yEarn.Finance reimbursed the pool losses after the attack

Anonymity Online

The DeFi project yEarn.Finance has made up for the damage caused to the v1 yDAI pool as a result of an attack by an unknown attacker on February 5.

The hacker got about $2.8 million with the help of instant loans (flash loans). The pool lost about $11 million.

“yEarn opened the Maker repository, using [token] YFI from reserves to issue 9.7 million DAI and replenish yDAI,” the developers wrote.

Representatives of the project ruled out the possibility of a repeat of such a storage recovery scheme. They urged users to insure deposits using the DeFi-protocol Cover, with which yEarn.Finance joined forces in November 2020.

On February 8, The Block analyst Igor Igamberdiev reported that the attacker began selling stablecoins withdrawn from the yDAI pool on the decentralized Uniswap exchange for Ethereum. He sent the coins to the Tornado Cash mixer.

Over the past day, the price of the YFI token has increased by 19.4%. At the time of writing, the coin is trading at $38,160, according to CoinGecko.

Recall that the founder of yEarn.Finance, Andre Cronje, promised to return the funds lost as a result of the hacker attack to users insured with Nexus Mutual and Cover Protocol partners.