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Yearn Degen USDC

deposits closed
USDC·Arbitrum·curated by Yearn
APY1.63%-2.39% vs 30d
TVL$32.21K
Risk score20/ 100
Worse than a plain vault

100% of this vault sits in higher-risk collateral, yet it earns 1.81% on USDC versus 4% for a plain USDC vault (-219 bps). You're not being paid for the extra risk.

Plain English explanationWritten by Sharpe Finance research · model card · last update 2026-05-12
What this vault actually does

Yearn Degen vaults lend underlying assets to markets labeled as higher risk by the Yearn team. Optimization across markets is handled automatically via an algorithm developed by Yearn. Supply caps are set based on various factors and continuously monitored by the Yearn team as well.

What breaks this vault

The honest version. Every structural failure mode this vault is exposed to, ranked by severity. If you want to know whether to invest, start here.

Weighted LLTV across markets is 91.5%. Sharp collateral drawdowns can trigger cascading liquidations faster than vault parameters can be adjusted.

Primary loan or collateral asset is a stablecoin. A sustained depeg below 99 cents impacts NAV and disables liquidation routing for non-USD collateral.

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