Crypto News – By taking advantage of Yield Protocol, the now-defunct DeFi lending protocol, and smart contracts, hackers were able to drain off funds.
Yield Protocol Hack: $181K Stolen by Hacking the Defunct Protocol’s Pool
Yield Protocol repeatedly instructed investors to cancel their positions, withdraw their money, and settle outstanding loans after the wind-down. An unidentified hacker took almost $181,000 worth of cryptocurrency assets from Yield’s strategic contracts on the Arbitrum blockchain in spite of the warnings. PeckShield, a blockchain investigative firm, originally revealed the attack, and CertiK later verified it.
The attacker exploited a discrepancy between the pool token balance and total supply with flash-loaned assets and then withdrew extra pool tokens.
CertiK
Yield Protocol Closing Process
Due to a lack of business demand and pressure from international regulations, Yield Protocol closed its doors in December 2023. Following the attack on the noncustodial lending protocol Euler Finance in March 2023, the Yield Protocol, and ten other decentralized finance protocols experienced losses. Although there has been a history of revival, official backing for the Yield Protocol terminated on February 2.
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