Yearn — yvWETH-1

Contract Addresses

Core yvWETH-1 Contracts

Contract	Address	Type
yvWETH-1 Vault	0xc56413869c6CDf96496f2b1eF801fEDBdFA7dDB0	Yearn V3 Vault (v3.0.2), Vyper minimal proxy
Underlying asset (WETH)	0xC02aaA39b223FE8D0A0e5C4F27eAD9083C756Cc2	Wrapped Ether
Accountant	0x5A74Cb32D36f2f517DB6f7b0A0591e09b22cDE69	Shared Yearn Accountant (0% mgmt, 10% perf)
Fee Recipient (Dumper)	0x590Dd9399bB53f1085097399C3265C7137c1C4Cf	Claims fees and routes to auctions/splitters

Governance Contracts (shared with all Yearn V3 risk-1 vaults)

Contract	Address	Configuration
Yearn V3 Role Manager	0xb3bd6B2E61753C311EFbCF0111f75D29706D9a41	Single instance for all category-1 vaults
Daddy / ySafe (Governance)	0xFEB4acf3df3cDEA7399794D0869ef76A6EfAff52	6-of-9 Gnosis Safe — holds 12 of 14 vault roles
Brain (Operations)	0x16388463d60FFE0661Cf7F1f31a7D658aC790ff7	3-of-8 Gnosis Safe
Security	0xe5e2Baf96198c56380dDD5E992D7d1ADa0e989c0	4-of-7 Gnosis Safe — DEBT, MAX_DEBT, EMERGENCY
Strategy Manager (Timelock)	0x88Ba032be87d5EF1fbE87336b7090767F367BF73	TimelockController — 7-day delay for strategy additions and accountant changes. Self-governed
Keeper	0x604e586F17cE106B64185A7a0d2c1Da5bAce711E	yHaaSRelayer — REPORTING only
Debt Allocator	0x1e9eB053228B1156831759401dE0E115356b8671	Minimal proxy — REPORTING + DEBT_MANAGER

Yearn V3 Infrastructure

Contract	Address
Vault Factory (v3.0.2)	0x444045c5C13C246e117eD36437303cac8E250aB0
Vault Original (v3.0.2)	0x1ab62413e0cf2eBEb73da7D40C70E7202ae14467

Active Strategies (4 total; 3 in default queue)

#	Strategy	Name	Current Debt (WETH)	Pct of TotalDebt	Strategy totalAssets (WETH)	In Queue?
1	0x470e0e048F85CFD72EEf325895e02c8D297E7435	stETH Accumulator	5,212	58.4%	5,212.53	YES
2	0xfca3F21D60d5bC8B4C5c35F169bb5B6402510151	Spark WETH Lender	2,521	28.2%	2,521.35	YES
3	0x68A14629cb07c74259f481382fE8b6cFD8970121	wstETH/WETH Spark Looper	1,001	11.2%	1,001.28	NO
4	0xE89371eAaAC6D46d4C3ED23453241987916224FC	Yearn OG WETH (Morpho MetaMorpho)	193	2.2%	807.41	YES

Strategy Protocol Dependencies

Protocol	Strategy	Known Allocation
Lido (stETH)	stETH Accumulator	58.4% of vault totalDebt
Spark Lend (Sky)	Spark WETH Lender + wstETH/WETH Spark Looper	39.4% of vault totalDebt (28.2% lender + 11.2% looper)
Morpho	Yearn OG WETH (MetaMorpho vault)	2.2% of vault totalDebt (193 WETH); 9.1% effective including yield (807.41 WETH totalAssets)
Curve ETH/stETH pool	stETH Accumulator (stake / unwind path)	Indirect dependency
Lido withdrawal queue	stETH Accumulator (unwind path)	Indirect dependency

Key changes from prior assessment: The old Morpho Gauntlet and old Spark strategies have been replaced. The Lido dependency remains dominant at ~58% of totalDebt. Spark Lend exposure has grown to ~39% (via two strategies: direct lender at 28.2% and leveraged looper at 11.2%). A wstETH/WETH Spark Looper strategy (not in default queue) introduces moderate leverage. Morpho exposure continues through Yearn OG WETH at ~2% of totalDebt (~9% effective).

