DeFi platform Yearn exploits itself, begs for money back
DeFi platform Yearn has lost a large portion of its treasury by swapping all of its lp-yCRVv2 tokens for yvDAI and has asked those who profited from the mistake to return it.
In Yearn’s post-mortem published on Tuesday, it said the problem arose from inadvertently transferring the entire reserve of lp-yCRVv2 to the trading multi-signature wallet, and the script there attempted to swap the entire quantity, experiencing “significant slippage” in the process.
“This amount comprised a large portion of the Curve pool, and therefore incurred significant slippage which arbed back to the normal price by the market shortly after,” Yearn said.
The DeFi platform further described the losses, pointing out “the total loss experienced by Yearn’s treasury comes out to about 63%.”
Yearn highlighted that “the script used by the trading multisig to swap tokens lacked sufficient output checks and contained a logical error that would have capped the trade size to a reasonable amount.”
Read more: Curve exploit shows DeFi still far from decentralized in 2023
Since the mistake, Yearn has begun attempts to reach out to traders who profited from Yearn’s mistake, noting on-chain that “one of yearns multisigs made a costly mistake last night that affected a critical source of yCRVs liquidity.”
“We identified you as having made a profit off of this and are kindly requesting that you return as much as you see reasonable to yearns main multisig: ychad.eth. sorry we have to ask this, but hope you can understand.”
At least one address seems to have decided to send 2 ether ($4,400) back to the treasury, but the rest seem to be waiting for now.
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