Yearn Finance yNewsletter #69

Welcome to the 69th edition of the Yearn 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, follow our official Twitter and Medium accounts.

Summary

• yETH is Live
• Yearn v3 is now (kinda) live (on Polygon). And so are the v3 Docs!
• yearn.fi factory vaults are now available on Base!
• ‘Drop the nance.’ Yearn.finance is now Yearn.fi
• Yearn Remembers. Do you?
• Yip-74 & YIP-75 Recaps
• Yearn doesn’t use upgradable Proxies
• yAcademy Highlights
• Hack the Vault: GG
• Content Feat. Yearn Contributors
• #JustCornThings
• Yearn subsidizes bounties on Vyperlang alongside Curve & Lido
• Community and Ecosystem News

yETH is Live

yETH IS LIVE! May the memes be many, and the yETH yield be yolked.

“But what if I don’t have yETH to stake to st-yETH?”

Well, if you don’t have sfrxETH, or swETH, or wstETH, or ETHx, or cbETH to Deposit and acquire yETH on the yeth.yearn.fi site…

…yETH is now available via @CowSwap !

Take your yETH to yeth.yearn.fi, go to Stake/Unstake, and stake your yETH to acquire st-yETH.
Remember, yETH does not earn liquid staking yield — only st-yETH does.

The APR isn’t Despicable — it’s the yield from last week. You can still be a minion-aire — just don’t forget to Vote! Voting starts this week.

See? Even the Lizard People are getting excited.

Still on the fence? Well, maybe you should carefully get down from there. Each asset in yETH has its own asset composition safety band, and as a basket of 5 LST’s, yETH is a risk-adjusted token by design.

No truer words have ever been spoken by William Stakespeare. Sourced from Stakespeare’s masterpiece, Sonnet 18, “Shall I compare yETH to a Summers day?” written in iambic pentameter, it is an inspirational piece that has moved liquidity in ways never seen before. As you contemplate your yield, along with the rhyme scheme, ababcdcdefefgg, we encourage you to listen to the brilliance presented by the Rich Men of North Richmond as they sing a song that truly captures our generation’s plight in DeFi.

Yearn v3 is now (kinda) live (on Polygon). And so are the v3 Docs!

When the simps in the crib ma,
doc it like it’s hot,
doc it like it’s hot,
doc it like it’s hot…
When the Yanks try to “Soccer” you,
Footy like it’s hot,
Footy like it’s hot,
Footy like it’s hot,
I got the V3 on deploy and tokenized strats,
and I fund the best Leagues 4626 on stacks…

Armed with the V3 docs, unique ERC-4626 compliant tokenized strategies are yours to create. Just ask Schlag — he deployed his own ERC-4626 compliant Fantasy Football League.
Be creative like Schlag. Schlag is a dime piece — just like our V3 docs.

In case you forgot, “the default fee is 0”.

yearn.fi factory vaults are now available on Base!

Vaults deployment by @aerodromefi ❤ While on yearn.fi/vaults, simply switch to Base Network, and the Base Vaults will be revealed!
For those looking for more details, this article provides additional insight into YearnFi’s recent integration with Base.

‘Drop the nance.’ Yearn.finance is now Yearn.fi

How do you bring sexy back, when sexy never left?
You make it cleaner.
yearn.finance is now yearn.fi

Yearn Remembers. Do you?

Remember wen Moon?

Remember that they Yearn.

Remember that code is speech.

Remember that we’re in this together.

Yip-74 & YIP-75 Recaps

Yip-75: Launch V3 has passed! 194veYFI “For” to 38 veYFI “Against”.
V3 contracts are already deployed on multiple chains, with an initial rollout focus directed to Polygon chain. By implementing V3 in areas where V2 has a limited presence, Yearn can increase market share while also battle testing V3 code prior to starting TVL migration on Ethereum.

YIP-74 has been voted “Against” by a significant majority: 10 veYFI “For” to 167 veYFI “Against”.
Discourse within the gov.yearn.fi proposal forum was amicable and detailed, and included revisions with an updated proposal. Wintermute’s Ask: “Wintermute Trading is requesting approval for a 12-month loan of 350 YFI ($2.18M) at a 0.10% interest rate from the DAO’s treasury.”
In return, Wintermute would “use up to 3M CRV tokens to buy yCRV, deploy yCRV tokens to the yCRV-CRV pool and stake this on yearn.”