Audits and Due Diligence Disclosures

Yearn V3 Core Audits

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

Lido Audits (Underlying Protocol)

Lido is one of the most extensively audited LSTs in DeFi. Audits include MixBytes, Quantstamp, Sigma Prime, Statemind, Oxorio, ChainSecurity, and others. See Lido security for the full list.

Curve ETH/stETH Pool

Audited as part of Curve's StableSwap suite. Pool address 0xDC24316b9AE028F1497c275EB9192a3Ea0f67022.

Strategy Review Process

All strategies pass through Yearn's 12-metric risk-scoring framework (RISK_FRAMEWORK.md). yvWETH-1 is registered as Category 1 in the Role Manager (getCategory(vault) == 1, confirmed at block 25574582), the strictest tier.

Bug Bounty

• Yearn (Immunefi): active, $200,000 max payout (Critical). https://immunefi.com/bounty/yearnfinance/
• Yearn (Sherlock): also listed at https://audits.sherlock.xyz/bug-bounties/30
• Lido (Immunefi): active bug bounty
• Safe Harbor (SEAL): Yearn is not listed on the SEAL Safe Harbor registry

On-Chain Complexity

• 4 funded strategies at the snapshot
  • stETH Accumulator — pipeline: WETH → ETH (unwrap) → stETH (Curve or Lido submit). Two hops; the dominant strategy at ~58% of totalDebt
  • Spark WETH Lender — pipeline: WETH → Spark Lend supply. Atomic withdrawal. 28.2% of totalDebt
  • wstETH/WETH Spark Looper — pipeline: WETH → wstETH (Lido) → Spark Lend collateral → borrow WETH → re-supply. Leveraged looping on Spark Lend. Moderate leverage at ~11% of totalDebt. May require deleveraging for full exit
  • Yearn OG WETH — Morpho MetaMorpho vault; WETH deployed into Morpho lending markets. Atomic withdrawal. 2.2% of totalDebt (9.1% effective). Confirmed via MORPHO() returning 0xBBBBBbbBBb9cC5e90e3b3Af64bdAF62C37EEFFCb
• One strategy uses moderate leverage (wstETH/WETH Spark Looper, ~11% of totalDebt) backed by blue-chip wstETH collateral. The other three strategies use simple stake / lend patterns
• No cross-chain bridging
• Standard ERC-4626 deposit / withdrawal at the vault level
• Mixed unwind pattern — the stETH Accumulator (~58%) requires management-paced unwind; the Spark WETH Lender (~28%), wstETH/WETH Spark Looper (~11%), and Yearn OG WETH (~2% of totalDebt, ~9% effective) provide withdrawal from deep Spark Lend and Morpho markets. The looper may require partial deleveraging for full exit
• Vault is immutable (non-upgradeable Vyper minimal proxy) — confirmed unchanged at block 25574582

Historical Track Record

• Vault deployed: March 12, 2024 (deployment tx) — ~28 months in production
• TVL: ~8,927 WETH (~$16.66M)
• PPS trend: 1.000000 → ~1.055 (~5.5% cumulative return over ~28 months, ~2.4% annualized)
• Security incidents: None known for this vault or for the Yearn V3 framework
• Strategy changes: active management. Between May 11 and July 22, 2026, a strategy reshuffle occurred: Morpho Gauntlet (formerly 71%) and old Spark WETH (formerly 4%) were fully drained; the stETH Accumulator grew from 1,316 → 5,212 WETH current_debt. A new Spark WETH Lender, a new wstETH/WETH Spark Looper (leveraged), and Yearn OG WETH (Morpho MetaMorpho vault) were all activated by June 25. By the July 22 snapshot, vault TVL had grown 67% to ~8,927 WETH across four active strategies
• Yearn V3 track record: V3 framework live since May 2024 (~26 months). No V3 vault exploits

Lido track record: $20B+ TVL, longest-running LST, Shapella enabled withdrawals (June 2023). Curve stETH/ETH peg has been stable post-Shapella with brief periods of slight discount during stress events.

Funds Management

yvWETH-1 is ~100% deployed at the snapshot (~0.28 WETH idle). The strategy mix is: stETH Accumulator (~58% of totalDebt), Spark WETH Lender (~28%), wstETH/WETH Spark Looper (~11%), and Yearn OG WETH (~2% of totalDebt, but 807 WETH strategy totalAssets due to accumulated Morpho yield). All four strategies fully reconcile to totalDebt (~8,927 WETH).

