Yearn.Finance Restores Its yDAI Vault After $11 Mln Exploit By Hackers.
2021-02-10 | Mike Hallen
![Yearn.Finance Restores Its yDAI Vault After $11 Mln Exploit By Hackers.]()
Leading Defi protocol Yearn.Finance [YFI] has restored its yDAI vault
in the aftermath of a $11 Mln exploit by hackers.
Earlier on Tuesday,Yearn
revealed that they
opened a Maker vault with YFI tokens from the treasury and minted 9.7 Mln DAI tokens from the vault
to place the yDAI vault intact. Using lent money permits the project to reimburse users without taking
supplies to the treasury, either due to possible YFI appreciation or by gradually repaying the debt with protocol revenue. The team said that
this is often a one-off occurrence, as they expect users to hedge their own risks by
purchasing coverage from Yearn ecosystem member Cover, which also got
hacked recently.
The yDAI vault’s exploit was accompanied by a 15% crash
within the price of Yearn Finance’s governance token in less than two hours, with YFI subsequently dropping from $35k to as low as $29.6k. At the reporting time, YFI is trading at $37,538 USD, up 17.8% over the past 24 hours.
Despite the brief crash,
the entire value locked in Yearn remained somewhat steady, with its TVL staying above
the amount of January this year and December last year. At the reporting time, Yearn’s TVL amounts to $481.8 Mln, up around 1% over the past 24 hours,
consistent with data from
DeFi Pulse. Yearn
is among the 14th largest DeFi protocol by TVL at the time of
reporting.
The restoration of yDAI vault comes
a few days after Yearn revealed that its V1 version of yDAI vault was exploited by a hacker earlier on 4th Feb. The exploit reportedly caused a loss of $11 Mln, though the attacker
did not reap most of the loot, with just 513,000 DAI and $1.7 Mln USDT
getting to the perpetrator.
As reported earlier, Yearn.finance core contributors and community members submitted and passed a
proposal to extend the availability of YFI by 6666 tokens, or about $225 Mln at the time of proposal. The proposal
is a component of a wider discussion about incentives for DeFi developers, with the Yearn.finance community feeling like its contributors
weren't being properly incentivized amid much larger war chests from competitors.
The latest exploit
isn't the primary attack targeting Andre Cronje-backed DeFi protocols. Earlier in September last year, Eminence, an unreleased project being built by Yearn’s Andre Cronje,
suffered a $15 Mln exploit.
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