Yearn — yvUSD

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	Onchain APR estimation
Fee Splitter	0xd744B7D6bE69b334766802245Db2895e861cb470	Revenue distribution

Governance Contracts

Contract	Address	Configuration
Yearn V3 Role Manager	0xb3bd6B2E61753C311EFbCF0111f75D29706D9a41	Standard Yearn Role Manager — vault role_manager
Strategy Manager (Timelock)	0x88ba032be87d5eF1FbE87336b7090767f367bF73	TimelockController — 7-day delay. Governs the RoleManager. TIMELOCK_ADMIN_ROLE held only by the timelock itself (not Daddy or any EOA). DEFAULT_ADMIN never granted (admin = address(0) at construction) — no one can grant/revoke roles outside the propose→wait→execute flow
Daddy / ySafe (Governance)	0xFEB4acf3df3cDEA7399794D0869ef76A6EfAff52	6-of-9 Gnosis Safe — sole PROPOSER on timelock; also EXECUTOR and CANCELLER (shared). Holds nearly all vault roles (bitmask 0x3FF6)
Brain (Operations)	0x16388463d60FFE0661Cf7F1f31a7D658aC790ff7	3-of-8 Gnosis Safe — operational roles + CANCELLER on timelock. Also management on all funded strategies
Security	0xe5e2BAf96198c56380DDd5e992D7d1adA0E989C0	4-of-7 Gnosis Safe — DEBT_MANAGER, MAX_DEBT_MANAGER, EMERGENCY_MANAGER
Debt Allocator	0x1E9eB053228B1156831759401DE0E115356b8671	Contract — REPORTING_MANAGER, DEBT_MANAGER
Keeper	0x604e586F17cE106B64185a7A0d2c1DA5BaCe711e	yHaaSRelayer — REPORTING_MANAGER
Deployer EOA	0x1b5f15DCb82d25f91c65b53CEe151E8b9fBdD271	0 vault roles (confirmed). Fee Splitter governance only

Yearn V3 Infrastructure

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

Active Strategies (15 — 6 funded, 9 at 0 debt)

The strategy set is enumerated by replaying all 45 StrategyChanged events since deployment (block 24,271,831): 15 strategies are currently in the ADDED state and 15 have been REVOKED. Debts and allocations are confirmed onchain via strategies(address).current_debt; the six funded debts sum to 9,119,102.639999 USDC, matching totalDebt() exactly. Withdrawal-queue membership comes from get_default_queue(); withdrawability comes from each strategy's availableWithdrawLimit(vault).

Funded strategies (6)

#	Strategy	Name	Current Debt (USDC)	Allocation	In default queue?	Withdrawable now	Protocols / Venue
1	0x0e297dE4005883C757c9F09fdF7cF1363C20e626	Morpho Yearn OG USDC Compounder	5,688,704.15	62.4%	✅ Yes	Full	Morpho V1 (Yearn OG USDC vault 0xF9bdDd4A9b3A45f980e11fDDE96e16364dDBEc49)
2	0xc5b16E7eFe1CA05714477b8edcAb4deE9b93a27C	Katana yvUSDC Compounder	920,999.82	10.1%	❌ No	~0 (availableWithdrawLimit = 1 wei)	Katana L2 (remote yvUSDC), AggLayer LxLy bridge, VaultBridgeToken
3	0xd362efC75Ef1879f37A900823495f402CfdB0986	stcUSD/USDC Pawn Broker Looper	869,584.70	9.5%	❌ No	Full (requires deleverage)	Cap stcUSD collateral, Pawn Broker Market, Morpho Blue flashloans. 7.90x leverage
4	0xdA2f1B3CBa732d779cfF56f0cF9d3Bc8AEA6Cd8D	USDC To sUSDS Depositor	663,490.08	7.3%	✅ Yes	Full	Sky/MakerDAO (sUSDS 0xa3931d71877C0E7a3148CB7Eb4463524FEc27fbD)
5	0x2dF6c1602528dE8B8A5C72Baf6E70295b3A64142	sUSDS Pendle PT Maxi	575,327.90	6.3%	❌ No	0 (openWithdrawals = false)	Pendle PT-sUSDS-26NOV2026, Sky sUSDS
6	0x62ebE2ca290DB3B649c390847f8204196771B438	USD3 Pendle PT Maxi	400,995.98	4.4%	❌ No	0 (openWithdrawals = false)	Pendle PT-USD3-17DEC2026, 3Jane USD3
		Total	9,119,102.64	100.0%

All six weights are independently reproduced by the yvUSD APR API (meta.strategies[].weight): 0.6238, 0.1010, 0.0954, 0.0728, 0.0631, 0.0440.

Strategies 3, 5, and 6 were all activated on June 26, 2026 — roughly six weeks before this snapshot.

Active but unfunded (9, all at 0 debt)

#	Strategy	Name	In default queue?	Protocols / Venue
7	0x9e0A5943dFc1A85B48C191aa7c10487297aA675b	USDC To Spark USDS Depositor	✅ Yes	Spark, Sky/MakerDAO
8	0x908244B6ef0e52911a380a5454aEC0743598Fb20	Base Yearn Morpho OG USDC	✅ Yes	Base L2, Morpho, CCTP
9	0xF0FEC2602Dff25497D6a14b3113D0687b4c56741	sIUSD/USDC Morpho Looper	✅ Yes	InfiniFi sIUSD, Morpho
10	0x4C0e4d3cB62B91afBbf1Fe8e830f98A513c7234b	USD3 Pendle PT Maxi (legacy)	❌ No	3Jane USD3, Pendle — superseded by strategy #6
11	0x8C8232Bdffc60BAb474CABa0245e63726e85Ce15	wOUSD/USDC Morpho Looper	❌ No	Origin wOUSD, Morpho. Added June 26, 2026, never funded
12	0xF28DC8B6DeD7E45F8cf84B9972487C8e1857A442	syrupUSDC/USDC Morpho Looper	❌ No	Maple syrupUSDC, Morpho
13	0x2F56D106C6Df739bdbb777C2feE79FFaED88D179	Arbitrum syrupUSDC/USDC Morpho Looper	❌ No	Maple syrupUSDC, Morpho, CCTP (Arbitrum)
14	0x3D2467Cbf82332dbFb38997cBc4D2192694D9490	Morpho V2 Sentora PYUSD Convertor	❌ No	Morpho V2, Sentora, PYUSD
15	0xE0be46Cc5aD2F56a7734A99FF403781b9c54C7B2	Morpho V2 Sentora RLUSD Convertor	❌ No	Morpho V2, Sentora, RLUSD

These 9 remain endorsed and can be re-funded by the Debt Allocator without a new timelock proposal, so their risk surfaces (convertor auctions, CCTP lanes, additional loopers) are dormant rather than removed.

