Yearn Suffers $8.9 Million Loss from yETH Pool Exploit

Yearn Finance has recovered roughly one-quarter of funds stolen in its $9M stableswap exploit and announced fixes to prevent similar LP token minting vulnerabilities.

WETH

Summary

Yearn Finance disclosed details of a November 30 exploit on its stableswap liquidity pool that enabled attackers to mint unlimited LP tokens and steal about $9 million. The DeFi protocol has since recovered 857.49 pxETH, roughly one quarter of the stolen assets, which will be distributed to yETH depositors. Yearn stated that fixes have been implemented to address the vulnerability and prevent future exploitation.

Terms & Concepts
  • yETH stable pool: A liquidity pool in the Yearn DeFi protocol containing Ethereum-pegged assets, designed to provide stable yield opportunities.
  • LP tokens: Tokens issued to liquidity providers in DeFi pools representing their share of the pool’s assets and earnings.