Four previously-funded strategies (Morpho Gauntlet, old Spark WETH, and both Aave V3 variants) have been fully drained to zero debt and removed from the default queue.

Strategy 1: stETH Accumulator (~58.4% of vault totalDebt)

Contract: 0x470e0e048F85CFD72EEf325895e02c8D297E7435

The contract code (Strategy.sol / BaseLSTAccumulator.sol, verified on Etherscan) implements:

Stake path:

1. WETH unwrapped to ETH at the strategy contract
2. ETH staked via one of two routes, selected per call:
   • Curve ETH/stETH pool (0xDC24316b9AE028F1497c275EB9192a3Ea0f67022) — used when Curve quotes a better-than-1:1 rate
   • Lido submit{value}() — guaranteed 1:1 minting

Unwind path (manual, management-only — there is no auto-unwind on user withdrawal):

Method	Mechanic	Latency
manualSwapToAsset()	Sells stETH → ETH via Curve with a min-out parameter	Immediate
initiateLSTWithdrawal()	Queues stETH in the Lido withdrawal queue (0x889edC2eDab5f40e902b864aD4d7AdE8E412F9B1) for guaranteed 1:1 redemption	1–7 days under normal load
manualClaimWithdrawals()	Claims finalized Lido withdrawals back to ETH	Immediate after finalization

Strategy parameters:

• Activated: April 16, 2026 (activation = 1776351539)
• Last reported: July 11, 2026 (last_report = 1783748183)
• max_debt: 15,000 WETH
• Management: Brain multisig (3-of-8) and Debt Allocator
• Keeper: yHaaSRelayer (0x604e586F17cE106B64185A7a0d2c1Da5bAce711E)

Strategy 2: Spark WETH Lender (~28.2% of vault totalDebt)

Contract: 0xfca3F21D60d5bC8B4C5c35F169bb5B6402510151

The strategy supplies WETH to Spark Lend on Ethereum mainnet, earning variable-rate lending yield. Withdrawal is atomic against the deep Spark Lend WETH market.

Strategy 3: wstETH/WETH Spark Looper (~11.2% of vault totalDebt)

Contract: 0x68A14629cb07c74259f481382fE8b6cFD8970121

This strategy leverages wstETH as collateral to borrow WETH on Spark Lend (an Aave-fork lending market). It is an upgradeable proxy with implementation LSTAaveLooper at 0xd377919fa87120584b21279a491f82d5265a139c. The strategy is not in the vault's default queue (queue positions 0–2 are occupied by stETH Accumulator, Yearn OG WETH, and Spark WETH Lender respectively) but holds active debt from the vault. The looper deploys all assets into Spark Lend — it holds 0 WETH, 0 stETH, and 0 wstETH directly.

Mechanics:

1. WETH is staked into wstETH via Lido
2. wstETH is supplied as collateral on Spark Lend
3. WETH is borrowed against the wstETH collateral
4. The borrowed WETH is re-supplied (looped), amplifying the Spark Lend yield

Liquidation risk: The position is leveraged but uses wstETH/WETH, one of the safest collateral pairs in DeFi. Liquidation would require an extreme stETH/WETH exchange rate divergence. The leverage is moderate and only on ~11% of vault totalDebt.

Withdrawal: Exiting the looper requires partial deleveraging (repaying the borrowed WETH, withdrawing wstETH collateral, and unwrapping wstETH → stETH → WETH). This is not fully atomic like the Spark WETH Lender.

Strategy 4: Yearn OG WETH (~2.2% of vault totalDebt; 807.41 WETH strategy totalAssets)

Contract: 0xE89371eAaAC6D46d4C3ED23453241987916224FC

New strategy added to the default queue after the May 11 assessment. This is a Morpho MetaMorpho vault, confirmed by MORPHO() returning 0xBBBBBbbBBb9cC5e90e3b3Af64bdAF62C37EEFFCb (the Morpho protocol). Listed on Morpho's app at https://app.morpho.org/ethereum/vault/0xE89371eAaAC6D46d4C3ED23453241987916224FC/yearn-og-weth. WETH is deployed into Morpho lending markets. The strategy's PPS is 1.0366 (strategy-level), implying 3.66% yield since deployment. The gap between current_debt (193 WETH) and totalAssets() (807.41 WETH) represents ~614 WETH of accumulated Morpho lending yield awaiting keeper report — normal behavior for a Yearn strategy.