Revoked (15)

Revoked strategies require a fresh 7-day timelock proposal to be re-added. Notably, several strategies previously described as merely "idle" are in fact revoked:

Strategy	Name
0x00C8a649C9837523ebb406Ceb17a6378Ab5C74cF	USDC Fluid Lender
0x48E66D65006007ef62B50735D070fc30d0242a93	USDC To SKY USDS Depositor
0x5f9DBa2805411a8382FDb4E69d4f2Da8EFaF1F89	Infinifi sIUSD Morpho Looper
0x7bf1D269bf2CB79E628F51B93763B342fd059D1D	PT stcUSD Jul 23 Morpho Looper
0xb44EE7869b9D47cd605B05022c8Bd8612EBe53EE	sUSD3 Compounder
0xBc65ad17c5C0a2A4D159fa5a503f4992c7B545FE	Spark USDC Vault
0x1b88F199d42F2114dE341C5b68E9c92aF1c271ee	USDC To sUSDS Depositor (v1)
0x7130570BCEfCedBe9d15B5b11A33006156460f8f	USDC to sUSDS Lender
0xb68f759eFa587a83E59B094CA1eC982D5ea97581	PT siUSD March 25 Morpho Looper
0xB73a2f9f57aAA125aDE3A11a1E661d28A919C66d	PT siUSD March 25 Morpho Looper (v2)
0xEa1F78458cD7FB4225CD239506EfaD4237b12dab	Arbitrum PT sUSDai Feb 18 Morpho Looper
0x1983923e5a3591AFe036d38A8C8011e66Cd76e9E	Arbitrum Yearn Degen Morpho Compounder
0x59B6C75Eeb7dfe417505919C3E5A919b7C1b0773	syrupUSDC/USDC Morpho Looper (v1)
0x7E71d8a63cA904F832Ed35B39911f7EEC36c8928	sUSDe/USDT Aave Looper Convertor
0xdA29b5ddc82F968cd75Ee69ff51A47D940318Ebe	jrUSDe Convertor

Default withdrawal queue

get_default_queue() returns 5 strategies, only 2 of which are funded:

1. 0xdA2f1B3C… USDC To sUSDS Depositor — 7.3% funded
2. 0x9e0A5943… USDC To Spark USDS Depositor — 0 debt
3. 0x0e297dE4… Morpho Yearn OG USDC Compounder — 62.4% funded
4. 0x908244B6… Base Yearn Morpho OG USDC — 0 debt
5. 0xF0FEC260… sIUSD/USDC Morpho Looper — 0 debt

Consequence: only 69.7% of TVL (Morpho OG 62.4% + sUSDS 7.3%) is reachable by a standard withdraw()/redeem() call. The remaining 30.3% — Katana (10.1%), Pawn Broker Looper (9.5%), and the two Pendle PT strategies (10.7%) — sits outside the default queue and requires either a targeted redeem(uint256,address,address,uint256) with an explicit strategy list, a bridge round-trip, or (for the PT positions) governance action.

This gap is more than covered by the locked supply. ~33.8% of yvUSD sits in LockedyvUSD behind a 14-day cooldown, which exceeds the 30.3% held outside the default queue. Redemptions from unlocked holders draw against the 69.7% liquid tranche, and the locked cohort cannot exit without at least 14 days' notice — enough time to unwind the bridged, levered, or PT positions in an orderly way. The queue composition is therefore a monitoring item rather than a live redemption risk at current lock levels. See Liquidity Risk.

Strategy Protocol Dependencies with Existing Reports

Several underlying protocols have been previously assessed in this repository:

Protocol	Report Score	yvUSD Allocation
Cap (stcUSD)	2.4/5 (Low Risk)	9.5% equity — ~$6.87M stcUSD collateral notional at 7.90x leverage
3Jane USD3	3.4/5 (Medium Risk)	4.4% via PT-USD3-17DEC2026
Sky USDS	1.3/5 (Minimal Risk)	13.6% — 7.3% direct sUSDS + 6.3% via PT-sUSDS-26NOV2026
Yearn yvUSDC-1	1.5/5 (Minimal Risk)	Counterparty — yvUSDC-1 funds the Pawn Broker Market this vault borrows from
Spectra	2.33/5 (Low Risk)	0% — PT infrastructure only
InfiniFi	3.2/5 (Medium Risk)	0% (active, unfunded)
Maple syrupUSDC	2.33/5 (Low Risk)	0% (active, unfunded)
Fluid	2.6/5 (Medium Risk)	0% (revoked)

Underlying venues without an existing repository report — Morpho V1 (62.4%), Katana L2 + AggLayer LxLy bridge (10.1%), and Pendle (10.7% of TVL held as PTs) — are assessed inline in this report and flagged as uncovered-dependency risk.

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 KatanaStrategy, the Pawn Broker Looper, the Pendle PT Maxi strategies, or the LockedyvUSD cooldown wrapper was found. The CCTPStrategy has undergone strict internal review by ySec (Yearn's security team), and all strategies go through Yearn's internal review process (see below). The three highest-complexity funded strategies — the 7.9x leveraged Pawn Broker Looper and the two PT Maxi strategies — were activated on June 26, 2026 and have ~6 weeks of production history with no dedicated external audit.

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 — offchain 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 offchain)

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 (V1)	25+ audits (Trail of Bits, Spearbit, OpenZeppelin, ChainSecurity, Certora)	Formal verification by Certora. The Yearn OG USDC vault is rated low-mid risk. 62.4% of TVL. Morpho Blue is also the flashloan venue for the Pawn Broker Looper
Pendle	6+ audits (Ackee, Dedaub, ChainSecurity, Spearbit, Code4rena)	Well-established. 10.7% of TVL now held as fixed-maturity PTs (Nov 26 and Dec 17, 2026)
Cap (stcUSD)	8 audit firms / 9 reports (Trail of Bits, Spearbit, Zellic, Electisec, Certora), $1M Sherlock bug bounty	9.5% of TVL as equity, ~$6.87M collateral notional at 7.90x leverage. Assessed internally at 2.4/5.0. Governance is a 3-of-5 anonymous multisig → 24h timelock, all core contracts upgradeable UUPS proxies
Sky/MakerDAO	Extensively audited across many years	Blue-chip. 13.6% combined (7.3% direct sUSDS + 6.3% via PT-sUSDS)
3Jane (USD3)	See 3Jane USD3 report (3.4/5)	4.4% via PT-USD3. Credit-based lending, medium risk
Polygon AggLayer (LxLy) + VaultBridgeToken	AggLayer/zkEVM bridge audited; VaultBridgeToken wrapper is newer infrastructure	~10.1% Katana exposure. Katana is a young (2025) L2; bridge + wrapper not yet covered by an existing repo report — flagged as novel
Circle CCTP	ChainSecurity (V1 2023, V2 March 2025, V2 update April 2025, Gateway July 2025)	Trust-minimized bridge (Arbitrum/Base — CCTP strategies active but at 0 debt)
Spark	Inherits MakerDAO audit coverage	Blue-chip (active, 0 debt)

