Yield-farming protocol Yearn Finance lost $1.4 million due to an erroneous transaction, but said it did not impact users.
According to the statement made on Github, the incident occurred “during an ordinary token conversion process on behalf of the Yearn treasury.”
Due to a faulty code, 3,794,894 lp-yCRVv2 tokens were exchanged for 779,958 yvDAI tokens.
yCRV, one of Yearn’s most popular products, represents 1 CRV in Yearn’s pooled and CRV position. Yearn supports this product by holding a large amount of liquidity in lp-yCRVv2.
In the statement made, “This amount is the liquidity owned by the protocol, which belongs entirely to Yearn’s treasury, and there are no funds belonging to users in it.” It was said.
Taking into account the 779,958 yvDAI received during the transaction, this position in the pool lost 63 percent of its value due to slippage.
Team, “Given that these tokens are critical to Yearn’s yCRV liquidity He made arbitrage by taking advantage of this mistake. We want everyone to refund the main multisig they use with Yearn in the amount they see fit.” said.