Yearn.Finance Ask Traders to Return Gains Following $1.4 Million Multisig Error – What’s Going On?
Decentralized finance (DeFi) protocol Yearn.Finance has called on arbitrage traders to return excess profits they accrued as a result of a multi-signature scripting error that led to a $1.4 million drain.
In a Dec 11 GitHub post, the protocol’s contributor, “dudeshan” disclosed that during a fee token conversion, the multi-signature mishap caused the company’s treasure balance of 3,794,894 lp-yCRVv2 tokens to be swapped.
Although it was revealed that the tokens swapped solely affect the protocol’s treasury without users, the revelation sparked diverse reactions amid the recent attack on bridges on other forms of cryptocurrency platforms incidents.
“This amount was strictly protocol-owned liquidity (POL) belonging to Yearn’s treasury and does not contain any user funds. This amount comprised a large portion of the Curve pool, and therefore incurred significant slippage which arbed back to the normal price by the market shortly after.”
The platform’s liquidity pool plummeted 62% relative to the spot price after it suffered massive slippage following a receipt of 779,958 DAI yVauly tokens.
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