Yearn.Finance puts expanded treasury to use by repaying victims of $11M hack


Major decentralized finance protocol Yearn.Finance (YFI) has restored its yDAI vault in the aftermath of a $11 million exploit by hackers.

Yearn announced Tuesday that they opened a Maker vault with YFI tokens from the treasury and minted 9.7 million DAI tokens from the vault to keep the yDAI vault intact. Using borrowed money allows the project to reimburse users without taking a hit to the treasury, either due to possible YFI appreciation or by gradually repaying the debt with protocol revenue. The team said that this is 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.

How To Get Free Crypto  

The yDAI vault’s exploit was accompanied with a 15% crash in the price of Yearn Finance’s governance token in less than two hours, with YFI subsequently dropping from $35,000 to as low as $29,600. At the time of writing, YFI is trading at $31,747, down 2.4% over the past 24 hours.

Despite the brief crash, the total value locked in Yearn remained somewhat steady, with its TVL staying above the levels of January 2021 and December 2020. At publishing time, Yearn’s TVL amounts to $481.8 million, up around 1% over the past 24 hours, according to data from DeFi Pulse. Yearn is the 14th largest DeFi protocol by TVL at the time of writing.

The restoration of yDAI vault comes a couple of days after Yearn reported that its V1 version of yDAI vault was exploited by a hacker on Feb. 4. The exploit reportedly caused a loss of $11 million, though the attacker failed to reap most of the loot, with just 513,000 DAI and $1.7 million USDT going to the perpetrator.

Source: DeFi Pulse

As previously reported by Cointelegraph, core core contributors and community members submitted and passed a proposal to increase the supply of YFI by 6666 tokens, or about $225 million at the time of proposal. The proposal is part of a wider discussion about incentives for DeFi developers, with the community feeling like its contributors were not being properly incentivized amid much larger war chests from competitors.

Coinbase Banner  

The latest exploit is not the first attack targeting Andre Cronje-backed DeFi protocols. In September 2020, Eminence, an unreleased project being built by Yearn’s Andre Cronje, suffered a $15 million exploit.

Go to Source
Author: Helen Partz

Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.