Yearn.finance Seeks Return of $1.4 Million Lost in Scripting Error
Decentralized finance protocol Yearn.finance is facing a loss of $1.4 million after a scripting error caused a significant portion of its treasury to be drained. The error occurred during the conversion of Yearn’s yVault LP-yCurve tokens into stablecoins on decentralized exchange CowSwap.
Treasury Loss and Recovery Efforts
The faulty multisignature script resulted in Yearn experiencing slippage and a 63% decrease in liquidity pool value. However, it is important to note that only the tokens owned by the protocol were affected, and user funds remained secure.
Yearn is now appealing to arbitrage traders who profited from the error to return a reasonable portion of their earnings to the protocol’s main multisignature address. One trader has already returned 2 Ether (ETH) valued at $4,500.
Preventing Future Errors
To prevent similar incidents in the future, Yearn plans to separate protocol-owned liquidity into specific manager contracts, implement human-readable output messages, and enforce stricter price impact thresholds.
Hot Take: Yearn.finance Faces Losses Due to Scripting Error
Yearn.finance has suffered a loss of $1.4 million due to a scripting error that caused a significant drain on its treasury. While customer funds were not impacted, Yearn is urging traders who benefited from the error to return a reasonable amount of their profits. The protocol is taking steps to prevent future errors by implementing stricter measures and separating liquidity into specific contracts. This incident highlights the importance of robust security measures in decentralized finance protocols.
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