Bug Bounty

• Immunefi: Active bug bounty for Yearn Finance. Max payout: $200,000 (Critical). Scope includes V3 vaults (VaultV3.vy, VaultFactory.vy).
  • Link: https://immunefi.com/bounty/yearnfinance/
• Sherlock: Also listed: https://audits.sherlock.xyz/bug-bounties/30
• Safe Harbor: Not listed on the SEAL Safe Harbor registry

On-Chain Complexity

• 15 active strategies (6 funded) spanning up to 3 chains (Ethereum + Katana + Base; Arbitrum strategy active but unfunded)
• One cross-chain mechanism with active debt: the Polygon AggLayer LxLy bridge + VaultBridgeToken (Katana, ~10.1%); CCTP strategies (Arbitrum, Base) are at 0 debt
• One leveraged looper funded at 7.90x (Pawn Broker Looper, 9.5% of TVL) — flashloan-assisted, with liquidation risk, a reportBuffer parameter, and slippage/loss-limit controls
• Two fixed-maturity Pendle PT positions (10.7% of TVL) valued through a Pendle oracle and currently non-withdrawable
• Convertor strategies dormant, not removed — the Morpho V2 Sentora PYUSD/RLUSD convertors remain active at 0 debt and can be re-funded by the Debt Allocator without a timelock
• Custom accountant (LockedyvUSD) combining cooldown/locking mechanics with fee management
• Inter-vault coupling — the Pawn Broker Looper's USDC is borrowed from the Pawn Broker Market, which is itself a funded strategy of yvUSDC-1
• V3 vault itself is non-upgradeable (immutable Vyper minimal proxy)

Historical Track Record

• Vault deployed: January 19, 2026 (block 24271831) — ~201 days in production
• TVL: ~$9.12M USDC. Deposit limit: $15M (~60.8% utilized)
• PPS trend: 1.000000 → 1.023168 — ~2.32% appreciation since inception, ~4.2% annualized; no PPS decrease observed
• Security incidents: None known for this vault or Yearn V3 generally
• Strategy changes: 45 StrategyChanged events over ~201 days — 15 additions currently active, 15 revocations. The portfolio has turned over aggressively: on June 26, 2026 four new strategies were added (Pawn Broker Looper, sUSDS PT Maxi, USD3 PT Maxi, wOUSD Morpho Looper), of which three are now funded at a combined 20.2% of TVL. The Morpho V1 OG position was simultaneously reduced. The Morpho V2 Sentora convertors and the Arbitrum syrupUSDC looper were de-funded but remain active
• Governance: Standard Yearn RoleManager, 7-day timelock (getMinDelay() = 604,800 s), Daddy bitmask 0x3FF6, no pending future_role_manager, vault not shut down
• Yearn V3 track record: V3 framework has been live since May 2024 (~27 months). No V3 vault exploits

Yearn protocol TVL: ~$177M total across all chains (DeFi Llama, August 2026).

Funds Management

yvUSD deploys deposited USDC across 15 active strategies (6 funded) with 100% capital utilization (0 idle). The funded book falls into five categories.

Strategy Positions by Category

1. Morpho V1 Lending — mainnet (62.4% of TVL)

• Morpho Yearn OG USDC Compounder (62.4%, $5,688,704) — deposits USDC into the Yearn-curated Morpho V1 "Yearn OG USDC" vault (0xF9bdDd4A9b3A45f980e11fDDE96e16364dDBEc49). Unleveraged lending compounder. 25+ audits with formal verification by Certora. The Yearn OG USDC vault is rated low-mid risk.

Lending risk: Morpho V1 has 25+ audits and formal verification, but the Yearn OG USDC vault is rated low-mid risk, not blue-chip. The vault is unleveraged and curated. This remains the single largest position and the single largest point of failure.

2. Cross-Chain Compounder — Katana (10.1% of TVL)

• Katana yvUSDC Compounder (10.1%, $920,999) — wraps USDC into a VaultBridgeToken (0x53E82ABbb12638F09d9e624578ccB666217a765e) and bridges to Katana L2 (AggLayer network ID 20) via the Polygon AggLayer LxLy unified bridge, where a remote counterpart deposits into a Yearn yvUSDC vault. This is the only active cross-chain position with material debt.

Cross-chain risk: Novel dependency stack — a young (2025) L2, the AggLayer/LxLy bridge, the VaultBridgeToken wrapper, and a remote Yearn vault — none of which have an existing repository report. The strategy's availableWithdrawLimit() reads 1 wei, so this slice is effectively non-withdrawable on demand; exiting requires a bridge round-trip and claim. The local valueOfVault() reads 0 between bridge reports, so ~10% of TVL is known to the origin only via on-chain bridge messages.

3. Leveraged stcUSD Carry — Pawn Broker Looper (9.5% of TVL)

• stcUSD/USDC Pawn Broker Looper (9.5%, $869,585 equity) — posts stcUSD (0x88887bE419578051FF9F4eb6C858A951921D8888, Cap's staked-USD ERC-4626 token) as collateral into the stcUSD/USDC Pawn Broker Market (0xe63A2aBC24cD9538398d825a4bFe5778D25687dF) and borrows USDC against it, using Morpho Blue flashloans to build the position.

Onchain state at the snapshot:

Metric	Value
balanceOfCollateral()	6,392,939.74 stcUSD (~$6.87M)
balanceOfDebt()	5,997,837 USDC
Net equity (totalAssets())	869,328 USDC
getCurrentLeverageRatio()	7.90x (target 8.00x, max 8.50x)
getCurrentLTV()	87.34%
getLiquidateCollateralFactor()	91.50%
Headroom to liquidation	~4.5% decline in stcUSD/USDC

Leverage risk: This is the vault's highest-risk position by a wide margin. A ~4.5% adverse move in the stcUSD/USDC price — a Cap depeg, a reserve loss, an operator default, or an oracle disagreement — would push the position into liquidation and can wipe out most or all of the 9.5% equity. Cap governs stcUSD through a 3-of-5 anonymous Gnosis Safe multisig → 24h timelock, with all core contracts on upgradeable UUPS proxies (see the Cap stcUSD report, 2.4/5.0). The position was opened only ~6 weeks before this snapshot.

