yoEUR - EURC Vault
not rated yetyoEUR is a multichain euro-denominated vault from YO Protocol (yo.xyz) that accepts EURC (Circle's MiCA-compliant euro stablecoin) and automatically allocates it across the best risk-adjusted yield strategies in DeFi. YO Protocol uses Exponential.fi's risk ratings framework to evaluate pools before allocating funds.
YO Protocol is a multi-chain DeFi yield optimizer founded by Mehdi Lebbar and Driss Benamour (co-founders of Exponential.fi, formerly at Uber). The protocol raised $24M total ($14M seed led by Paradigm, $10M Series A led by Foundation Capital), with participation from Coinbase Ventures.
How the yoEUR vault works:
- Deposit EURC into the yoEUR vault on Base (or Ethereum).
- Receive ERC-4626 compliant vault shares representing your growing portion of the vault.
- YO's algorithm automatically allocates EURC across 50+ evaluated DeFi protocols — currently isolated Morpho EURC lending markets on Base and Ethereum, collateralized by cbBTC, wstETH, WETH and cbETH (Aave V4 EURC is whitelisted but unused).
- The vault rebalances daily to chase the best risk-adjusted yield opportunities.
- Withdraw at any time — no lock-ups.
EURC is issued by Circle Internet Financial Europe SAS, licensed as an Electronic Money Institution under France's ACPR (Banque de France). It is fully MiCA-compliant with 100% euro reserves in segregated EEA bank accounts and monthly third-party attestations. EURC has a market cap of about €412M (October 2026) and holds more than half of total euro stablecoin supply.
Basic Information
Fundamentals
TVL
APR
Statistics
| Weekly | Monthly | Quarterly | Yearly | All-Time (Indexed) | |
|---|---|---|---|---|---|
Period Start | N/A | N/A | N/A | N/A | N/A |
| Period End (inclusive) | N/A | N/A | N/A | N/A | N/A |
| APR | N/A | N/A | N/A | N/A | N/A |
| APY | N/A | N/A | N/A | N/A | N/A |
CAGR | N/A | N/A | N/A | N/A | N/A |
Volatility | N/A | N/A | N/A | N/A | N/A |
Sharpe Ratio | N/A | N/A | N/A | N/A | N/A |
Sortino Ratio | N/A | N/A | N/A | N/A | N/A |
| TVL High | N/A | N/A | N/A | N/A | N/A |
| TVL Low | N/A | N/A | N/A | N/A | N/A |
Inflows | — | — | — | — | — |
Liquidity
Not calculated yet
Liquidity analysis will be available soon
Strategy
- Acquire EURC
- Obtain EURC via Circle Mint (institutional) or MiCA-compliant exchanges (Coinbase, Bitstamp, Bitpanda)
- Alternatively, swap on-chain from USDC or other stablecoins
- EURC is natively issued on Ethereum, Base, Avalanche, Solana, Stellar, World Chain, Plasma, Cronos and Arc
- Deposit EURC into yoEUR vault
- Navigate to app.yo.xyz and select the yoEUR vault (available on Base and Ethereum)
- Deposit EURC and receive ERC-4626 vault shares
- Currently all fees are set to zero (protocol-sponsored)
- Earn automated, risk-adjusted yield
- YO's algorithm allocates EURC across whitelisted lending markets (currently Morpho EURC markets against BTC and ETH collateral)
- The vault rebalances daily to optimize for the best risk-adjusted returns
- Pools are evaluated using Exponential.fi's risk framework before allocation
- Additional Merkl rewards may boost effective APR
- Withdraw at any time
- No lock-ups — redeem vault shares for EURC plus accumulated yield
- Currently no withdrawal fees
Yield Source
The yoEUR vault generates yield by algorithmically allocating EURC across multiple DeFi protocols, rebalancing daily to target the best risk-adjusted returns. The protocol evaluates pools using Exponential.fi's risk ratings before any allocation.
Current yield sources:
- Morpho EURC lending (Base): Primary allocation — interest from borrowers of EURC against cbBTC, wstETH, WETH and cbETH in isolated Morpho markets
- Morpho EURC lending (Ethereum): The Ethereum side of the vault lends EURC in Morpho's wstETH/EURC market
- Aave V4 EURC Core: Whitelisted as an alternative destination; unused in October 2026
- Merkl rewards: Additional incentive layer providing bonus yield on top of base protocol returns
Yield characteristics:
- Euro-denominated: All yield is earned in EURC (EUR terms), not USD
- Daily rebalancing: The algorithm shifts allocations daily to capture the best risk-adjusted returns
- Fees: Currently set to zero (protocol-sponsored); configurable deposit/withdrawal fees may be introduced
Euro-denominated lending yields tend to be lower than USD equivalents due to less borrowing demand, but YO's multi-protocol allocation and Merkl rewards currently boost effective returns.
