Yearn Finance, a popular DeFi protocol, has recently reported that its V1 yDAI has been exploited by a hacker. According to the firm, the hacker was able to carry this attack to the tune of $11 million on February 5, 2020. It is revealed that vault has lost $11 million in this attack, however, Yearn Finance’s developer tweeted that the hacker had a profit of only $2.8 million.
Yearn Finance Suspends Deposits Amid Investigation
Yearn Finance has revealed that they have suspended all the deposits of V1 DAI, USDC, USDT, and TUSD due to an ongoing investigation. The firm has not revealed much details about the attack. Banteg, a developer of the protocol, has stated that until and unless the investigation is completed, the firm will not make any further statement regarding the exploit. According to the analysis shared by Banteg, it is revealed that the hackers were able to steal 513,000 DAI and $1.7 million USDT.
Stani Kulechov, the founder of Aave, has stated that this attack on Yearn Finance has compromised a complex exploit. This involves more than 160 transactions across different DeFi platforms. It is revealed that these platforms were spending the gas fees of $5,000.
YFI Plunges to $29,600 Amid Exploit
Due to this exploit, YFI, the governance token of Yearn Finance, has seen a decline of 15% in its price. The price has now reached a low of $29,600 from $35,000. Even though the price of the token has seen a decline, its total value locked (TVL) seems to be quite stable. Its TVL has seen a fall of just 4% and has reached $507.2 million. This is not the first attack that Yearn Finance has been a target of, the protocol has been attacked multiple times before as well. Not only this, the surge in the DeFi sector has led to an increase in attacks of this kind on different protocols.