Inter-vault coupling: the Pawn Broker Market held $6,170,257 of total assets at the snapshot, of which this strategy has borrowed $5,997,837 — ~97%. The Market is itself a funded strategy of yvUSDC-1 (~14.9% of that vault). yvUSD's leveraged borrower is therefore effectively the sole counterparty to a material yvUSDC-1 position, and the two vaults' risk is correlated through a single Cap-collateralised credit book.

4. Sky Lending (7.3% direct, 13.6% including PT)

• USDC To sUSDS Depositor (7.3%, $663,490) — deposits into Sky/MakerDAO Savings USDS (sUSDS, 0xa3931d71877C0E7a3148CB7Eb4463524FEc27fbD)

Lending risk: Standard DeFi lending risk. Sky is blue-chip with extensive audit coverage and deep liquidity. Combined with the sUSDS PT position below, total Sky exposure is 13.6%.

5. Pendle Principal Tokens (10.7% of TVL)

Strategy	Allocation	Principal Token	Maturity	Underlying
sUSDS Pendle PT Maxi	6.3%	PT-sUSDS-26NOV2026	Nov 26, 2026	Sky sUSDS
USD3 Pendle PT Maxi	4.4%	PT-USD3-17DEC2026	Dec 17, 2026	3Jane USD3 (3.4/5)

PT risk: Both strategies report openWithdrawals() = false and availableWithdrawLimit(vault) = 0 — the vault cannot withdraw any value from these positions at the snapshot. They are duration-locked to maturity (~110 and ~131 days out) unless governance flips the flag, in which case exit runs through the Pendle router at up to 50 bps configured slippage (swapSlippageBPS = 50). PT prices trade at a discount to face value and are exposed to interest-rate and underlying-protocol risk before maturity. Valuation flows through a strategy-configured Pendle oracle (0x5542be50420E88dd7D5B4a3D488FA6ED82F6DAc2), reintroducing an oracle-valued surface that was absent at the prior snapshot. The USD3 leg additionally carries 3Jane credit risk (report score 3.4/5, medium).

Accessibility

• Deposits: Permissionless — anyone can deposit USDC and receive yvUSD (ERC-4626 standard). Subject to the $15M deposit limit (deposit_limit confirmed onchain; deposit_limit_module = address(0), so the hard cap is the direct limit)
• Withdrawals: ERC-4626 standard, but materially constrained:
  • 100% of funds are deployed (0 idle) — withdrawals require unwinding strategy positions
  • Only 69.7% of TVL sits in the default withdrawal queue and is immediately withdrawable (Morpho OG 62.4% + sUSDS 7.3%)
  • 10.7% (Pendle PT) has zero withdrawal availability — availableWithdrawLimit() returns 0
  • 10.1% (Katana) requires an AggLayer/LxLy bridge round-trip and claim
  • 9.5% (Pawn Broker Looper) is fully withdrawable in principle but is outside the default queue and requires unwinding a 7.9x levered position via flashloan
• LockedyvUSD: Optional lock wrapper with 14-day cooldown + 5-day withdrawal window. Yields a 10% locker bonus but restricts exit timing. ~33.8% of yvUSD supply is locked (LockedyvUSD holds 3,008,265 of 8,912,607 yvUSD) — a committed-duration buffer reducing immediate redemption pressure
• No fees on deposits/withdrawals — the APR oracle currently reports 0 management/performance fee; the locker bonus is funded from extra yield via the accountant

Collateralization

• 100% USDC-denominated — all deposits are USDC, and all strategy positions ultimately track back to USDC value
• Collateral quality by strategy:
  • Low-mid risk (Morpho V1 OG 62.4%): dominant position
  • Blue-chip (Sky sUSDS 7.3% direct + 6.3% via PT = 13.6%)
  • Cross-chain (Katana yvUSDC via AggLayer): 10.1%, novel stack
  • Levered Cap stcUSD (Pawn Broker Looper): 9.5% equity on ~$6.87M notional
  • Credit-based (3Jane USD3 via PT): 4.4%
• Leverage: 7.90x on 9.5% of TVL — the Pawn Broker Looper runs at 87.34% LTV against a 91.50% liquidation threshold, ~4.5% of headroom. Gross levered notional is ~$6.87M against $869K of vault equity, i.e. ~75% of total vault TVL in gross collateral terms
• Duration risk: 10.7% of TVL is in fixed-maturity PTs that cannot currently be redeemed before Nov 26 / Dec 17, 2026
• Concentration risk: The portfolio is less concentrated than at the prior snapshot (Morpho V1 OG down from ~77% to 62.4%), but the diversification was achieved by adding a levered position, two duration-locked PT positions, and two additional protocol dependencies (Cap, 3Jane) rather than by moving into blue-chip venues

Provability

• yvUSD exchange rate: Calculated onchain via ERC-4626 standard (convertToAssets()/convertToShares()). Fully programmatic, no admin input
• Strategy positions: Each strategy's totalAssets() is onchain, and the six funded current_debt values reconcile exactly with totalDebt() (9,119,102.639999 USDC)
• Oracle-valued positions: The two Pendle PT strategies (10.7%) value their holdings through a strategy-configured Pendle oracle (0x5542be50…); the Pawn Broker Looper exposes a reportBuffer parameter (currently 1) and slippage/loss-limit controls. These are management-configurable valuation surfaces
• Cross-chain lag: Only the Katana strategy (10.1%) has cross-chain lag. The local valueOfVault() reads 0 between bridge reports, so this slice is known to the origin only via the last on-chain AggLayer bridged message. CCTP strategies (Arbitrum, Base) are at 0 debt
• Levered position verifiability: The Pawn Broker Looper's collateral, debt, LTV, and leverage ratio are all directly readable onchain (balanceOfCollateral(), balanceOfDebt(), getCurrentLTV(), getCurrentLeverageRatio()) — good transparency, but the stcUSD collateral itself sits behind Cap's upgradeable proxies
• Profit/loss reporting: Profits are reported by keepers via process_report() and locked for gradual distribution over 5 days (profitMaxUnlockTime = 432,000 s). Losses are immediately reflected in PPS

Liquidity Risk

• Primary exit: Redeem yvUSD for USDC via ERC-4626 withdraw()/redeem(). Subject to strategy liquidity and to default-queue membership
• Zero idle funds: 100% of vault assets are deployed. Withdrawals require unwinding positions
• Withdrawability by tier (verified via availableWithdrawLimit(vault) and get_default_queue()):

