YO Protocol Suffers $3.84M stkGHO Swap Loss Due to Route Issues

YO Protocol faced a severe discrepancy between expected and actual swap output, prompting recovery efforts through GHO purchases and stkGHO redeposits.

USDC

Summary

YO Protocol experienced a significant loss when swapping $3.84 million in stkGHO for only $122,000 in USDC. The issue was caused by inaccurate output estimates and a high-fee, low-liquidity transaction route. Recovery efforts included purchasing GHO and redepositing stkGHO to mitigate the impact.

Terms & Concepts
  • stkGHO: A staked form of the GHO stablecoin, typically earning rewards while locked in a protocol.
  • USDC: A major U.S. dollar-pegged stablecoin used for transactions and trading.
  • Liquidity: The ease with which assets can be bought or sold without affecting their price.