Founder of the DeFi project yEarn.Finance, Andre Cronje, promised to return funds lost in the hacker attack to those who purchased an insurance policy from Nexus Mutual and Cover Protocol partners. For other users, the question remains open.
With the reimbursement plan; if you had @NexusMutual insurance & @COVERProtocol cover, you would be reimbursed, and able to claim Nexus and Cover payouts
New version of Cover will be opt-out as part of all vaults, paid for out of yield. No upfront costs https://t.co/uUj7nf4YGA
— Andre Cronje (@AndreCronjeTech) February 7, 2021
On February 5, an unknown attacker to obtain approximately $2.8 million using flash loans. The pool suffered losses of about $11 million — stakers and liquidity providers on Curve Finance received about $3.5 million each, while $1.4 million went to fees in the Aave protocol.
In general, investing in Yearn is at your own risk. If you wish to protect yourself from exploits of external protocols in the future, please consider purchasing insurance for your deposits from Cover or Nexus mutual.
— yearn.finance (@iearnfinance) February 7, 2021
In general, you invest in yEarn.Finance at your own risk. If you want to protect yourself from attacks in the future, consider purchasing insurance from Nexus Mutual and Cover Protocol, the developers wrote.
At present the team is exploring the option of creating a CDP (collateralised debt positions) involving the YFI token. The fees collected will go toward covering the losses. The developers urged those affected to refrain from withdrawing funds until this solution is completed.
As of writing, YFI trades at around $31,564. According to CoinGecko, over the past week the token rose 2.4%, shrugging off the sector’s rally.
In late 2020, the founder of yEarn.Finance, Andre Cronje, presented a new DeFi project — yCredit. Later developers found in it a critical vulnerability that could allow the draining of all user funds.
Back in January, Warp Finance’s creators recovered 75% of funds stolen in the attack on December 18.
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