A leading yield-farming protocol Year Finance (YFI), reported a significant loss to its treasury due to a faulty multisig script.
The event, which occurred during a regular fee token conversion, caused a position in the treasury to decrease by 63%. However, it is important to note that no user funds were affected by this incident.
Bad script, 779.958 yvDAI altcoin It led to the unintended transfer of 3,794,894 lp-yCRVv2 altcoins exchanged with .
For trades cryptocurrency The script used by the multisig wallet to swap the tokens did not have adequate output controls and contained a logical error that could not limit the transaction size to a reasonable amount. This error led to a significant price fluctuation that was quickly corrected by the market.
In an interesting development, Yearn Finance is also appealing to its users who may have profited from the price movement caused by the event. The protocol team is asking these users to return what they think is a reasonable amount to Yearn’s main multisig.
Total losses before returned funds amount to $1.4 million, which is approximately 2% of the entire treasury.
*This is not investment advice.
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