• Additional terms can be found in the snapshot vote, linked above.
  Primary concerns were centered around Wintermute’s lack of collateralization, and overall “unbalanced” proposal terms. Although the revised proposal was raised to YIP status, the veYFI voters within the Yearn community were not receptive to Wintermute’s proposal terms.
• For additional information and coverage, check out this article covered by DLNews, featuring an interview with Wintermute’s CEO.

Yearn doesn’t use upgradable Proxies

Yearn is notorious for not using upgradable proxies anywhere. This is a risk-mitigating standard utilized to benefit Yearn Vault users.
Requiring users to upgrade or risk losing their funds is not in alignment with Yearn’s core values of providing risk-mitigated yield to users via more “passive yield” strategies.
Therefore, if a new version of a vault becomes a better option, the old vault continues to earn yield, and all its strategies are routed into this new vault. This allows the users to migrate anytime or continue to earn yield in the old vault.

• As a friendly reminder, all DeFi users should always be monitoring their wallets, deposits, and funds due to new, and ever-present risks in this rapidly evolving space.

yAcademy Highlights

yAcademy recently participated in their first Gitcoin Grants round, GG18! For those unfamiliar, “Gitcoin Grants is a quarterly initiative empowering early-stage builders through a combination of crowdfunding and grants.”

• DeFi builders can submit applications demonstrating that they qualify for the criteria established for the respective two-week grant round. During that two-week period, anyone can drive funding and make individual donations towards the qualifying builders.
• Gitcoin Grants then uses a Quadratic Funding method and funds from their Matching Partners to “match” the funding raised, wherein the number of contributions is weighted more heavily than the amount funded.
• Funds raised are provided to the builder, so that they can continue building and positively contributing to DeFi’s growth, and for the betterment of the greater community.
• Follow @yAcademy on Twitter, so you don’t miss a future opportunity to contribute to your favorite free and open-source auditing academy. It’s a public good.

Congratulations to yAcademy’s first ZK Auditing Fellowship graduates! To celebrate this thicc release of brainpower out into the world, yAcademy is “open-sourcing the entirety of the first ZK Auditing Felowship that just concluded.”

• This thread takes you through highlights, quizzes, modules, and even reminds us that some of the best auditors have come from non-STEM backgrounds. So, Anon, if you find yourself inexplicably pulled into yAcademy’s open-sourced auditing content, embrace those feels, and go apply at yAcademy today. Applications are now open.

@Bl4ckb1rd71 Delivers on 30 days straight of daily security alpha threads! Engn33r is a well recognized contributor to all things Web3 security-related. Fun fact: when you combine all of his posts, it’s almost as long as a single Adam Cochran thread.

• Need a best-in-class Security Audit for your protocol? Submit an inquiry to yAuditDao here!

Hack the Vault: GG

The V3 Vault remains unscathed and unhacked. The vault’s contents have been removed.
If I had to guess why the Vault was left unhacked, I’d probably attribute it to the fact that the CT hackers forgot to rent matching mini-coopers for their heist.
Also, Yearn takes security seriously.
To those who participated, we thank you for playing and supporting the CT Battle Test game!

Content Feat. Yearn Contributors

@Storming0x, a key member of Yearn’s security team, discusses war rooms and hacks on the Scraping Bits Podcast.

Yearn Contributors, Pickles and Korin, are caught discussing the benefits of being early. If you participated in Bootstrapping yETH and have st-yETH, it’s likely you reaped the benefits along with a couple of our favorite hooligans. Be like @Yabirgb so you don’t miss the alpha.

@MarcoWorms features @fubuloubu’s excellent write-up discussing the parallels between hardware engineering and building aircraft. The article explores how various concepts of aerospace engineering can be applied to building smart contracts, and provide beneficial failure mitigation during various phases of development.

In this write-up, you will learn about FMECA, FHA, and TRL scores, and how to increase the probability of hitting PMF. @Fabululoubu goes on to describe how Crypto typically utilizes “test in prod” implementation, similar to how aerospace projects go through Ground and Flight Test procedures. With @cHaOSneT, “test in prod” becomes viable via an “ephemeral testnet product” in which full-stack simulations can be run whilst limiting impact to project teams and users.

