Earlier today, the decentralized finance protocol Yearn Finance suffered a security breach resulting in the loss of millions of dollars worth of crypto assets. According to data from blockchain security firms, the attacker siphoned off over $11 million worth of stablecoins from Yearn Finance. This unfortunate incident highlights the importance of maintaining robust security measures in the rapidly evolving world of decentralized finance.
PeckShield Inc reported an exploit this morning on an early version of Yearn Finance, known as learn. Initial reports indicated that the attack affected Yearn and Aave, a fellow DeFi protocol. However, Aave has since taken to Twitter to clarify that their V1 platform was not impacted by the exploit, contrary to earlier claims. This incident highlights the importance of remaining vigilant and proactive regarding potential security threats within the DeFi space.
In a race against time, blockchain security firms diligently worked to uncover the source of the exploit that had caused havoc. After a thorough investigation, Yearn Finance’s misconfigured stablecoin yUSDT was identified as the root vulnerability. Peckshield’s meticulous analysis revealed that the hacker had taken advantage of this weakness to generate an astonishing amount of yUSDT – a staggering 1,252,660,242,212,927.5 – using a mere 10,000 USDT. The newly created yUSDT was then swiftly converted into other dollar-pegged stablecoins. The situation was handled with the utmost professionalism and expertise, as the security firms worked tirelessly to ensure the safety and security of the blockchain ecosystem.
According to on-chain analytics firm Lookonchain, the hacker’s haul consisted of a staggering 3.03 million DAI, 2.5 million USDC, 1.7 million BUSD, 1.5 million TUSD, and 1.1 million USDT. However, Yearn Finance has reassured its Twitter community that the damage was contained to learn, an obsolete contract phased out last year. The latest Yearn V2 Vaults remain unscathed by the exploit.
The security breach significantly affected the tokens linked to Yearn Finance and Aave. AAVE saw a minor dip of 2.15% in its value, which was promptly rectified. However, Yearn Finance’s YFI token took a hit of 4.6%, plummeting to a low of $8,942 before bouncing back to $9,175.
