When Yawgmoth enters the battlefield, Scurry Oak's evolve ability triggers.
Holding priority, activate Yawgmoth by paying 1 life and sacrificing a creature.
When the creature dies, Moonlit Wake triggers, causing you to gain 1 life.
Resolve the Yawgmoth ability, putting a -1/-1 counter on Scurry Oak and causing you to draw a card.
Resolve the Scurry Oak trigger, putting a +1/+1 counter on it, triggering Scurry Oak's second ability.
Holding priority, activate Yawgmoth by paying 1 life and sacrificing a creature.
When the creature dies, Moonlit Wake triggers, causing you to gain 1 life.
Resolve the Yawgmoth ability, putting a -1/-1 counter on Scurry Oak and causing you to draw a card.
Resolve the Scurry Oak trigger, creating a 1/1 Squirrel creature token.
When the Squirrel enters the battlefield, Scurry Oak's evolve ability triggers.
Repeat from step 6.
This loop turns Scurry Oak and Yawgmoth, Thran Physician into a self-sustaining engine by playing the +1/+1 counters from Scurry Oak's evolve ability against the -1/+1 counter cancellation rules, constantly generating fresh 1/1 green Squirrel creature tokens to sacrifice to Yawgmoth's activated ability. Because Yawgmoth demands a creature sacrifice and 1 life as a cost while drawing you a card, Moonlit Wake neatly cushions that life payment by netting you 1 life every time a creature dies. The result is a brilliantly closed loop that lets you draw as many cards as you need while churning through your entire deck.