The founder of the DeFi project yEarn.Finance, André Cronier, has promised to return the funds lost as a result of the hacker attack to those who purchased the insurance policy from partners Nexus Mutual and Cover Protocol. For other users, the question is still open.
https://t.co/f4iX58JDGj
With the reimbursement plan; if you had @NexusMutual insurance & @COVERProtocol cover, you would be reimbursed, and able to claim Nexus and Cover payouts
New version of Cover will be opt-out as part of all vaults, paid for out of yield. No upfront costs https://t.co/uUj7nf4YGA
– Andre Cronje (@AndreCronjeTech) February 7, 2021
On February 5, an unknown attacker managed to obtain approximately $ 2.8 million using flash loans. The pool lost about $ 11 million – the stakers and liquidity providers of the Curve Finance protocol received $ 3.5 million each, and $ 1.4 million was spent on commissions in the Aave project.
In general, investing in Yearn is at your own risk. If you wish to protect yourself from exploits of external protocols in the future, please consider purchasing insurance for your deposits from Cover or Nexus mutual.
— yearn.finance (@iearnfinance) February 7, 2021
“Basically, you invest in yEarn.Finance at your own risk. If you want to protect yourself from future attacks, consider buying insurance from Nexus Mutual and Cover Protocol, ”the developers wrote.
The team is currently exploring the option of creating a CDP (Collateralized Debt Positions) using the YFI token. The commissions received will be used to cover the resulting losses. The developers suggested that the victims refrain from withdrawing funds until the completion of work on this solution.
At the time of writing, YFI is trading at $ 31,564. According to CoinGecko, the token is up 2.4% in price over the past week, ignoring the sector rally.
At the end of 2020, yEarn.Finance creator André Cronier presented a new DeFi project – yCredit. Later, the developers discovered a critical vulnerability in it, allowing the withdrawal of all user funds.
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