$14 Million Gone in Yearn Finance Exploit – Decrypt

DeFi lending project Yearn Finance has been hit by an exploit that has affected a DAI lending pool, according to its Twitter account.

The tweet, posted at around 5 PM Eastern US time, states: “We have noticed the v1 yDAI vault has suffered an exploit. The exploit has been mitigated. Full report to follow.”

Yearn developer banteg, one of the administrators of the DeFi project’s website, followed with a few more details: “Yearn DAI v1 vault got exploited, the attacker got away with $2.8m, the vault lost $11m. Deposits into strategies disabled for v1 DAI, TUSD, USDC, USDT vaults while we investigate.”

The trading price for the YFI governance token fell sharply on the news, plummeting from $34,700 to $30,500 in minutes (though it’s since rebounded slightly).

Yearn aggregates DeFi lending protocols such as Aave and Compound to make sure users get the best return on their loan.

This story will be updated as it develops.

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