Yearn Finance Lost 1.4 Million USD Due to Programming Error

Yearn Finance lost 1.4 million USD due to programming error

On December 13, yield farming platform Yearn Finance announced an incident in the yCRV liquidity pool, causing Yearn Finance to lose 1.4 million USD, accounting for 63% of the pool’s value.

A programming error appeared during Yearn’s fee token conversion process, causing the project to swap 3,794,894 lp-yCRVv2 but only receive 779,958 yvDAI.

Yearn Finance’s crash notice was posted on GitHub.

Yearn’s transaction caused an imbalance in the yCRV liquidity pool for a short period of time, before stabilizing again as other users joined in and created a price difference. Yearn is calling on those who profited from the incident to “return the corresponding amount to the project’s fund”.

In short, Yearn is said to have lost $1.4 million from this mistake, representing 2% of the DeFi platform’s total funding.

To prevent similar situations from recurring in the future, the Yearn team plans to separate smart contracts that manage liquidity pools, update easily identifiable warning messages, and impose stricter price conditions. .

This is Yearn Finance’s second technical incident in 2023. In April, the old version of Yearn, iearn, was hacked, causing a loss of 11.6 million USD. In November, the price of Yearn’s YFI token experienced strong fluctuations, causing a loss of $9 million to the insurance fund of DEX dYdX.

Chart YFI on Tradingview

1D chart of the YFI/USDT pair on tradinhview at 02:55 AM on December 14, 2023