Tier	Share of TVL	Positions	Exit path
Immediately withdrawable via default queue	69.7%	Morpho V1 OG (62.4%), Sky sUSDS (7.3%)	Standard redeem()
Withdrawable, but out of queue	9.5%	Pawn Broker Looper	Targeted redeem() with explicit strategy list; requires flashloan deleverage of a 7.9x position
Bridge round-trip required	10.1%	Katana yvUSDC	AggLayer/LxLy claim; availableWithdrawLimit = 1 wei locally
Not withdrawable at all	10.7%	sUSDS PT Maxi (6.3%), USD3 PT Maxi (4.4%)	availableWithdrawLimit = 0, openWithdrawals = false. Locked until Nov 26 / Dec 17, 2026 maturity or governance action

• Sequencing risk: because the default queue draws from the Morpho OG position first, sustained redemptions would drain the liquid 69.7% and progressively raise the share of remaining TVL held in levered, bridged, and duration-locked positions — the residual holders would end up in a strictly riskier book
• 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. ~33.8% of yvUSD supply is locked here — a committed-duration buffer that materially reduces immediate redemption pressure and is the main mitigant for the illiquid tail
• Same-value asset: USDC-denominated vault token — no price divergence risk from the underlying
• Deposit limit: $15M cap (~60.8% utilized)
• Net: ~69.7% of TVL is withdrawable through the normal path, and 62.4% of that sits in a low-mid risk Morpho V1 vault rather than a blue-chip venue. ~30.3% requires non-standard exit — including 10.7% that is hard-locked for roughly four months. The ~33.8% locked-supply buffer covers a large share of that illiquid tail, but the mismatch between the liquid queue and the funded book is the vault's most significant liquidity weakness

Centralization & Control Risks

Governance

The yvUSD vault uses the standard Yearn V3 governance pattern via the Yearn V3 Role Manager contract (0xb3bd6B2E61753C311EFbCF0111f75D29706D9a41). This is the same governance framework used by yvUSDC-1 and 37+ other Yearn vaults.

Governance hierarchy:

Position	Address	Threshold	Roles on Vault
Daddy (ySafe)	0xFEB4acf3df3cDEA7399794D0869ef76A6EfAff52	6-of-9	Nearly all roles (bitmask 0x3FF6). Sole PROPOSER on timelock; also EXECUTOR and CANCELLER (shared — see Appendix)
Brain	0x16388463d60FFE0661Cf7F1f31a7D658aC790ff7	3-of-8	Operational roles (bitmask 0x3972) — REVOKE_STRATEGY, QUEUE, REPORTING, DEBT, DEPOSIT_LIMIT, PROFIT_UNLOCK, DEBT_PURCHASER, EMERGENCY. CANCELLER on timelock. Also management on all funded strategies
Security	0xe5e2BAf96198c56380DDd5e992D7d1adA0E989C0	4-of-7	DEBT_MANAGER, MAX_DEBT_MANAGER, EMERGENCY_MANAGER (bitmask 0x20C0)
Strategy Manager (Timelock)	0x88ba032be87d5eF1FbE87336b7090767f367bF73	7-day delay	ADD_STRATEGY, REVOKE_STRATEGY, FORCE_REVOKE, ACCOUNTANT, MAX_DEBT (bitmask 0x8F). DEFAULT_ADMIN never granted. Timelock holds TIMELOCK_ADMIN_ROLE — config changes require 7-day delay
Keeper	0x604e586F17cE106B64185a7A0d2c1DA5BaCe711e	Bot	REPORTING_MANAGER
Debt Allocator	0x1E9eB053228B1156831759401DE0E115356b8671	Bot	REPORTING_MANAGER + DEBT_MANAGER

Daddy (ySafe) 6-of-9 multisig signers include publicly known contributors: Mariano Conti (ex-MakerDAO), Leo Cheng (C.R.E.A.M.), 0xngmi (DeFiLlama), Michael Egorov (Curve), and others (source).

Governance assessment:

1. Standard Yearn governance — same setup used across 37+ vaults (including yvUSDC-1), battle-tested pattern
2. No EOA role concentration — deployer EOA has 0 vault roles (confirmed). All vault operations require multisig or contract authorization
3. 7-day timelock with locked-down role structure — strategy additions and other critical operations go through the TimelockController. The timelock roles are tightly controlled:
   • PROPOSER: Daddy (6/9) only — no one else can initiate timelocked operations
   • EXECUTOR: Daddy (6/9) + TimelockExecutor contract (governed by Brain, internal executors: Brain + Deployer EOA)
   • CANCELLER: Daddy (6/9) + Brain (3/8)
   • TIMELOCK_ADMIN_ROLE: held only by the timelock contract itself — not by Daddy, Brain, or any EOA. Config changes (delay, role grants) must go through the 7-day delay
   • DEFAULT_ADMIN_ROLE: never granted (admin = address(0) at construction). No one can grant or revoke timelock roles outside the normal propose→wait→execute flow
4. Immutable vault — no proxy upgrades possible
5. Multi-layer security — Daddy (governance), Brain (operations), Security (emergency), and automated bots (Keeper, Debt Allocator) with differentiated responsibilities

Operational latitude within governance: the 7-day timelock gates adding strategies, but the Debt Allocator and DEBT_MANAGER holders can re-fund any of the 9 active-but-unfunded strategies (including the Morpho V2 Sentora convertors, the CCTP lanes, and two further loopers) with no delay. Brain (3-of-8) holds management on the funded strategies, and therefore controls the PT strategies' openWithdrawals flag and the looper's leverage targets and reportBuffer.

Remaining concern: The deployer EOA (0x1b5f15DCb82d25f91c65b53CEe151E8b9fBdD271) remains the sole governance address on the Fee Splitter contract (0xd744B7D6bE69b334766802245Db2895e861cb470). This is a low-impact concern (fee distribution only, not fund custody) but deviates from the otherwise robust multi-sig governance pattern.

