In a recent setback for Yearn.finance, a scripting error has resulted in a loss of $1.4 million from its treasury. The error occurred during the conversion of Yearn’s yVault LP-yCurve tokens into stablecoins on the decentralized exchange CowSwap. Due to an oversight in handling treasury funds, the entire treasury balance, including fees, was inadvertently transferred to a trading multisignature, triggering multiple trade orders and a large-scale transaction.
While Yearn.finance confirmed the loss, it emphasized that the affected tokens were strictly protocol-owned liquidity, ensuring that customer funds remained unaffected. The scripting error caused a significant fall in the liquidity pool value from the treasury. The platform is now urging arbitrage traders who may have profited from the error to consider returning a reasonable amount to Yearn’s main multisignature.
This incident is reminiscent of a similar event in April, when Yearn.finance was exploited by a hacker who minted over 1 quadrillion Yearn Tether from a $10,000 investment. Despite these setbacks, Yearn.finance remains resilient and is actively addressing vulnerabilities and strengthening its security measures.
To prevent similar errors in the future, the platform plans to separate protocol-owned liquidity into specific manager contracts, introduce human-readable output messages, and enforce stricter price impact thresholds.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Global |
| Countries | |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | None |
| Companies | Binance, Nansen, Yearn.finance, CowSwap |
| Currencies | None |
| Securities | None |