Strategy Limits
Deterministic Constraints
- Euro DeFi Market Depth: Euro-denominated pools and lending markets have significantly lower liquidity than USD equivalents
- Vault TVL: the yoEUR vault is relatively small, which may limit strategy diversification
- Protocol-Managed Allocation: Users cannot choose which underlying protocols receive funds — the algorithm decides
- Merkl Reward Dependency: A portion of yield comes from Merkl incentives which may be temporary
Probabilistic Constraints
- Lending Rate Fluctuation: EURC borrowing demand can compress yields during bearish markets
- Collateral Risk: The Morpho markets yoEUR lends into are backed by BTC and ETH collateral; a sharp price drop with failed liquidations could leave bad debt in a market
- Thin Euro Liquidity: Large vault rebalances or withdrawals may face slippage in shallow euro pools
- EUR/USD Exchange Rate Risk: For non-EUR base currency users, EUR/USD fluctuations affect dollar value of the position
Underlying Assets/Allocations
Allocation from YO's vault API on October 1, 2026; YO rebalances daily.
Risk Analysis
not rated yetPotential Risks
Based on the YO Protocol documentation and EURC documentation:
- Smart Contract Risk (Multi-Layer) — The vault interacts with multiple underlying protocols (Morpho markets, and Aave if re-allocated); a vulnerability in any layer could lead to loss of funds
- Operator/Centralization Risk — Authorized operators manage allocation decisions; misconfiguration or compromised operator keys could result in poor allocations or fund loss
- Strategy Risk — Underlying DeFi protocols carry their own risks including exploits, insolvencies, and governance attacks
- Liquidity Risk — Euro-denominated DeFi markets have significantly lower liquidity than USD; large withdrawals may face slippage
- Bridge Risk — Multichain operation requires cross-chain bridging, introducing additional failure points
- EURC Issuer Risk — Circle insolvency or regulatory action could affect EURC's backing, though MiCA's segregated reserve rules provide legal protection
- EURC Compliance Functions — EURC includes freeze/blacklist capabilities that Circle can execute, potentially restricting token access
- Yield Compression — Low borrowing demand for EURC can compress lending yields; Merkl/$YO incentives may decrease or end
- EUR/USD Exchange Rate Risk — For non-EUR base currency users, EUR/USD fluctuations affect the dollar value of the position
- Protocol Maturity Risk — YO Protocol is relatively new (2024) with a small bug bounty ($10K cap) relative to TVL
Risk Analysis (3rd Parties)
Summary
yoEUR offers automated euro-denominated yield by deploying Circle's MiCA-compliant EURC across risk-evaluated lending markets — currently isolated Morpho EURC markets on Base and Ethereum. The vault benefits from Exponential.fi's risk framework, daily rebalancing, and currently zero fees. YO Protocol has been audited by seven firms (Offbeat, Hunter, Spearbit, Aether Labs, Paladin, Aetheryc, Cantina). A January 2026 yoUSD operational incident ($3.7M shortfall) was covered in full by YO's treasury; yoEUR was unaffected. EURC provides strong regulatory backing under MiCA with 100% segregated euro reserves. However, YO Protocol is young (launched 2024, yoEUR Sep 2025), the vault TVL is small, governance is fully centralized, and the $10K bug bounty cap is low. Euro DeFi markets have significantly less liquidity than USD equivalents, and a portion of yield relies on temporary Merkl/$YO incentives. Hindenrank rates YO Protocol B- (33/100); no other major third-party risk ratings exist for YO itself (EURC: Bluechip A-, S&P 2 – Strong).
See the YO Protocol security documentation: YO Protocol Documentation
YO Protocol Audits: Vault contracts audited by Offbeat Security, Hunter Security and Spearbit (2025), with the cross-chain secondary vault reviewed by Aether Labs and Paladin and the V2 contracts by Aetheryc and Cantina (June 2026). YO's documentation reports no critical or high-severity findings. Active bug bounty on Immunefi. On January 12, 2026, the yoUSD vault experienced a $3.7M operational shortfall due to a misconfigured automated harvest swap — no user funds were lost as YO's treasury covered the full amount. yoEUR was not affected.
Risk-Evaluated Allocation: YO uses Exponential.fi's risk ratings framework to evaluate all pools before allocation. The protocol monitors for price deviations and can automatically pause operations if significant anomalies are detected.
EURC Regulatory Backing: EURC is issued by Circle Internet Financial Europe SAS, licensed as an EMI under France's ACPR (Banque de France). Fully MiCA-compliant with 100% euro reserves in segregated EEA bank accounts, monthly third-party attestations, and legal redemption guarantees at par value.
Young Protocol: YO Protocol launched in 2024 and yoEUR launched in September 2025. The protocol has limited operational history and has not been tested through a major bear market or black swan event. The yoEUR vault remains a small fraction of the protocol's total TVL.
Centralized Operations: Vault allocation decisions are made by YO's algorithm and authorized operators, not by governance vote. Multisig controls with timelocks exist for vault operations, but the protocol is currently team-managed with no decentralized governance.
Small Bug Bounty / Scope Gap: The Immunefi bug bounty caps at $10,000 for critical smart contract vulnerabilities — relatively low compared to TVL and industry standards. As of October 2026 (program last updated January 29, 2026), the yoEUR vault is not listed as an in-scope asset in the Immunefi program (only yoETH, yoBTC, and yoUSD are covered).
See the critical analysis: "YO Protocol's Unseen Dangers: Why Code Audits Aren't Enough"
No Major Third-Party Risk Ratings for YO: YO Protocol and the yoEUR vault lack ratings from S&P, Credora, Bluechip, DeFiSafety, or similar agencies. The underlying EURC is rated A- by Bluechip and 2 (Strong) by S&P's stablecoin stability assessment.