Connect with us


Yearn Finance exploit leads to $11 million loss in DAI vault



Source: Pixabay

DeFi protocol Yearn Finance suffered an exploit earlier today, leading to an $11 million loss in one of its DAI vaults. Following the news of the exploit, YFI fell sharply from $34,700 to $30,200.

According to reports from one of Yearn’s developers, the attacker got away with $2.8 million. Yearn disabled deposits into strategies for v1 DAI, TUSD, USDC, and USDT as they investigated the issue.

Reports suggest that the attacker’s profits consisted of 513k DAI, 1.7 million USDT, and 506K in 3CRV tokens.

The attacker executed 11 transactions in order to obtain these profits, including multiple ETH flash loans from dYdX and Aave v2. Using this ETH as collateral he borrowed USDC and DAI on Compound, later adding this to the 3CRV Curve pool.

After the series of transactions, in each instance, the attacker had more 3CRV tokens, which he was later able to swap for stablecoins.

Those that attempted to analyze the hack believed this to be an economic exploit of a strategy automating single asset entry into a liquidity provider (LP) which has been pushed too far into one asset.

Aave founder Stani Kulechov called this a ‘complex exploit’, stating on Twitter that the attack consisted of over 160 nested transactions. Of the $11 million loss to the vault, the attacker’s profits were only $2.8 million as over $8.6 million amounted to gas costs.

The price of YFI has recovered slightly to $32,359 at the time of writing.

Read the best crypto stories of the day in less than 5 minutes

Subscribe to get it daily in your inbox.

Please select your Email Preferences.

Samyuktha is a full-time journalist at AMBCrypto. Currently pursuing her Masters in Finance and Business Analytics, she is interested in cryptocurrencies, fintech, and blockchain technology adoption across various sectors.

Click to comment

Leave a Reply

Your email address will not be published.

Disclaimer: AMBCrypto's content is meant to be informational in nature and should not be interpreted as investment advice. Trading, buying or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their own research before making any decisions.