The CEBAF Large Acceptance Spectrometer (CLAS) housed in Hall B of the Thomas Jefferson National Accelerator Facility (JLab) provides us with the experimental tools to study strongly-interacting matter and its dynamics. Polarization observables, accessible by means of polarised beams, allow us to perform detailed studies of the underlying dynamics of both initial- and final-state interactions as well as disentangle signal from background events. We have implemented this novel approach to study the interaction between hyperons and nucleons through final-state interactions in $\gamma d \rightarrow K^+\Lambda n$, as well as study initial-state effects by direct comparison of reactions on bound (deuteron) and free-proton targets.