Programmability

• Exchange rate (PPS): Calculated onchain algorithmically via ERC-4626. Fully programmatic, no admin input
• Vault operations: Deposit/withdraw are permissionless onchain transactions
• Strategy profit/loss: Reported programmatically by keepers via process_report(). Profits unlock linearly over 5 days. Losses are immediate
• Debt allocation: Automated via Debt Allocator contract, with manual override available to DEBT_MANAGER role holders (Daddy, Brain, Security)
• PT valuation: The two PT Maxi strategies (10.7%) mark their holdings through a strategy-configured Pendle oracle and expose management-set swapSlippageBPS (50) and openWithdrawals parameters. openWithdrawals = false means management, not the market, currently determines whether the vault can exit these positions
• Looper parameterization: The Pawn Broker Looper exposes targetLeverageRatio (8.0x), maxLeverageRatio (8.5x), leverageBuffer, slippage, lossLimitRatio, and reportBuffer — all management-configurable and all affecting reported value and liquidation proximity
• Cross-chain accounting: Remote _harvestAndReport() queues a report back to the origin — via the AggLayer LxLy onMessageReceived callback for Katana (10.1% of TVL). The Katana strategy's local valueOfVault() reads 0 between bridge reports
• V3 vaults are immutable — no proxy upgrades, no admin-changeable implementation

External Dependencies

Dependency	Criticality	Allocation	Notes
Morpho (V1)	Critical	62.4%	25+ audits, formal verification by Certora. The Yearn OG USDC vault is rated low-mid risk. Unleveraged. Largest single point of failure. Morpho Blue also provides looper flashloans
Sky/MakerDAO	High	13.6%	7.3% direct sUSDS + 6.3% via PT-sUSDS. Blue-chip, extensively audited (report 1.3/5)
Katana L2 + AggLayer (LxLy) + VaultBridgeToken	Critical	10.1%	Newer stack — young (2025) L2, AggLayer bridge, no existing repo report. Effectively non-withdrawable without a bridge round-trip
Pendle	Critical	10.7%	Fixed-maturity PTs (Nov 26 / Dec 17, 2026). Oracle-valued, currently non-withdrawable. 6+ audits, $2B+ TVL
Cap (stcUSD)	Critical	9.5% equity / ~$6.87M notional	Report 2.4/5. 3-of-5 anonymous multisig, upgradeable UUPS proxies, 24h timelock. Levered 7.9x with ~4.5% liquidation headroom
3Jane (USD3)	High	4.4%	Report 3.4/5, medium-risk credit-based lending, held via PT until Dec 17, 2026
yvUSDC-1 / Pawn Broker Market	High	Counterparty	The looper's $6.0M USDC borrow is ~97% of the Market's book; the Market is a 14.9% strategy of yvUSDC-1
Circle CCTP / Spark / Maple / InfiniFi / Origin	Low	0% (active, unfunded)	Endorsed and re-fundable by the Debt Allocator without a timelock

Dependency concentration: Morpho V1 concentration has fallen from ~77% to 62.4%, which is a genuine improvement in single-point-of-failure terms. However, the redeployed 20.2% went into a 7.9x levered Cap position (9.5%) and two duration-locked Pendle PT positions (10.7%), adding Cap (2.4/5, anonymous multisig, upgradeable) and 3Jane (3.4/5, credit risk) as new material dependencies and creating a correlated counterparty relationship with yvUSDC-1. Genuinely blue-chip exposure is 13.6% (Sky). Net: concentration improved, dependency quality and liquidity worsened.

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: Standard Yearn V3 Role Manager — the same governance used across 37+ vaults, with clear role separation (Daddy, Brain, Security, Keeper, Debt Allocator). 7-day timelock on critical operations
• Documentation: Comprehensive Yearn V3 documentation. yvUSD-specific docs are 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
• Active management intensity: 45 strategy changes in ~201 days, with four strategies added and the allocation profile materially reshaped on a single day (June 26, 2026). This is a fast-moving book — point-in-time assessments age quickly
• 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 repository:

• Large flow alerts (protocols/yearn/alert_large_flows.py): Monitors deposit/withdrawal events via indexer, alerts on flows exceeding $5M threshold via Telegram. Currently monitors 21 vaults across Ethereum, Base, Arbitrum, and Katana
• Endorsed vault check (protocols/yearn/check_endorsed.py): Runs daily, verifies all Yearn V3 vaults are endorsed onchain via the registry contract
• Timelock monitoring (protocols/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 onchain vault/strategy accounting with offchain APR oracle computations. Endpoints include /api/health (data recency), /api/aprs (precomputed APRs and per-strategy debts/weights), 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(), get_default_queue(), Deposit/Withdraw events
Pawn Broker Looper	0xd362efC75Ef1879f37A900823495f402CfdB0986	getCurrentLTV(), getCurrentLeverageRatio(), getLiquidateCollateralFactor(), balanceOfCollateral(), balanceOfDebt(), reportBuffer() — alert on LTV > 89%
sUSDS Pendle PT Maxi	0x2dF6c1602528dE8B8A5C72Baf6E70295b3A64142	openWithdrawals(), availableWithdrawLimit(), balanceOfPT(), PT maturity (Nov 26, 2026)
USD3 Pendle PT Maxi	0x62ebE2ca290DB3B649c390847f8204196771B438	openWithdrawals(), availableWithdrawLimit(), balanceOfPT(), PT maturity (Dec 17, 2026)
Katana yvUSDC Compounder	0xc5b16E7eFe1CA05714477b8edcAb4deE9b93a27C	Remote-asset staleness, availableWithdrawLimit(), bridge message receipt
stcUSD (Cap) Vault	0x88887bE419578051FF9F4eb6C858A951921D8888	PPS (convertToAssets(1e18)), ERC-1967 implementation slot (upgradeable UUPS proxy), Cap multisig/timelock activity
Pawn Broker Market	0xe63A2aBC24cD9538398d825a4bFe5778D25687dF	totalAssets(), idle USDC — shared counterparty with yvUSDC-1
LockedyvUSD	0xAaaFEa48472f77563961Cdb53291DEDfB46F9040	Cooldown events, configuration changes, yvUSD.balanceOf() (locked share of supply)
Strategy Manager (Timelock)	0x88ba032be87d5eF1FbE87336b7090767f367bF73	Pending operations, MinDelayChange events, role grants/revocations
Daddy / ySafe	0xFEB4acf3df3cDEA7399794D0869ef76A6EfAff52	Signer/threshold changes, submitted transactions
Brain	0x16388463d60FFE0661Cf7F1f31a7D658aC790ff7	Signer/threshold changes, submitted transactions, strategy management actions
Deployer EOA	0x1b5f15DCb82d25f91c65b53CEe151E8b9fBdD271	Fee Splitter governance changes only (0 vault roles)
Fee Splitter	0xd744B7D6bE69b334766802245Db2895e861cb470	Governance changes, fee distribution changes

