yEarn.Finance will reimburse the damage from the attack to insured users


The founder of the DeFi project yEarn.Finance, Andre Cronje, promised to return the funds lost as a result of the hacker attack to those who purchased an insurance policy from Nexus Mutual and Cover Protocol partners. For other users, the question remains open for now.

On February 5, an unknown attacker managed to get about $2.8 million with the help of instant loans (flash loans). The pool lost about $11 million – stake holders and liquidity providers of the Curve Finance protocol received $3.5 million each, $1.4 million was spent on commissions in the Aave project.

“In general, you invest in yEarn.Finance at your own risk.

If you want to protect yourself from attacks in the future, consider buying insurance in Nexus Mutual and Cover Protocol,” the developers wrote.

At the moment, the team is exploring the option of creating CDP (secured debt positions) with the participation of the YFI token. The commissions received will be used to cover the resulting losses. The developers suggested that the victims refrain from withdrawing funds until the completion of work on this solution.

At the time of writing, YFI is trading at $31,564. According to CoinGecko, the token has increased in price by 2.4% over the past week, ignoring the rally in the sector.

At the end of 2020, the creator of yEarn.Finance, Andre Cronje, presented a new DeFi project – yCredit. Later, the developers discovered a critical vulnerability in it, allowing them to withdraw all user funds.

Recall that the creators of the Warp Finance DeFi protocol recovered 75% of the funds stolen as a result of the December 18 attack.