps v1 and v2 sites active so that individuals may withdraw from older, deprecated pools.

• We highly recommend that you give this thread by Storm a read, as it provides a detailed perspective from inside the War Room, and a look into how teams handle these types of exploits:

• Although No Yearn Vault or Strategy code was exploited, it’s important to note that utilizing a Yearn vault to wrap a token does not protect you from an issue with the underlying token itself.
• No Reimbursement Plan has been announced. More information will be shared when it becomes available.
• Friendly DeFi Reminder: Legacy contracts cannot be paused, so Users must self exit. Please keep track of your tokens so that you don’t find yourself utilizing a deprecated token/pool/protocol.

Yearn’s Graphic Novel!

Yearn’s own graphic novel is coming out after 1.5 years in the making! Stay tuned for more…

Community and Ecosystem News

Love for Yearn Finance goes beyond being the most callipygian protocol!

• Wido has partnered with Yearn Finance as our Official Zap Provider! With Wido Router, it’s easier than ever to “Deposit any token into any pool, farm, or vault!”

• Check out these yThighs that made their debut at ETH Tokyo! Well done, Kay! PS, please post a link for these so we can get some for our own waifu’s? Thanks!

• Yearning for more content? Check out Defiglenn for community news featuring their insightful contributor perspective!
• Yearn’s Marco Worms also has been working on some incredible concepts, including, “yGenius: a GPT-powered bot that indexes the Yearn Ecosystem knowledge so you can query it with a universal chat interface.”

We hope you’ve enjoyed reading April’s yNewsletter. Remember, you are Yearn, and all of us can contribute to help create the changes we want to see. If you want more information (or even just want to say, Hi!), we hope you’ll visit us in our Yearn community Discord and Telegram channels!