The decentralized finance protocol team Yam Finance announced that an attacker, using a community vote in the protocol, nearly emptied the crypto platform’s storage.
DeFi developers have thwarted a cyberattack aimed at transferring control of the project’s reserves to an unknown third party. Yam Finance admits that the hacker attacked the project on July 7, and only two days later the team discovered the hack.
The attacker presented a proposal to control the protocol using an internal transaction, so the team and community members did not suspect a cyber attack in time. The malicious offer included an unverified smart contract designed to transfer control of Yam Finance’s reserves to a wallet address controlled by the attacker. The scammer would have been able to assemble a quorum for the proposal to be accepted by the majority of the community, but it was noticed by the Yam Finance team.
If the attack were successful, an unknown person could empty the treasury of Yam Finance, which now holds $3.1 million worth of crypto assets. The protocol team reported that they had already encountered a similar attack in 2021.
The attack was possible against the backdrop of a struggle to manage the Yam Finance ecosystem associated with the project’s repository. The current model was approved by a majority (over 54%), but now some members of the community have put forward a proposal to re-vote.
In 2020, the YAM Finance decentralized finance project team, after passing the audit, announced the launch of the third version of the protocol.
Source: Bits
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