The Yearn Finance V2 Vault Does Not Appear To Be Affected By The Attack

Key Points:

• An attack using a defect in a Yearn Finance token leads to millions of dollars in damages.
• However, Yearn V2 was not affected by the attack.
• Aave also confirmed that there was no damage.

As Coincu reported, the DeFi protocols Aave and Yearn Finance are under assault from a flash loan attack.

Yearn Finance reposted protocol creator @storming0x’s tweet, in which he indicated that the presently known flaws do not seem to be connected to the Yearn heritage protocol and liquidity pool, which were introduced in 2020. Yearn v2 Insurance Libraries seem to be unaffected, and Yearn contributors are looking into it.

A bug in a token released by the decentralized finance (DeFi) system Yearn Finance was exploited this morning, according to security company PeckShield, resulting in millions of dollars in damages.

Samczsun, a pseudonymous crypto researcher, stated that Yearn Finance’s version of USDT, known as yUSDT, has been broken since it was launched three years ago. He said that it had been misconfigured to utilize the Fulcrum iUSDC token rather than the Fulcrum iUSDT token.

This was confirmed by PeckShield. According to the report, the fundamental problem seems to be a misconfigured yUSDT. This was used to create 1.2 quadrillion yUSDT from just $10,000. This was then converted into cash by exchanging it for other stablecoins.

Moreover, Yearn Finance has suffered a loss of around $11.6 million as a result of today’s assault.

The exploit was initially considered to target Aave V1. Nevertheless, Aave developers said that the protocol was unaffected and that it was only utilized to transfer tokens in order to carry out the hack, which primarily included Yearn Finance’s yUSD stablecoin. Aave said in a tweet that the assault had no effect on Aave V1, V2, or V3.

The assault on Aave and Yearn follows the SushiSwap exploit, which resulted in the loss of $3.3 million in assets last week.

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Harold

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