Popular DeFi Protocol Hacked? Statement from the Developers

security firm PeckShielddecentralized finance (DeFi) protocols Aave and Yearn Finance tweeted this morning that he was possibly affected by a security vulnerability.

“DeFi Protocols Lose Over $11 Million”

Data shows that losses could total over $11 million.

According to PeckShield, the attack involved the flash credit attack, a type of arbitrage strategy that allows users to borrow money without collateral and repay it within the same transaction.

what @AaveAave @iearnfinanceyou may want to take a look: https://t.co/61wSYHqwvs

— PeckShield Inc. (@peckshield) April 13, 2023

Relevant Statement Received

Although it was stated from the Aave front that there might be this problem in V1 at first, it was stated that they were not affected by the problem afterwards. The description is as follows:

“We are aware that the vulnerability had no impact on Aave V2 and Aave V3. We confirm whether it has any impact on the oldest version of the protocol, Aave V1. We are closely monitoring the situation to avoid any further problems.

And then:

We can confirm that Aave V1 is also unaffected.” statement was made.

We can confirm that Aave V1 was not impacted. More details below:https://t.co/8a7tTHuydm

— Aave (@AaveAave) April 13, 2023

Yearn Finance, on the other hand, acknowledged the attack, stating that it only occurred in older versions released in 2020.

We are aware of an issue that seems isolated to the iearn legacy protocol launched in 2020 and liquidity pool.

Yearn v2 vaults seem not to be impacted.

Yearn contributors are investigating.

Further comms to follow on main account. https://t.co/CKddWwjFj8

— Storm Blessed 0x 🇯🇵 (@storming0x) April 13, 2023

*Not investment advice.