$11 Million Lost In Yearn Finance Exploitation

Yearn Finance’s DeFi yield farming project has been hit by an exploit affecting DAI’s lending pools, according to its Twitter account.

The tweet, which was posted at around 5pm US Eastern time, stated: “We have noticed the v1 yDAI vault has suffered an exploit. Exploitation has been reduced. Full report to follow.”

Yearn developer banteg, one of the website administrators of the DeFi project, followed with some other details: “Yearn DAI v1 vault was exploited, attackers managed to get $2.8 million, the vault lost $11 million. Deposits into the strategy are disabled for v1 DAI , TUSD, USDC, USDT while we investigate. “

The suspected exploit involved 160 “nested transactions,” said Aave founder and CEO Stani Kulechov.

Trading prices for the YFI governance token fell sharply on the news, falling from $34,700 to $30,500 in a matter of minutes (though it has rebounded slightly since then).

Yearn aggregates DeFi lending protocols such as Aave and Compound to ensure users get the best loan returns.

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