Decentralized finance (DeFi) protocol Yam Finance A malicious management attack designed to transfer control of the project reserves to an unknown third party was reportedly averted, according to a statement released by the company.
According to a preliminary report by Yam DAO, the attack was launched on July 7, but was detected two days later. The attacker made it difficult for community members to detect the attack by offering a management proposal through internal transactions.
This malicious management bid included an unverified contract designed to transfer control of Yam’s reserves to an attacker-controlled wallet address.
The villain managed to initially get a quorum for the proposal, which was in danger of being accepted before it was stopped by the Yam Finance team.
Earlier today, there was a governance attack on the DAO that has been thwarted.
An unverified contract was deployed and governance proposal submitted via internal transactions to make it harder to notice.
But the attack was noticed and the proposal has been cancelled. ✔️ pic.twitter.com/DnuK57sF8f
— Yam DAO (@YamFinance) July 9, 2022
Had the Attack Happened, the Entire Chamber of the DeFi Platform would have been Emptyed
If the attack was successful, the attacker is currently worth $3.1 million, according to data from DeepDAO. to cryptocurrency the owner would be able to empty the Yam Finance treasury.
Yam Finance said the attack was similar to another attempt made in December 2021.
Saturday’s hack took place amid yet another management discussion within the Yam ecosystem about the project’s treasury. The issue was another controversial management vote aimed at making the project’s treasury monetizable at a proportional rate.
While the initial instant vote passed by more than 54%, calls are now rising for a rerun of the procedure.
Some community members submitted a new proposal for a re-vote, claiming that the initial vote did not go through the usual administrative procedures.
Yam Finance was one of the projects that emerged in the first DeFi boom of summer 2020. Originally a stablecoin protocol, the project became a DeFi hub after a major error occurred during a transition just two days after the project went live.
*Not investment advice.