The decentralized finance (DeFi) ecosystem is hit with yet another exploit.
A recent hack in the decentralized finance (DeFi) ecosystem allowed an attacker to mint a staggering one quadrillion Yearn Tether (yUSDT) from just $10,000, which was then exchanged for other stablecoins.
The news was initially revealed by blockchain security firm PeckShield on Twitter, which claimed that Yearn Finance lost around $11.6 million.
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The hacker managed to obtain almost $12 million in various stablecoins, including 3 million Dai (DAI), 2.58 million USD Coin (USDC), 1.79 million Binance USD (BUSD), 1.5 million TrueUSD (TUSD), 1.2 million Tether (USDT), and 61,000 Pax Dollar (USDP).
The firm also discovered that the attacker transferred 1,000 Ether (ETH) worth around $2 million to the sanctioned crypto mixer Tornado Cash.
Upon being notified by PeckShield, both Aave and Yearn Finance commented on the news.
Yearn Finance initially found that the compromised contract was an outdated iearn contract, which came before the introduction of Vaults V1 and V2. As a result, the current Yearn Finance contracts and protocols remain unaffected by this incident.
Aave also confirmed that their Aave V2 and V3 protocols were not impacted by the hack. In a tweet, the company noted:
We are aware of this transaction, and it did not have an impact on Aave V2 and Aave V3. We are now confirming whether there is any impact on Aave V1, the oldest version of the protocol which has been frozen. We're monitoring the situation closely to ensure no further concerns.
However, later on, the company issued a separate tweet claiming that "Aave V1 was not impacted."
At the beginning of April, DeFi bridge Allbridge lost around $500,000 in crypto after malicious actors manipulated the BNB Chain pool swap prices by simultaneously acting as liquidity providers and swappers.
