From f7d7708744c27c1b61681f48f7005a3617214a4a Mon Sep 17 00:00:00 2001 From: spalen0 Date: Fri, 12 Jun 2026 13:01:47 +0200 Subject: [PATCH 1/3] docs: update monitoring repo links to protocols/ layout The monitoring repo moved every protocol monitor into a single protocols/ folder (yearn/monitoring#265). Re-point the curation page links (morpho, aave, compound, maker, ethena, euler, fluid, pendle, lrt-pegs, safe/main.py) to protocols/, and point the "others" link at the protocols/ directory. Co-Authored-By: Claude Opus 4.8 (1M context) --- docs/getting-started/products/curating/introduction.md | 8 ++++---- 1 file changed, 4 insertions(+), 4 deletions(-) diff --git a/docs/getting-started/products/curating/introduction.md b/docs/getting-started/products/curating/introduction.md index a310ee859..a15026276 100644 --- a/docs/getting-started/products/curating/introduction.md +++ b/docs/getting-started/products/curating/introduction.md @@ -4,7 +4,7 @@ ## Our Origin Story -Yearn Curation started from an internal need to handle risk scores for Yearn strategies that deposit into Morpho Vaults. Each vault has its own curator and each curator has different risk appetites. Morpho Vault code is immutable, but the vault's composition changes. Curators can add and remove markets from vaults, and allocations to markets can change so that the vaults no longer match their previous risk scores. So we need to be able to react and update risk scores dynamically. To handle this flow, we build a monitoring stack for the Morpho Vaults used by Yearn V3 strategies. This risk monitoring captures events and triggers alerts when these vaults are not behaving as expected. You can read about how our monitoring works in the [monitoring section](#monitoring) of this page, and on our [GitHub repository](https://github.com/yearn/monitoring/tree/main/morpho). +Yearn Curation started from an internal need to handle risk scores for Yearn strategies that deposit into Morpho Vaults. Each vault has its own curator and each curator has different risk appetites. Morpho Vault code is immutable, but the vault's composition changes. Curators can add and remove markets from vaults, and allocations to markets can change so that the vaults no longer match their previous risk scores. So we need to be able to react and update risk scores dynamically. To handle this flow, we build a monitoring stack for the Morpho Vaults used by Yearn V3 strategies. This risk monitoring captures events and triggers alerts when these vaults are not behaving as expected. You can read about how our monitoring works in the [monitoring section](#monitoring) of this page, and on our [GitHub repository](https://github.com/yearn/monitoring/tree/main/protocols/morpho). With the monitoring stack already built, and the prerequisite knowledge about risk management already in-house, it made sense to take the next step and start curating on Morpho ourselves to make sure our strategies are always in line with our risk appetites. @@ -137,9 +137,9 @@ We don’t just guess what might happen – we build tools to watch it closely. Our monitoring system is designed to track key metrics and potential risks across 20+ DeFi protocols integrated with Yearn, running across multiple chains (Ethereum, Base, Katana, Polygon, Arbitrum, Optimism). Capabilities include: -- Governance Tracking: Observing governance activities, including scheduled timelock transactions using [Tenderly Alerts](https://docs.tenderly.co/alerts/intro-to-alerts), [multisig queued transactions](https://github.com/yearn/monitoring/blob/main/safe/main.py) on Safe, and critical function calls across protocols like [Aave](https://github.com/yearn/monitoring/tree/main/aave), [Compound](https://github.com/yearn/monitoring/tree/main/compound), [Maker](https://github.com/yearn/monitoring/tree/main/maker), [Morpho](https://github.com/yearn/monitoring/tree/main/morpho), [Ethena](https://github.com/yearn/monitoring/tree/main/ethena), [Euler](https://github.com/yearn/monitoring/tree/main/euler), [Fluid](https://github.com/yearn/monitoring/tree/main/fluid), [Pendle](https://github.com/yearn/monitoring/tree/main/pendle), and [others](https://github.com/yearn/monitoring/tree/main/README.md). -- Peg Stability: Checking exchange rates for [LSTs/LRTs](https://github.com/yearn/monitoring/tree/main/lrt-pegs) (like stETH, ezETH, pufETH, rsETH) and stablecoins (USDe, USDS, USD0) in key liquidity pools, alerting on significant depegs. -- Morpho Vault Health: Hourly monitoring of [Morpho vaults](https://github.com/yearn/monitoring/tree/main/morpho) across all chains, tracking bad debt ratios (alerting above 0.5%), utilization rates (alerting above 95%), and composite risk levels calculated as the weighted sum of market risk tiers and allocation percentages. Each market