Critical Events to Monitor

• Pawn Broker Looper LTV — the single most time-critical metric. Alert if getCurrentLTV() exceeds ~89% (against the 91.5% liquidation threshold) or if getCurrentLeverageRatio() approaches maxLeverageRatio (8.5x)
• stcUSD price and Cap governance — stcUSD is the looper's collateral. Monitor stcUSD PPS, ERC-1967 implementation upgrades, and Cap 3-of-5 multisig / 24h timelock activity. A Cap incident propagates directly into a levered yvUSD position
• PT withdrawal availability — track openWithdrawals() and availableWithdrawLimit() on both PT Maxi strategies, and the Nov 26 / Dec 17, 2026 maturities. While false/0, 10.7% of TVL cannot be redeemed
• Default queue composition — get_default_queue() currently covers only 69.7% of funded debt. Alert on any change, and on any funded strategy that is not in the queue
• PPS decrease — any decrease in convertToAssets(1e6) indicates a loss event. Should only increase
• Strategy additions/removals — StrategyChanged events indicate portfolio changes (new strategies go through 7-day timelock; re-funding an existing one does not)
• Debt allocation changes — UpdatedMaxDebtForStrategy and DebtUpdated events, especially any re-funding of the 9 active-but-unfunded strategies (convertors, CCTP lanes, syrupUSDC/sIUSD/wOUSD loopers)
• Emergency actions — Shutdown event on vault
• Timelock operations — pending proposals on the TimelockController
• Signer/threshold changes on the Daddy (6-of-9) and Brain (3-of-8) Safes
• Cross-chain strategy accounting — monitor remote-asset staleness for Katana (AggLayer/LxLy, 10.1%); the strategy's local valueOfVault() reads 0, so verify against actual Katana-side positions
• Pawn Broker Market utilization — the looper is ~97% of the Market's book, and the Market is a yvUSDC-1 strategy. Monitor for correlated stress across both vaults
• Underlying protocol health — Morpho V1 (critical, 62.4%), Sky (13.6%), Pendle (10.7%), Cap (9.5% levered), 3Jane (4.4%), and the Katana/AggLayer bridge

Monitoring Functions

Function	Contract	Purpose	Frequency
getCurrentLTV() / getCurrentLeverageRatio()	Pawn Broker Looper	Liquidation proximity	Hourly
convertToAssets(1e18)	stcUSD (Cap)	Collateral price	Hourly
convertToAssets(1e6)	Vault	PPS tracking	Every 6 hours
availableWithdrawLimit(vault)	Each funded strategy	Real withdrawability	Daily
totalAssets()	Vault	Total TVL	Daily
totalDebt() / totalIdle()	Vault	Capital deployment ratio	Daily
strategies(address)	Vault	Per-strategy debt, last report time	Daily
openWithdrawals()	PT Maxi strategies	PT exit availability	Daily
get_default_queue()	Vault	Withdrawal queue composition	Daily
getThreshold() / getOwners()	ySafe	Governance integrity	Weekly
getMinDelay()	Timelock	Delay change detection	Weekly

Reassessment Triggers

• Time-based: Reassess in ~1 month (September 2026) given the ~6-week age of the levered and PT positions, and again at the PT maturities (Nov 26 / Dec 17, 2026)
• Leverage-based: Reassess immediately if the Pawn Broker Looper's getCurrentLTV() exceeds 89%, if getCurrentLeverageRatio() approaches 8.5x, if targetLeverageRatio is raised, or if the position's share of TVL exceeds 15%
• Cap-based: Reassess on any stcUSD implementation upgrade, Cap multisig/threshold change, stcUSD depeg beyond 1%, or a change to the Cap stcUSD report score
• Liquidity-based: Reassess if the share of TVL outside get_default_queue() exceeds 35%, if availableWithdrawLimit() on any funded strategy falls to 0, or if openWithdrawals is flipped on either PT strategy
• TVL-based: Reassess if TVL exceeds $20M, or changes by more than ±50%
• Incident-based: Reassess after any exploit, strategy loss, or underlying protocol incident — especially Morpho V1, Cap, Pendle, 3Jane, the AggLayer/Katana bridge, or Sky
• Governance-based: Reassess if the timelock delay is modified, Safe compositions change (signer/threshold), or the Fee Splitter governance is transferred from the deployer EOA to the multisig
• Cross-chain-based: Reassess if cross-chain exposure exceeds ~20% of TVL, if a new remote chain/bridge is funded (e.g. the Base or Arbitrum CCTP strategies activate), or if any bridge experiences downtime or a fault
• Audit-based: Reassess if the Pawn Broker Looper, PT Maxi strategies, KatanaStrategy, or CCTPStrategy receive dedicated external audits (should improve the Audits score)
• Strategy-based: Reassess if Morpho V1 concentration exceeds ~75% of TVL, if any of the 9 active-but-unfunded strategies (convertors, CCTP lanes, additional loopers) is re-funded, or if a further leveraged strategy is added
• Counterparty-based: Reassess if the Pawn Broker Market's composition changes materially, or if the yvUSDC-1 report score changes