@Fubuloubu explores building a ERC4626 on-chain “yield oracle” tied to Vault implementation, discusses ERC-4626 evolution, and shares their Call to Action for ERC-4626 vaults to conform to the standard for smooth integration in the community. Yearn V3 embraces the ERC-4626 standard, and we hope other DeFi projects will as well for the benefit of the larger crypto community.

@SaltyFacu, a longtime Yearn contributor and open-source contributor with over 20 years of experience, offers their support to Connext as an official Connext Delegate. The Connext DAO Delegation application process provides potential Delegates with an opportunity to showcase their expertise, and feedback given a few sample voting issues. Click here for more information about the @Connextnetwork.

Vote for @aliatiia_ for the @Arbitrum DAO Security Council! Ali is a dedicated founder and contributor to @yAuditDAO and @yAcademyDAO, consistently taking all opportunities to encourage best security practices. Give Ali’s statement a read, in which he states that protecting users is his primary priority. Ali has Qualified for Round 2, so continue to keep a lookout for further updates, as Round 2 will begin on Oct. 6th. We hope you’ll show your support!

#JustCornThings

Yearn’s Corn is always dropping alpha on CT. Let’s see what he’s been up to…

Check out Corn repping Yearn’s yETH at the LSTfi Summit !

Corn discusses the ethos maintained in the creation of yETH, and its development and (potential) application(s).

Yearn PMF. “Yearn started to prove the model for yield-bearing collateral…this is a real thing that TradFi doesn’t have…” This and more on the full episode.

Have some Yearn Vault Tokens chilling in the OP Vaults? @vmexfinance now offers users to take loans out against select vault assets on Optimism!

Don’t forget about the oETH Factory Vault, and explore others that have been deployed since this post was made.

Yearn subsidizes bounties on Vyperlang alongside Curve & Lido

Yearn, Lido, and Curve contribute funding towards bug bounty programs and security initiatives related to Vyper. With this continued support along with the rest of the community, @immunefi and @CodeHawks have been able to team up with @Vyperlang to facilitate Vyper compiler auditing competitions and other bounty programs so that Vyper can continue to evolve safely and securely. Join the @Vyperlang Discord to start building today!

Community and Ecosystem News Feat. Scraping Bits Podcast &

Love for Yearn goes beyond being the most callipygian protocol!

Yearn and @ExactlyProtocol fueled a 5% growth ($90M TVL) on Optimism!

Rudy, you dirty, dirty dog… OP rewards are for everyone. Not just you. Go to Optimism and help Yearn contribute to those massive market cap boosts shown in the Messari reports!

yvDAI farming was showcased by Gearbox Protocol. The APY was so high that rumors spread claiming Willie Nelson had decided to partake with the Gearbox team.

If you want more action for your DAI (and YFI!), you can also check out the @ajnafi pool!

@GizaTechxyz collaborates with Yearn to explore the potential of Automated Risk Assessment for V3.

@WeAreSEBA from SEBA Bank AG, a Swiss financial service provider, does a deep dive into Yearn’s V3.

Here is a Yearn V3 Highlights refresher for those who would like more info!

@Swellnetworkio features swETH’s position in yETH’s total composition. At the time of writing this article, swETH’s position has grown to represent over 30% of yETH’s basket of LSTs! sfrxETH is second with approx. 26%.

YFI is featured on a StakeDaoHQ — focused on identifying Liquid Staking platforms for governance tokens. Soon…

@HighYieldUSD, deployed in collaboration with @reserveprotocol’s hyUSD, showcases the hyUSD/eUSD Yearn LP as a high-yield opportunity for you farmers out there.

Earn yield on your YFI via the YFI silo, and borrow crvUSD. Or be a crvUSD provider to the YFI silo. Personally, I went with the first option and then took my crvUSD to acquire more st-yETH. There are lots of applications and strategies you can utilize with your crvUSD — just don’t over-extend your lending position, and as in all lending protocols, monitor your Health factor — you may need your YFI sooner than you think.

The Future of Finance won’t belong to anybody, but everybody.

This month’s featured artwork is by artist, Rylen! Rylen made these psychedelic POAPs for Yearn for ETHCC 2023! We thank you for your most groovy contribution ❤

• More of Rylen’s incredible artwork can be found Here.

We hope you’ve enjoyed reading this month’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 just want to say, Hi!), we hope you’ll visit us in our Yearn community Discord and Telegram channels!