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The digital asset sector encountered a setback today as reports emerged that DeFi protocols Aave and Yearn Finance had been exploited, resulting in a loss of $10 million, as per PeckShield.
The hacker acquired various stablecoins, including BUSD, USDC, TUSD, USDT, and DAI.
Hi @AaveAave @iearnfinance, you may want to take a look: https://t.co/61wSYHqwvs
— PeckShield Inc. (@peckshield) April 13, 2023
Blockchain analyst, Lookonchain later disclosed that the hacker had made off with 3,032,142 DAI, 2,579,483 USDC, 1,785,091 BUSD, 1,512,528 TUSD, and 1,193,756 USDT, which amounted to more than $10 million.
An exploiter attacked @iearnfinance and @AaveAave.
The exploiter got over $10M in stablecoins.
Including:
– 3,032,142 $DAI
– 2,579,483 $USDC
– 1,785,091 $BUSD
– 1,512,528 $TUSD
– 1,193,756 $USDThttps://t.co/nT0PhL1cDC pic.twitter.com/ukOQagk1n5— Lookonchain (@lookonchain) April 13, 2023
The response from the community was concerning, with several advising users to withdraw their funds from Aave. However, Marc Zeller, the founder, reassured everyone that the attack had been directed at version 1 of the protocol and that the team was looking into the matter.
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Zeller noted that the current size of V1 was $18 million while the size of the safety module was $382.50 million, which would aid in compensating users for their losses. It appeared that the attacker had targeted older protocols. Similarly, the Yearn Finance team confirmed via Twitter that Yearn v2 vaults had not been affected by the hack.
As a result of the hack, the prices of Aave and Yearn Finance’s native tokens experienced a minor setback. AAVE declined by 3% during the incident but has shown signs of recovery. YFI, on the other hand, dropped to a low of $8,936 from a high of $9,375 but is currently trading at $9,007.53.