• Morpho Vault owner() is 0xe5e2Baf96198c56380dDD5E992D7d1ADa0e989c0 Yearn Security multisig 4-of-7.

Accessibility

• Deposits: Permissionless ERC-4626 — anyone can deposit WETH and receive yvWETH-1. Subject to 15,000 WETH deposit limit
• Withdrawals: ERC-4626. The stETH Accumulator (~58% of totalDebt) does NOT auto-unwind — availableWithdrawLimit() on that strategy returns only its loose WETH balance. The Spark WETH Lender (~28%), wstETH/WETH Spark Looper (~11%), and Yearn OG WETH (~2% of totalDebt, ~9% effective with yield) provide withdrawal from Spark Lend and Morpho markets. The looper may require partial deleveraging for full exit. See the "Liquidity Risk" section below
• No cooldown or lock period at the vault level
• Fees: 0% management, 10% performance
• Profit unlock: 10 days

Collateralization

• 100% backing in WETH, stETH, Spark Lend, and Morpho positions
• Collateral quality: Lido stETH is the largest LST ($20B+ TVL, multi-operator). Spark Lend and Morpho are established blue-chip lending venues on Ethereum mainnet; both lend against bluechip collateral only
• Moderate leverage on one strategy — the wstETH/WETH Spark Looper (~11% of totalDebt) uses wstETH as collateral to borrow and re-supply WETH on Spark Lend. The collateral is blue-chip (wstETH) and the LTV is conservative. The other three strategies (58% + 28% + 2%) use simple stake / lend patterns with no leverage
• Redeemability: stETH can be unwound either via Curve (subject to peg slippage) or via the Lido withdrawal queue (1–7 days under normal load, 1:1 redemption). Spark WETH Lender and Yearn OG WETH (Morpho MetaMorpho) positions are instantly redeemable against deep lending markets. The wstETH/WETH Spark Looper requires partial deleveraging for full exit

Provability

• PPS: ERC-4626, fully algorithmic
• Strategy totalAssets(): stETH Accumulator reads on-chain stETH balance. Spark WETH Lender reads Spark Lend position value. Yearn OG WETH reads Morpho MetaMorpho share value (on-chain and verifiable)
• Accounting-lag caveat (currently dormant): when the stETH Accumulator has an in-flight Lido withdrawal (pendingRedemptions > 0), _harvestAndReport() is blocked and the strategy values the in-flight portion at its pre-request mark. At this snapshot pendingRedemptions = 0 so the lag is not active, but the mechanism re-engages on every initiateLSTWithdrawal() call
• Profit / loss: reported by keeper via process_report(), locked over 10 days
• Strategy debt reconciliation: strategy current_debt sum (~8,927 WETH) now covers 100% of totalDebt() (~8,927 WETH). Fully reconciled with the discovery of the wstETH/WETH Spark Looper

Liquidity Risk

Aspect	Detail
Vault-level idle	0.2844 WETH (vault is ~100% deployed)
Manual-unwind portion	~58% of totalDebt — stETH Accumulator (5,212 WETH); availableWithdrawLimit() on this strategy returns only its loose WETH (0 at this snapshot)
Atomic-unwind portion	~30% of totalDebt — Spark WETH Lender (2,521 WETH, 28.2%) + Yearn OG WETH (193 WETH, 2.2%; 807.41 WETH effective). Both provide atomic withdrawal from deep lending markets
Leveraged-unwind portion	~11% of totalDebt — wstETH/WETH Spark Looper (1,001 WETH); requires partial deleveraging on Spark Lend for full exit
Manual unwind paths (stETH)	(a) Curve ETH/stETH (immediate, peg-dependent), (b) Lido queue (1–7 days, 1:1)
Curve ETH/stETH pool depth	Deep pool; stETH peg has been stable post-Shapella
Lido queue normal load	1–7 days for finalization
Cooldown / restrictions	None at the vault level

Practical implications:

