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Yaz0->LZO+RC4 is Marshmallow's hack, read about it on his site (link). Yaz0+LZO spinout did this hack after Marshmallow's hack (link).
The differences between their hacks are:

  • Marshmallow hooks into boot, and places his decompression in an unused area of RAM, whereas spinout's hack uses the space that was freed by the old file loading functions in 'boot'.
  • Marshmallow uses RC4 encryption, which is a great choice if you do want to encrypt your ROM - RC4 is simple and fast. spinout's lacks this feature.
  • Using spinout's hack, ROMs with Yaz0 compressed files do not have to be re-built.

Both hacks have their advantages.