Decentralized finance protocol Yearn.finance has experienced a significant loss of funds due to a scripting error. The error caused the protocol’s treasury balance of lp-yCRVv2 tokens to be swapped, resulting in a loss of approximately $1.4 million. The error occurred during the conversion of yVault LP-yCurve tokens into stablecoins on decentralized exchange CowSwap. Yearn Finance has confirmed the loss and stated that only their LP position was affected, with no impact on customer funds.
Yearn Finance is now requesting that any arbitrage traders who profited from the error consider returning some of the funds to the protocol’s main multisig. The firm has taken steps to prevent similar mistakes in the future, including separating protocol-owned liquidity into specific manager contracts and implementing stricter price impact thresholds.
This incident is not the first time Yearn Finance has faced challenges. In April, the protocol suffered an $11.6 million exploit when a hacker minted a large number of Yearn Tether tokens and traded them for other stablecoins. Despite these setbacks, Yearn Finance continues to work towards improving its security measures and protecting user funds.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Global |
| Countries | |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Dudesahn |
| Companies | The Block, Etherscan, Yearn.finance, CowSwap |
| Currencies | LP Yearn CRV Vault, Ethereum, Dai, LP-yCurve |
| Securities | None |