• Mixed unwind profile — ~58% of totalDebt requires management-paced unwind (stETH Accumulator), ~30% provides atomic withdrawal from deep lending markets (Spark Lend + Morpho), ~11% requires deleveraging to exit (wstETH/WETH Spark Looper)
• Lido queue can extend under stress (post-merge withdrawal congestion, large coordinated unstake events)
• Same-asset: vault token is WETH-denominated; no price-divergence risk on the share
• Deposit limit: 15,000 WETH cap vs ~8,927 WETH TVL (room for +68%)
• Single-venue concentration: ~58% of totalDebt sits in the stETH Accumulator — a single Lido-based strategy. Spark Lend accounts for a combined ~39% across two strategies (direct lender + leveraged looper)
• Yearn Treasury deposit: ~1,600 ETH has been deposited by Yearn Treasury into this vault, providing a liquidity floor

The on-chain reality on the stETH Accumulator: availableWithdrawLimit() is deliberately constrained to the strategy's loose WETH balance (returns 0 at this snapshot). This is a design choice to prevent forced-sale of stETH at a discount during peg events, but it means redemptions are management-paced for the ~58% Accumulator portion. The Spark WETH Lender, wstETH/WETH Spark Looper, and Yearn OG WETH strategies provide a substantial withdrawal buffer.

Centralization & Control Risks

Governance

Position	Address	Threshold	Roles on Vault
Daddy (ySafe)	0xFEB4acf3df3cDEA7399794D0869ef76A6EfAff52	6-of-9	12 of 14 vault roles
Brain	0x16388463d60FFE0661Cf7F1f31a7D658aC790ff7	3-of-8	QUEUE, REPORTING, DEBT, MAX_DEBT, DEPOSIT_LIMIT, WITHDRAW_LIMIT, PROFIT_UNLOCK, DEBT_PURCHASER, EMERGENCY
Security	0xe5e2Baf96198c56380dDD5E992D7d1ADa0e989c0	4-of-7	DEBT, MAX_DEBT, EMERGENCY
Strategy Manager (Timelock)	0x88Ba032be87d5EF1fbE87336b7090767F367BF73	7-day delay	ADD_STRATEGY, REVOKE_STRATEGY, FORCE_REVOKE, ACCOUNTANT, MAX_DEBT
Keeper	0x604e586F17cE106B64185A7a0d2c1Da5bAce711E	Bot	REPORTING only
Debt Allocator	0x1e9eB053228B1156831759401dE0E115356b8671	Bot	REPORTING + DEBT_MANAGER

ySafe 6-of-9 signers include publicly known DeFi contributors — see Yearn Multisig Info.

Strategy-specific governance: the stETH Accumulator's manual unwind functions (manualSwapToAsset, initiateLSTWithdrawal, manualClaimWithdrawals) are management-only. This is a strategy-level centralization point — Brain decides when to start unwinding stETH for upcoming user redemptions. Standard for LST integrations.

Properties (all 6 Yearn V3 risk-1 vaults):

1. No EOA holds vault roles directly
2. Strategy additions and accountant changes pass through 7-day timelock
3. Self-governed timelock — TIMELOCK_ADMIN belongs to the timelock itself
4. Vault contract is immutable — Vyper minimal proxy
5. Same governance pattern across 37+ vaults

Programmability

• PPS: ERC-4626, fully algorithmic
• Vault operations: permissionless deposit / withdraw on-chain
• Strategy reporting: automated via keeper
• Debt allocation: Debt Allocator (automated) + Brain (manual)
• Off-chain inputs: none directly to PPS or fund movement, but the LST-Accumulator unwind decisions are off-chain (management-paced)

External Dependencies

Dependency	Criticality	Notes
Lido (stETH)	Critical — ~59% of vault totalDebt	Largest LST, $20B+ TVL, well-audited stack, multi-operator. Shapella-enabled withdrawals work 1:1 within 1–7 days
Spark Lend (Sky)	Medium — ~31% of vault totalDebt	Established blue-chip lending venue, WETH supply market is deep
Morpho	Low — ~2% of vault totalDebt (~9% effective including yield)	MetaMorpho vault deploying into Morpho lending markets; bluechip collateral only
Curve ETH/stETH pool	Medium (unwind path for ~59%)	Used for both staking (when better than 1:1) and manual unwind
Lido withdrawal queue	Medium (unwind path for ~59%)	1:1 redemption, 1–7 days normal load