is classified into risk tiers 1–5 based on oracle quality and asset liquidity. +- Governance Tracking: Observing governance activities, including scheduled timelock transactions using [Tenderly Alerts](https://docs.tenderly.co/alerts/intro-to-alerts), [multisig queued transactions](https://github.com/yearn/monitoring/blob/main/protocols/safe/main.py) on Safe, and critical function calls across protocols like [Aave](https://github.com/yearn/monitoring/tree/main/protocols/aave), [Compound](https://github.com/yearn/monitoring/tree/main/protocols/compound), [Maker](https://github.com/yearn/monitoring/tree/main/protocols/maker), [Morpho](https://github.com/yearn/monitoring/tree/main/protocols/morpho), [Ethena](https://github.com/yearn/monitoring/tree/main/protocols/ethena), [Euler](https://github.com/yearn/monitoring/tree/main/protocols/euler), [Fluid](https://github.com/yearn/monitoring/tree/main/protocols/fluid), [Pendle](https://github.com/yearn/monitoring/tree/main/protocols/pendle), and [others](https://github.com/yearn/monitoring/tree/main/protocols). +- Peg Stability: Checking exchange rates for [LSTs/LRTs](https://github.com/yearn/monitoring/tree/main/protocols/lrt-pegs) (like stETH, ezETH, pufETH, rsETH) and stablecoins (USDe, USDS, USD0) in key liquidity pools, alerting on significant depegs. +- Morpho Vault Health: Hourly monitoring of [Morpho vaults](https://github.com/yearn/monitoring/tree/main/protocols/morpho) across all chains, tracking bad debt ratios (alerting above 0.5%), utilization rates (alerting above 95%), and composite risk levels calculated as the weighted sum of market risk tiers and allocation percentages. Each market is classified into risk tiers 1–5 based on oracle quality and asset liquidity. - Market Utilization: Monitoring asset utilization rates in lending markets and sending alerts when utilization approaches critical levels. - Supply Caps: Calculating supply caps multiple times a day based on aggregated DEX liquidity, risky borrower positions, and simulated liquidation slippage. If the calculated cap is lower than the current allocation, alerts are triggered. We don’t immediately lower the supply cap in Morpho contracts, but we lower it in our internal reallocation configuration. This allows us to keep the vault’s allocation below calculated caps and raise caps again without waiting for the timelock delay if the market recovers. If the caps remain elevated over a long period, we lower the cap in the Morpho contracts for maximum safety. - Collateral Liquidity: Calculating liquidity multiple times a day to verify that collaterals backing risky borrowing positions have enough on-chain liquidity. We aggregate liquidity from 10+ DEX sources (Uniswap V2/V3/V4, Curve, Balancer, Aerodrome, SushiSwap, and more) and simulate actual swap slippage. This assures smooth liquidations for the borrowed asset without excessive slippage, and minimizes the risk that a position becomes unprofitable to liquidate and leads to bad debt in lending vaults. From 1658e1aa93e90415c46c3eb1314ad8d8cb2de58f Mon Sep 17 00:00:00 2001 From: spalen0 Date: Fri, 12 Jun 2026 13:03:19 +0200 Subject: [PATCH 2/3] docs: move vault tiers section --- docs/getting-started/products/curating/introduction.md | 8 -------- docs/getting-started/products/curating/morpho-curating.md | 8 ++++++++ 2 files changed, 8 insertions(+), 8 deletions(-) diff --git a/docs/getting-started/products/curating/introduction.md b/docs/getting-started/products/curating/introduction.md index a15026276..862b38a8e 100644 --- a/docs/getting-started/products/curating/introduction.md +++ b/docs/getting-started/products/curating/introduction.md @@ -10,14 +10,6 @@ With the monitoring stack already built, and the prerequisite knowledge about ri We publish our risk assessments, token exposures, and Morpho market monitoring publicly on our [Yearn Curation Dashboard](https://curation.yearn.fi/). Transparency is a core principle — anyone can review the same risk data we use to make curation decisions. -## Vault Tiers - -We sort our vaults into three risk tiers: - -- **Yearn**: These vaults stick mostly to the big, well-known crypto markets (“blue-chips”). The goal here is steady, reliable yield with the lowest possible chance of things going sideways. -- **Yearn OG**: These vaults dip into markets that offer potentially higher yields but come with a bit more risk. They correspond to Yearn’s internal “risk level 2”, with some small allocations to "risk level 3" markets to boost yield with enhanced monitoring. -- **Yearn Degen**: These vaults are for those comfortable with higher risk for potentially even higher yields. They correspond to Yearn’s internal “risk level 3” and above. - ## Curation Overview ```mermaid diff --git a/docs/getting-started/products/curating/morpho-curating.md