Curve liquidity providers see $3M windfall from $11M Yearn Finance exploit


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DeFi protocol Yearn Finance has reported that its V1 yDAI vault was exploited by a hacker to the tune of $11 million on Feb. 5. Nonetheless, the hacker didn’t reap the lion’s share of the heist, with Curve liquidity suppliers making extra from the assault than its mastermind.

Whereas the vault misplaced $11 million in complete, Yearn developer “Banteg” tweeted that the hacker had solely been in a position to revenue to the tune of $2.8 million. The crew has suspended all deposits to its V1 DAI, USDC, USDT, and TUSD amid an ongoing investigation.

Cointelegraph reached out to the developer for feedback concerning the assault, however Banteg indicated the crew doesn’t want to make additional feedback on the incident till their investigations into the exploit have been accomplished.

Banteg did share an evaluation of the incident suggesting the hacker had been in a position to steal 513,000 DAI and $1.7 million USDT, with the rest of their stash taking the type of CRV tokens.

Stani Kulechov, the founding father of flash-loan protocol Aave, tweeted that the assault comprised a posh exploit involving greater than 160 transactions throughout a number of DeFi platforms that spent greater than $5,000 in fuel charges.

VC investor Julien Thevenard famous that greater than $3 million of the funds stolen from the vault had been acquired by liquidity suppliers on DeFi lending platform Curve. Banteg indicated to Cointelegraph that Thevenard’s evaluation is correct.

Information of the exploit seems to have pushed a 15% crash within the value of Yearn Finance’s governance token in lower than two hours with YFI plunging from $35,000 to an area low of $29,600. YFI final modified arms for $31,070 on the time of writing.

YFI/USD, 1-hr chart: TradingView

Regardless of the crash, Yearn’s complete worth locked has remained comparatively regular, with its TVL falling simply 4% from $526.5 million to $507.2 million, in accordance with DeFi Pulse.

The Feb. 4 assault will not be the primary to focus on a challenge from Yearn lead developer Andre Cronje, with a hacker draining $15 million from Eminence — an unfinished challenge that Cronje’s followers rushed to lock funds in — after the developer went to mattress one night time in September 2020.