Operational Risk

• Team: Yearn Finance — established 2020, public contributors, named multisig signers
• Vault management: Standard Yearn V3 Role Manager pattern shared across 37+ vaults
• Documentation: Comprehensive Yearn V3 documentation. Strategy code (including BaseLSTAccumulator.sol) verified on Etherscan
• Legal: Yearn BORG via YIP-87
• Incident response: 4 historical V1 events handled. V3 framework not yet stress-tested by an exploit. $200K Immunefi bug bounty for responsible disclosure
• V3 immutability: vault cannot be upgraded — eliminates proxy upgrade risk but means a critical bug requires deploying a new vault and migrating
• Strategy-level operational risk: the management-paced unwind for the stETH Accumulator covers the majority of TVL (~58% of totalDebt). The Spark WETH Lender (~28%), wstETH/WETH Spark Looper (~11%), and Yearn OG WETH (Morpho MetaMorpho, ~2% of totalDebt, ~9% effective) provide withdrawal paths, reducing Brain's operational burden for non-Accumulator redemptions

Monitoring

Existing Monitoring Infrastructure

Yearn maintains the monitoring repository with active alerting. yvWETH-1 is in the monitored vault list:

• Large flow alerts (protocols/yearn/alert_large_flows.py) — runs hourly via the automation scheduler. Alerts on deposits / withdrawals exceeding threshold via Telegram
• Endorsed vault check (protocols/yearn/check_endorsed.py) — daily
• Timelock monitoring (protocols/timelock/timelock_alerts.py) — monitors the Yearn TimelockController across multiple chains

Key Contracts

Contract	Address	Monitor
yvWETH-1 Vault	0xc56413869c6CDf96496f2b1eF801fEDBdFA7dDB0	PPS (convertToAssets(1e18)), totalAssets(), totalDebt(), totalIdle(), Deposit / Withdraw events. Also reconcile totalDebt against strategy debt sum
stETH Accumulator	0x470e0e048F85CFD72EEf325895e02c8D297E7435	totalAssets(), estimatedTotalAssets(), pendingRedemptions, balanceOfAsset(), isShutdown(), keeper report frequency
Spark WETH Lender	0xfca3F21D60d5bC8B4C5c35F169bb5B6402510151	totalAssets(), totalSupply(), PPS, isShutdown(), keeper report frequency
wstETH/WETH Spark Looper	0x68A14629cb07c74259f481382fE8b6cFD8970121	totalAssets(), balanceOfAsset(), isShutdown(), keeper report frequency. Monitor Spark Lend health factor and leverage ratio. Implementation: 0xd377919fa87120584b21279a491f82d5265a139c (LSTAaveLooper, upgradeable proxy)
Yearn OG WETH	0xE89371eAaAC6D46d4C3ED23453241987916224FC	totalAssets(), totalSupply(), PPS, isShutdown(), keeper report frequency. Morpho MetaMorpho vault
Lido stETH	0xae7ab96520DE3A18E5e111B5EaAb095312D7fE84	Total supply, exchange rate, pause state
Lido Withdrawal Queue	0x889edC2eDab5f40e902b864aD4d7AdE8E412F9B1	Strategy's outstanding withdrawal request status
Curve ETH/stETH	0xDC24316b9AE028F1497c275EB9192a3Ea0f67022	stETH/ETH peg, pool depth
ySafe (Daddy)	0xFEB4acf3df3cDEA7399794D0869ef76A6EfAff52	Signer / threshold changes
Accountant	0x5A74Cb32D36f2f517DB6f7b0A0591e09b22cDE69	Fee changes

Critical Events to Monitor

• PPS decrease — should only increase outside of explicit loss events
• Strategy debt reconciliation — monitor the gap between totalDebt() and strategy debt sum (currently fully reconciled at 100%)
• Allocation drift — currently ~58% stETH / ~28% Spark / ~11% Spark looper / ~2% Yearn OG WETH of totalDebt; drift toward >85% stETH or >50% Spark Lend should trigger reassessment
• stETH/ETH peg deviation — affects the ~58% Accumulator portion and the ~11% looper (liquidation risk)
• Lido withdrawal queue length — extended queue degrades the 1:1 unwind path (affects ~58% of totalDebt)
• pendingRedemptions not draining after expected finalization — points to stuck or slow Lido withdrawal (currently 0 at the snapshot)
• wstETH/WETH Spark Looper health — monitor the looper's leverage ratio and Spark Lend health factor. If the stETH/WETH exchange rate diverges significantly, the leveraged position could approach liquidation
• Strategy additions / removals — StrategyChanged events; new strategies should be reviewed during the 7-day timelock
• ySafe signer / threshold changes
• Lido pause — would impact stETH redemption mechanics for ~59% of totalDebt