b/docs/getting-started/products/curating/morpho-curating.md index fe4b1020c..e64994bf2 100644 --- a/docs/getting-started/products/curating/morpho-curating.md +++ b/docs/getting-started/products/curating/morpho-curating.md @@ -12,6 +12,14 @@ Morpho was the first chapter of our curation story. It has been a successful one Morpho is a permissionless, isolated money market protocol where each market consists of a single collateral and a single loan asset. Morpho Vaults follow the ERC-4626 standard and lend deposited assets into these underlying Morpho markets. The markets are selected by the curator of the vault, who has the ability to reallocate funds, set supply caps, and add or remove markets. +### Vault Tiers + +We sort our vaults into three risk tiers: + +- **Yearn**: These vaults stick mostly to the big, well-known crypto markets (“blue-chips”). The goal here is steady, reliable yield with the lowest possible chance of things going sideways. +- **Yearn OG**: These vaults dip into markets that offer potentially higher yields but come with a bit more risk. They correspond to Yearn’s internal “risk level 2”, with some small allocations to "risk level 3" markets to boost yield with enhanced monitoring. +- **Yearn Degen**: These vaults are for those comfortable with higher risk for potentially even higher yields. They correspond to Yearn’s internal “risk level 3” and above. + ### Roles Yearn's Morpho vaults are managed by role: From 1aff9cd95ec1d7e86103c7c62a3d04df325b0bb0 Mon Sep 17 00:00:00 2001 From: spalen0 Date: Fri, 12 Jun 2026 13:19:44 +0200 Subject: [PATCH 3/3] docs: cleanup curation --- docs/getting-started/products/curating/introduction.md | 2 +- 1 file changed, 1 insertion(+), 1 deletion(-) diff --git a/docs/getting-started/products/curating/introduction.md b/docs/getting-started/products/curating/introduction.md index 862b38a8e..34adb3df8 100644 --- a/docs/getting-started/products/curating/introduction.md +++ b/docs/getting-started/products/curating/introduction.md @@ -130,7 +130,7 @@ Our monitoring system is designed to track key metrics and potential risks acros Capabilities include: - Governance Tracking: Observing governance activities, including scheduled timelock transactions using [Tenderly Alerts](https://docs.tenderly.co/alerts/intro-to-alerts), [multisig queued transactions](https://github.com/yearn/monitoring/blob/main/protocols/safe/main.py) on Safe, and critical function calls across protocols like [Aave](https://github.com/yearn/monitoring/tree/main/protocols/aave), [Compound](https://github.com/yearn/monitoring/tree/main/protocols/compound), [Maker](https://github.com/yearn/monitoring/tree/main/protocols/maker), [Morpho](https://github.com/yearn/monitoring/tree/main/protocols/morpho), [Ethena](https://github.com/yearn/monitoring/tree/main/protocols/ethena), [Euler](https://github.com/yearn/monitoring/tree/main/protocols/euler), [Fluid](https://github.com/yearn/monitoring/tree/main/protocols/fluid), [Pendle](https://github.com/yearn/monitoring/tree/main/protocols/pendle), and [others](https://github.com/yearn/monitoring/tree/main/protocols). -- Peg Stability: Checking exchange rates for [LSTs/LRTs](https://github.com/yearn/monitoring/tree/main/protocols/lrt-pegs) (like stETH, ezETH, pufETH, rsETH) and stablecoins (USDe, USDS, USD0) in key liquidity pools, alerting on significant depegs. +- Peg Stability: Checking exchange rates for [LSTs/LRTs](https://github.com/yearn/monitoring/tree/main/protocols/lrt-pegs) (like stETH, ezETH) and stablecoins (USDe, USDS) in key liquidity pools, alerting on significant depegs. - Morpho Vault Health: Hourly monitoring of [Morpho vaults](https://github.com/yearn/monitoring/tree/main/protocols/morpho) across all chains, tracking bad debt ratios (alerting above 0.5%), utilization rates (alerting above 95%), and composite risk levels calculated as the weighted sum of market risk tiers and allocation percentages. Each market is classified into risk tiers 1–5 based on oracle quality and asset liquidity. - Market Utilization: Monitoring asset utilization rates in lending markets and sending alerts when utilization approaches critical levels. - Supply Caps: Calculating supply caps multiple times a day based on aggregated DEX liquidity, risky borrower positions, and simulated liquidation slippage. If the calculated cap is lower than the current allocation, alerts are triggered. We don’t immediately lower the supply cap in Morpho contracts, but we lower it in our internal reallocation configuration. This allows us to keep the vault’s allocation below calculated caps and raise caps again without waiting for the timelock delay if the market recovers. If the caps remain elevated over a long period, we lower the cap in the Morpho contracts for maximum safety.