Aave Yearn Finance Suffers $10 Million DeFi Exploit: What Happened?

The digital asset industry witnessed another blow today as DeFi protocols Aave and Yearn Finance have been reportedly exploited. The latest DeFi hack targeted Aave and Yearn Finance protocols, with exploiters stealing over $10 million in stablecoins, according to PeckShield.

A vulnerability likely impacted DeFi protocols Yearn Finance and Aave today, according to PeckShield. PeckShield explained that a misconfigured yUSDT token possibly triggered the exploit. Lookonchain’s data suggest that the exploiter may have managed to rake in more than $10 million in stablecoins DAI, USDC, BUSD, USDT, and TUSD.

Yearn Finance Exploit Details

An exploit involving an early version of the DeFi protocol Yearn Finance, called iearn, took place earlier today, causing damages of $11.6 million, according to PeckShield. The exploiter has already drained over $10 million in stablecoins from the Yearn Finance protocol. A bug in a token issued by decentralized finance (DeFi) protocol Yearn Finance was impacted in an exploit this morning, security firm PeckShield tweeted, leading to significant losses.

Aave's Response

Aave noted in a tweet that Aave V1, V2, and V3 were not affected by this exploit. While the vulnerability impacted a token associated with Yearn Finance, Aave assures users that their core protocols remain secure.

PeckShield's Analysis

PeckShield continues to investigate the exploit and provide updates on their findings. Their initial analysis points to a misconfiguration that allowed the attacker to drain funds. Stay tuned for more details as the investigation unfolds. The hack led to a $10 million loss, highlighting the ongoing risks in the DeFi space.