• A hack was recently detected in Yearn Finance which resulted in an irregular minting of over 1 quadrillion Yearn Tether (yUSDT).
• The hacker swapped the yUSDT to other stablecoins and transferred 1,000 Ether (ETH) to Tornado Cash.
• The price of yearn.finance (YFI) token dipped immediately after the news about the hack broke but has since recovered.
Yearn Finance Exploit Detected
Blockchain Security firm PeckShield recently detected an exploit on the lending platform Yearn Finance that resulted in an irregular minting of over 1 quadrillion Yearn Tether (yUSDT) using $10,000.
Hackers Swapped yUSDT To Other Cryptocurrencies
According to a tweet from PechShield, the hacker proceeded to swap the yUSDT to other cryptocurrencies including $11.6 million worth of stablecoins such as Binance USD (BUSD), TrueUSD (TUSD), Tether (USDT), USD Coin (USDC), DAI, and Pax Dollar (USDP). The hacker has also managed to transfer 1,000 ETH worth about $2 million to the sanctioned crypto mixer Tornado Cash.
Outdated Smart Contract Exploited
Yearn Finance made a statement after initial checks and stated that the hack was limited to an outdated smart contract before V1 and V2 called iearn. According to Yearn Finance, their current contracts and protocols were not affected by the exploit. Aave also confirmed they were aware of the exploit and that none of their versions were affected by it either.
Price Of YFI Token Dropped But Recovered
The price of yearn.finance (YFI) token dipped to about $8,945 immediately after news about the hack broke but has since recovered back up to $9,094 at press time. The token was still about 2% below yesterday’s trading level although it is still over 7% higher compared with its performance for last seven days.
This latest exploit highlights how important blockchain security is for DeFi platforms like Yearn Finance and Aave in order for them remain secure from hackers who are constantly looking for ways take advantage of vulnerabilities or weaknesses in protocol or code base used by these platforms or applications developed on top them .