---

Appendix: Contract Architecture

┌─────────────────────────────────────────────────────────────────────┐
│                         VAULT LAYER                                  │
│                                                                      │
│  ┌───────────────────────┐        ┌──────────────────────────────┐  │
│  │  yvUSD Vault (v3.0.4) │        │  LockedyvUSD                 │  │
│  │  ERC-4626, immutable  │◀───────│  Cooldown wrapper + accountant│  │
│  │  0x696d...6987        │        │  14d cooldown, 5d window     │  │
│  │  TVL ~$9.12M          │        │  ~33.8% of supply locked     │  │
│  │  deposit() / redeem() │        │  0xAaaF...9040               │  │
│  │  totalAssets()        │        └──────────────────────────────┘  │
│  └──────────┬────────────┘                                           │
│             │ 15 active strategies — 6 funded                        │
│             │                                                        │
│  ┌──────────▼──────────────────────────────────────────────────────┐│
│  │  FUNDED STRATEGIES (by allocation)                               ││
│  │                                                                  ││
│  │  ┌─────────────────────────────────────────────────────────┐    ││
│  │  │ MORPHO V1 LENDING (62.4%)              ✅ in queue      │    ││
│  │  │  Morpho Yearn OG USDC Compounder      low-mid risk     │    ││
│  │  └─────────────────────────────────────────────────────────┘    ││
│  │  ┌──────────────────────────┐  ┌────────────────────────────┐  ││
│  │  │ CROSS-CHAIN (10.1%)      │  │ SKY LENDING (7.3%)         │  ││
│  │  │  Katana yvUSDC Compounder│  │  sUSDS Depositor           │  ││
│  │  │  AggLayer LxLy           │  │  (blue-chip)               │  ││
│  │  │  ❌ not in queue, awl≈0  │  │  ✅ in queue               │  ││
│  │  └──────────────────────────┘  └────────────────────────────┘  ││
│  │  ┌──────────────────────────┐  ┌────────────────────────────┐  ││
│  │  │ LEVERAGED (9.5%)         │  │ PENDLE PT (10.7%)          │  ││
│  │  │  stcUSD/USDC Pawn Broker │  │  PT-sUSDS 26NOV26   6.3%   │  ││
│  │  │  Looper — 7.90x, 87.3%   │  │  PT-USD3  17DEC26   4.4%   │  ││
│  │  │  LTV vs 91.5% liq. thr.  │  │  ❌ not in queue           │  ││
│  │  │  ❌ not in queue         │  │  ⛔ availableWithdraw = 0  │  ││
│  │  └──────────────────────────┘  └────────────────────────────┘  ││
│  │                                                                  ││
│  │  Active but unfunded (9, 0 debt): Spark USDS, Base CCTP,        ││
│  │  sIUSD looper, USD3 PT (legacy), wOUSD looper, syrupUSDC        ││
│  │  looper, Arbitrum syrupUSDC (CCTP), Sentora PYUSD/RLUSD         ││
│  │  convertors — all re-fundable without a new timelock            ││
│  └─────────────────────────────────────────────────────────────────┘│
└──────────────────────────────────────────────────────────────────────┘
                                │
                  deposits into underlying protocols / chains
                                │
┌───────────────────────────────▼──────────────────────────────────────┐
│                    UNDERLYING PROTOCOLS / VENUES                       │
│                                                                       │
│  ┌──────────────┐  ┌──────────────┐  ┌──────────────┐               │
│  │  Morpho V1   │  │  Katana L2 + │  │  Sky/MakerDAO│               │
│  │  OG USDC     │  │  AggLayer    │  │  sUSDS       │               │
│  │  low-mid risk│  │  LxLy Bridge │  │  Blue-chip   │               │
│  │  62.4%       │  │  10.1% (new) │  │  13.6% total │               │
│  └──────────────┘  └──────────────┘  └──────────────┘               │
│  ┌──────────────┐  ┌──────────────┐  ┌──────────────┐               │
│  │  Cap stcUSD  │  │  Pendle      │  │  3Jane USD3  │               │
│  │  2.4/5       │  │  PT market   │  │  3.4/5       │               │
│  │  9.5% equity │  │  10.7% held  │  │  4.4% via PT │               │
│  │  ~$6.87M lev.│  │  as PTs      │  │  credit risk │               │
│  └──────┬───────┘  └──────────────┘  └──────────────┘               │
│         │ collateral in                                              │
│  ┌──────▼─────────────────────────┐                                 │
│  │  stcUSD/USDC Pawn Broker Market│  ← also a 14.9% strategy of     │
│  │  0xe63A...87dF  ($6.17M book)  │     yvUSDC-1; yvUSD's looper is │
│  └────────────────────────────────┘     ~97% of its borrowings      │
└───────────────────────────────────────────────────────────────────────┘

Data flow: User deposits USDC → yvUSD vault → strategies deploy to
Morpho V1 (62.4%), Sky sUSDS (7.3% direct), Katana L2 via AggLayer LxLy
(10.1%), a 7.90x levered Cap stcUSD carry via the Pawn Broker Market
(9.5% equity), and Pendle PTs on sUSDS + USD3 (10.7%, non-withdrawable
until Nov/Dec 2026). Only the Morpho V1 and sUSDS legs (69.7%) sit in
the default withdrawal queue. Profits reported by Keeper, locked for
5 days. Optional: user locks yvUSD in LockedyvUSD for a 10% bonus yield
(14d cooldown); ~33.8% of supply is locked.

Appendix: TimelockController Role Structure

TimelockController 0x88ba032be87d5eF1FbE87336b7090767f367bF73 — deployed at block 24,242,692 with admin = address(0).

Timelock Roles

Role	Holder	Type	Notes
DEFAULT_ADMIN	No holder	—	Never granted (admin = address(0) at construction). No one can grant/revoke roles outside the propose→wait→execute flow
TIMELOCK_ADMIN	Timelock itself (0x88ba032be87d5eF1FbE87336b7090767f367bF73)	Contract	Only the timelock can admin its own roles. Config changes (delay, role grants) must go through the 7-day delay
PROPOSER	Daddy/ySafe (0xFEB4acf3df3cDEA7399794D0869ef76A6EfAff52)	6-of-9 Safe	Only proposer — no one else can initiate timelocked operations
EXECUTOR	Daddy/ySafe (0xFEB4acf3df3cDEA7399794D0869ef76A6EfAff52)	6-of-9 Safe	Can execute queued proposals directly
EXECUTOR	TimelockExecutor (0xf8f60bf9456a6e0141149db2dd6f02c60da5779b)	Contract	Wrapper contract — delegates execution to its internal executor list (see below)
CANCELLER	Daddy/ySafe (0xFEB4acf3df3cDEA7399794D0869ef76A6EfAff52)	6-of-9 Safe	Can cancel pending proposals
CANCELLER	Brain (0x16388463d60FFE0661Cf7F1f31a7D658aC790ff7)	3-of-8 Safe	Can cancel pending proposals

TimelockExecutor Contract

0xf8f60bf9456a6e0141149db2dd6f02c60da5779b — governance-gated wrapper around the TimelockController. Only addresses on its internal executor list can call execute() through it.

Parameter	Value
Governance	Brain (0x16388463d60FFE0661Cf7F1f31a7D658aC790ff7) — only Brain can add/remove internal executors
Internal executor 1	Brain (0x16388463d60FFE0661Cf7F1f31a7D658aC790ff7)
Internal executor 2	Deployer EOA (0x1b5f15DCb82d25f91c65b53CEe151E8b9fBdD271)

Execution Paths for Queued Proposals

All paths require Daddy (6/9) to first propose the operation and a 7-day wait:

1. Daddy (6/9) executes directly (holds EXECUTOR_ROLE on timelock)
2. Brain (3/8) executes via TimelockExecutor contract
3. Deployer EOA executes via TimelockExecutor contract

Why the Delay Cannot Be Bypassed

To change the timelock delay (e.g., reduce from 7 days), an attacker would need to:

1. Control Daddy (6/9) to propose updateDelay() — the only PROPOSER
2. Wait 7 days — Brain or Daddy can cancel during this window
3. Execute via Daddy, Brain, or the EOA — but the operation is already visible onchain for 7 days

DEFAULT_ADMIN was never granted, so no one can grant themselves PROPOSER or TIMELOCK_ADMIN to skip this flow. The timelock holds TIMELOCK_ADMIN but can only act on it through its own propose→wait→execute cycle.