Arbitrum

Yield Protocol

Euler

Million

Yield

Hackers recently exploited smart contracts from the defunct decentralized finance (DeFi) lending platform Yield Protocol, managing to siphon off around $181,000 worth of cryptocurrency assets.&nbsp;
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 <a href="https://twitter.com/hashtag/CertiKInsight?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="external">#CertiKInsight</a> 🚨 We have seen an exploit on <a href="https://twitter.com/yield?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="external">@yield</a> strategy contracts on Arbitrum for ~$181K. The attacker exploited a discrepancy between the pool token balance and total supply with flash-loaned assets and then withdrew extra pool tokens. Stay Vigilant! <a href="https://t.co/9cLDWt0e3f" target="_blank" data-wpel-link="external" rel="noopener noreferrer nofollow">pic.twitter.com/9cLDWt0e3f</a>— CertiK Alert (@CertiKAlert) <a href="https://twitter.com/CertiKAlert/status/1785139969121739123?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="external">April 30, 2024</a>
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Although Yield Protocol had closed down in December 2023 due to business demand challenges and regulatory pressures, it repeatedly advised investors to close their positions, withdraw funds, and settle pending loans.
Despite these warnings, an unknown hacker successfully targeted Yield Protocol’s smart contracts on the Arbitrum blockchain. The hack was initially reported by PeckShield, a blockchain investigation firm, and later confirmed by CertiK.
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 Hi <a href="https://twitter.com/yield?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="external">@yield</a>, you may want to a look (w/ $181K) <a href="https://t.co/wbzVgrvyyy" target="_blank" data-wpel-link="external" rel="noopener noreferrer nofollow">pic.twitter.com/wbzVgrvyyy</a>— PeckShield Inc. (@peckshield) <a href="https://twitter.com/peckshield/status/1785121607192817692?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="external">April 30, 2024</a>
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After further investigation, CertiK discovered that the attacker took advantage of a difference between the pool token balance and total supply using flash-loaned assets, allowing them to withdraw extra pool tokens. Unfortunately, since official support for the <a href="https://twitter.com/yield/status/1753418896730714123" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="external">Yield Protocol</a> ended on February 2, attempts to recover the stolen funds seem unlikely.
In March 2023, Yield Protocol, along with 10 other decentralized finance protocols, faced losses due to an attack on the noncustodial lending platform Euler Finance. However, by July 2023, Yield Protocol had fully recovered from the attack.
During the recovery, Yield Protocol collaborated with Euler to return the funds. They deployed 26 new contracts and executed about 300 permissioned calls to reset the fixed-yield token maturities and restore the protocol’s functionality.
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
 Also Read: <a href="https://www.cryptotimes.io/2024/04/25/aligned-layer-secures-20-million-in-funding-led-by-hack-vc/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">Aligned Layer Secures $20 Million In Funding Led by Hack VC</a>
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Dead DeFi Protocol Yield Leaks Crypto Funds in Hacked Pool

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