Monitoring Functions

Function	Contract	Purpose	Frequency
convertToAssets(1e18)	Vault	PPS tracking	Every 6 hours
totalAssets()	Vault	Total TVL	Daily
totalDebt() / totalIdle()	Vault	Capital deployment ratio	Daily
estimatedTotalAssets()	Strategy	Real on-chain backing (vs totalAssets())	Daily
pendingRedemptions()	Strategy	In-flight Lido withdrawal value	Daily
balanceOfAsset()	Strategy	Loose WETH available for user withdrawals	Hourly
Lido getWithdrawalStatus(...)	Lido queue	Track pending request finalization	Daily until finalized
Curve get_dy(0,1,1e18)	Curve pool	stETH/ETH spot exchange rate	Hourly
getThreshold() / getOwners()	ySafe	Governance integrity	Weekly
getMinDelay()	ySafe	Delay change detection	Weekly

Reassessment Triggers

• Time-based: Reassess in 3 months (October 2026)
• TVL-based: Reassess if TVL exceeds 12,000 WETH or changes by ±50%
• Allocation drift:
  • stETH Accumulator share moves above 85% of vault totalDebt — critical concentration review
  • Spark Lend combined exposure (lender + looper) exceeds 50% of vault totalDebt
  • any one venue exceeds 90% of vault totalDebt
  • wstETH/WETH Spark Looper share exceeds 25% of vault totalDebt
  • Yearn OG WETH strategy totalAssets exceeds 20% of vault TVL
• Strategy changes (addStrategy() proposals at the Strategy Manager TimelockController, 0x88Ba032be87d5EF1fbE87336b7090767F367BF73, 7-day delay):
  • any new strategy proposed for inclusion — re-review during the 7-day timelock window
  • any new strategy with leverage, looping, cross-chain bridging, or non-blue-chip routing
• Lido-specific:
  • extended Lido withdrawal queue (>14 days) — degrades the 1:1 unwind path (affecting ~58% of totalDebt)
  • stETH/ETH peg deviation > 1% sustained — affects the ~58% Accumulator portion and the ~11% leveraged looper (liquidation risk)
  • any Lido contract upgrade or oracle change
  • any new initiateLSTWithdrawal() from the Accumulator — re-engages the pendingRedemptions accounting-lag mechanism
• wstETH/WETH Spark Looper-specific:
  • looper health factor on Spark Lend drops below 1.5 (approaching liquidation threshold)
  • any deleveraging event (forced or management-initiated)
  • looper implementation upgrade (proxy upgrade) — the strategy is an upgradeable LSTAaveLooper proxy
  • looper added to the default queue
• Strategy-specific:
  • pendingRedemptions failing to drain after expected Lido finalization
  • Brain unwind cadence (frequency / size of manualSwapToAsset and initiateLSTWithdrawal calls) drops materially
• Incident-based: any V3 exploit, strategy loss, governance compromise, or major incident at Lido / Curve / Spark Lend / Morpho
• Governance-based: ySafe / Brain / Security signer or threshold changes; any change to the timelock delay (would itself require 7 days)

---

Appendix: Contract Architecture

Snapshot at block 25574582 (July 20, 2026). Updated with July 22, 2026 strategy data.

