Is Yearn Finance Safe?
Risk Grade: C+ (36/100)
Yearn Finance is rated as elevated risk — multiple novel mechanisms and notable interaction risks.
Moderate risk — pioneered yield vaults and holds $560M, but repeated legacy code exploits and admin key risk undermine confidence
The original DeFi yield aggregator that automatically invests your deposits across lending and trading protocols to maximize returns. It manages $560M in deposits. Its C grade reflects four separate hacks across its history -- including two in 2025 targeting old vault code -- and the risk that a compromised admin key could redirect all vault funds instantly.
TVL
$265M
Mechanisms
7
Interactions
5
Value Grade
B-
Key Risks for Yearn Finance Users
Four separate hacks have hit Yearn vaults, including a $9M exploit in December 2025 and a $11M exploit in 2021 -- old code keeps getting attacked
An admin key holder can attach a new strategy to any vault at any time with no delay -- if that key gets stolen, vault funds can be drained instantly
Your deposits are spread across other DeFi protocols like Aave and Curve -- if any of those get hacked, your Yearn vault takes the loss
Top Risk Factors
- •Repeated exploits on legacy vaults ($11M DAI vault 2021, $9M yETH 2025, $300K TUSD 2025) reveal persistent legacy code risk
- •Controller/strategist key can connect vaults to arbitrary strategies, enabling fund drainage with no user warning period
- •Multi-strategy vault composition increases attack surface — each additional strategy adds a potential exploit vector
Risk Score Breakdown
Yearn Finance's highest risk area is Track Record (12/15). Here's how each dimension contributes to the overall 36/100 score:
Read the Full Yearn Finance Risk Report
This protocol has 2 collapse scenarios. 1 critical and 2 high-severity interaction risks identified. See the full mechanism classification, interaction matrix, and deep-dive recommendations.
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