Yearn.Finance (YFI) DeFi Was Vulnerable to Flash Loan Attack; Are Funds SAFU?

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.iearnfinance $YFI pays $200,000 bug bounty as white-hat hacker reported design flaw through immunefi Yearn

SingleSidedBalancer strategy is designed to allow DeFi enthusiasts to farm Balancer's native currency BAL providing single-asset liquidity. SSBs are active on Ethereum and Fantom blockchains.

The attack design was used to allow hackers to imbalance the Balancer pool and obtain USDT at an inflated price as only SSB strategy on yvUSDT was found to be profitably exploitable.for more than $41 million in equivalent.As per the detailed explanation shared in Yearn.Finance's security repository on GitHub, the vulnerability was patched in 25 minutes as all exploitable elements were disabled; no funds are at risk now.

By Feb.11, all vulnerable strategies were updated by Yearn.Finance and Balancer. As the possible vulnerability is of a 'Critical' category, on Feb. 2 the white-hat attacker was rewarded with a 200,000 USDC bounty bonus. As covered by U.Today previously, on Feb.10, the team of the Optimism scaling solution for Ethereum paid $2 mln to Mr. Jay Freeman who unveiled the flaw in Optimism smart contracts that would have allowed minting an infinite amount of Ether in every wallet.

 

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