┌──────────────────────────────────────────────────────────────────────┐
│                          VAULT LAYER                                  │
│                                                                       │
│  ┌────────────────────────────────────────┐                          │
│  │  yvWETH-1 (v3.0.2)                    │                          │
│  │  ERC-4626, immutable Vyper proxy       │                          │
│  │  0xc564…dDB0                           │                          │
│  │                                        │                          │
│  │  TVL: ~8,927 WETH (~$16.66M)           │                          │
│  │   ├── 0.28 idle                        │                          │
│  │   ├── 5,212 stETH Accumulator (58%)    │                          │
│  │   ├── 2,521 Spark WETH Lender (28%)    │                          │
│  │   ├── 1,001 wstETH/WETH Looper (11%)   │                          │
│  │   └── 193 Yearn OG WETH (2.2%)         │                          │
│  └─────────────────┬──────────────────────┘                          │
│                    │                                                  │
│   ┌────────────────┼──────────────────────────────────────────┐       │
│   ▼                ▼              ▼                           ▼       │
│ ┌──────────────────────┐ ┌──────────────┐ ┌──────────────┐ ┌────────┐│
│ │ stETH Accumulator    │ │ Spark WETH   │ │ wstETH/WETH  │ │Yearn OG││
│ │ 0x470e…7435          │ │ Lender       │ │ Spark Looper │ │WETH    ││
│ │                      │ │ 0xfca3…0151  │ │ 0x68A1…0121  │ │0xE893…││
│ │ 5,212 WETH (58.4%)   │ │              │ │              │ │        ││
│ │                      │ │ 2,521 WETH   │ │ 1,001 WETH   │ │193 WETH││
│ │ Stake: WETH→ETH→stETH│ │ (28.2%)      │ │ (11.2%)      │ │(2.2%)  ││
│ │ via Curve or Lido    │ │              │ │              │ │        ││
│ │ Unwind (mgmt-only):  │ │ Atomic:      │ │ Leveraged:   │ │Atomic: ││
│ │  manualSwapToAsset() │ │ Spark Lend   │ │ wstETH→WETH  │ │Morpho  ││
│ │  initiateLSTWithdr.  │ │ supply       │ │ loop on Spark│ │lending ││
│ │  manualClaimWithdr.  │ │              │ │              │ │        ││
│ │                      │ │              │ │ NOT in queue │ │owner:  ││
│ │ pendingRedemptions=0 │ │              │ │ Proxy:       │ │Security││
│ │                      │ │              │ │ LSTAaveLooper│ │(4-of-7)││
│ └──────────────────────┘ └──────────────┘ └──────────────┘ └────────┘│
└──────────────────────────────────────────────────────────────────────┘
                                │
                                ▼
┌──────────────────────────────────────────────────────────────────────┐
│                          UNDERLYING                                   │
│  ┌────────────────────────┐  ┌────────────────────────┐               │
│  │ Lido stETH             │  │ Curve ETH/stETH pool   │               │
│  │ $20B+ TVL              │  │ 0xDC24…7022            │               │
│  │ Multi-operator         │  │ Stake-on-better-quote, │               │
│  │ Shapella withdrawals   │  │ manual unwind venue    │               │
│  └────────────────────────┘  └────────────────────────┘               │
│  ┌────────────────────────┐  ┌────────────────────────┐               │
│  │ Lido Withdrawal Queue  │  │ Spark Lend WETH Market │               │
│  │ 0x889e…F9B1            │  │ (Sky)                  │               │
│  │ 1:1, 1–7 days normal   │  │ WETH supply + wstETH    │               │
│  │                        │  │ collateral loop        │               │
│  └────────────────────────┘  └────────────────────────┘               │
│  ┌────────────────────────┐                                             │
│  │ Morpho Lending Markets │                                             │
│  │ (via MetaMorpho vault) │                                             │
│  │ Bluechip collateral    │                                             │
│  └────────────────────────┘                                             │
└──────────────────────────────────────────────────────────────────────┘

Appendix: TimelockController Role Structure

TimelockController 0x88Ba032be87d5EF1fbE87336b7090767F367BF73 — same timelock used by 37+ Yearn V3 vaults including all six mainnet risk-1 vaults. getMinDelay() = 604800 (7 days).

Role	Holder	Type	Notes
DEFAULT_ADMIN	No holder	—	Never granted (admin = address(0) at construction)
TIMELOCK_ADMIN	Timelock itself	Contract	Self-governed
PROPOSER	Daddy/ySafe	6-of-9 Safe	Sole proposer
EXECUTOR	Daddy/ySafe	6-of-9 Safe	Direct execution
EXECUTOR	TimelockExecutor 0xf8f60bf9456a6e0141149db2dd6f02c60da5779b	Contract	Wrapper: Brain (3/8) + deployer EOA can call execute() through it
CANCELLER	Daddy/ySafe	6-of-9 Safe	Cancel pending proposals
CANCELLER	Brain	3-of-8 Safe	Cancel pending proposals

To shorten the delay, Daddy 6/9 must propose updateDelay(), wait 7 days during which Brain or Daddy can cancel, then execute. DEFAULT_ADMIN was never granted, so no party can self-grant PROPOSER or TIMELOCK_ADMIN to skip the flow.