The DeFi project yEarn.Finance has reimbursed the damage caused to the v1 yDAI pool as a result of an attack by an unknown attacker on February 5.
yDAI vault restored!
Yearn has opened a Maker Vault with YFI from the Treasury to mint 9.7m DAI and make the yDAI vault whole.
It was done as a one-off celebration of going through this DeFi rite of passage. Don’t count on it happening again. Make sure to buy Cover next time. pic.twitter.com/6xNh3XEVYZ
— yearn.finance (@iearnfinance) February 9, 2021
The hacker obtained approximately $2.8 million via flash loans. The pool lost about $11 million.
“yEarn opened the Maker vault, using the [token] YFI from reserves to mint 9.7 million DAI and restore the yDAI vault,” the developers wrote.
Representatives of the project ruled out the likelihood of a repetition of such a vault-recovery scheme. They urged users to insure deposits using the DeFi protocol Cover, with which yEarn.Finance joined forces in November 2020.
On February 8, The Block analyst Igor Igamberdiev said that the attacker began selling the yDAI-stablecoins taken from the pool on the decentralized exchange Uniswap for Ethereum. He sent the coins to the Tornado Cash mixer.
yDAI Vault exploiter started selling DAI through Uniswap and depositing ETH in @TornadoCash pic.twitter.com/41ky2BFE3Z
— Igor Igamberdiev (@FrankResearcher) February 8, 2021
In the last 24 hours the price of the YFI token rose by 19.4%. At the time of writing the coin was trading at around $38,160, according to CoinGecko.
Founder Andre Cronje promised to return the funds lost in the hacker attack to users insured with partners Nexus Mutual and Cover Protocol.
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