Yearn Finance exploited $2.8 millon stolen

Francis Freeman

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Sovryn - Brings DeFi to Bitcoin

Quote from: sgenuine on February 05, 2021, 04:12:52 PM

Quote

I agree, everything about Defi today is just pure hype and despite we have seen them being hack and millions being taken from them, investors are not going to stop though, and that is sad. Instead of making money, the opposite is happening, and the real winner here is the criminals who are going to see loopholes and exploit it.

So it's very risky for everyone, and I do hope that they know what they are doing once they got into the Defi hype.

If DEFI is such a risky and dangerous business why are people giving to it such support. Each of us first of all thinks about profit, realizing that can lose everything at any time. But who, then, invests in dangerous DeFi projects? Inexperienced newbies or, on the contrary, very forward-thinking businessmen?

Defi is still in its experimental stage and its not a finished product by any means so there will be exploits and hiccups on the way. While that is acceptable I hope small time retail investors dont get affected by it. It would be great if these products are covered by some sort of insurance.

el kaka22

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These type of hacks and steals do not make defi nor anything else bad, it makes the projects bad and that's it. This was a hack into Yearn Dai v1 vault and that's it, which makes Yearn Dai Vault unsecure and untrustworthy I agree with that, but that doesn't mean that DeFi got hacked or anything, you can't hack into a DeFi, that is not possible because there is nothing to hack in there, what are you going to do hack into everyone's blockchain and addresses and take their money out? That means you find a weakness in the addresses not the system itself, you could convince some john doe and steal his money, does that make dollars untrustworthy? No it doesn't.

Long story short I believe this is nothing, regular crytpo world had hundreds of millions of dollars stolen, let DeFi world have a few of their own, that is the crypto tradition to start becoming big.

Review Master

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Quote from: Kemarit on February 06, 2021, 09:17:32 PM

So we either mitigate the risk by not investing big money in a defi hype, or just bought coins and tokens and be a bag holder. And going back to the topic, this is very bad news and frustrating to Yearn finance investors.

That's the main thing, we must follow and maintain our portfolio. Back in 2020, all top Defi projects were hacked instead of being audited which is a sign of testing phase of defi projects. By being into fomo isn't a good idea for small investors or crypto hodlers and hodling alts will be profitable in this alt season, but it won't be a good choice to hodl for long run as Bitcoin and Ethereum is the only one which we can hodl for long run, IMHO. TBH, happy to see that YFI team mitigate $24 Million from being drained, but $11 Million is also a huge one.

asriloni

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Quote from: didzi on February 06, 2021, 04:53:18 PM

another bad story coming to defi, maybe this is a warning for all of us
and we should ready for any conditions, including the worst situations like this,,
I hope this incident will not affected the defi market

There's no perfect code and security audit, there will always be vulnerability but it's not discovered yet by the hackers. In this case, the hackers were always using the security loop hole that available on CRV3 wallet to get the stable coin on the flash loan. You must put the amount that you can afford to lose it when you are dealing with defi platforms.
The chance for the worst situation to happen will always there. Anyone should care with their money and the worst thing to go all in on the defi platforms as it's still experimental.
The hackers can easily attack it through vulnerability on the flash loan feature.

Kemarit

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Quote from: Coin_trader on February 06, 2021, 04:19:55 PM

Quote from: Review Master on February 06, 2021, 01:49:28 AM

As we all know that defi projects are so much risky and sometimes, we ignore those warning which is included in the front of that application. But happy to see that stolen usdt is frozen which is confirmed by Paolo Ardoino's tweet and hopefully, team will be able to mitigate. As always, invest which we can effort to lose if anyone want to take risk to get reward from that.

Being centralized of USDT somehow very useful on this kind of scenario. But this event only show that Tether can easily messed up on anyone USDT asset since they have the full control on USDT code.

Back to the point. All cryptocurrency is a risky investment because the volatility of all tokens is so high compared on stockmarket. Maybe the project itself is safe but the value of your holdings is not dump proof.

Yes, it's more volatile than the stock market and there are a lot of potential scams and theft as well.

Just like we've seen again with Yearn finance, hackers stole crypto investors money. And there are no safe net here, once the money is gone, its untraceable. So we either mitigate the risk by not investing big money in a defi hype, or just bought coins and tokens and be a bag holder. And going back to the topic, this is very bad news and frustrating to Yearn finance investors.

didzi

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another bad story coming to defi, maybe this is a warning for all of us
and we should ready for any conditions, including the worst situations like this,,
I hope this incident will not affected the defi market

JNR

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Quote from: Review Master on February 06, 2021, 01:49:28 AM

As we all know that defi projects are so much risky and sometimes, we ignore those warning which is included in the front of that application. But happy to see that stolen usdt is frozen which is confirmed by Paolo Ardoino's tweet and hopefully, team will be able to mitigate. As always, invest which we can effort to lose if anyone want to take risk to get reward from that.

yes, thats the law of investments, if we must invest what we can afford to lose
and we also must think about the risk not only rewards, because a lot of people never think about this kind of risk

Coin_trader

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Quote from: Review Master on February 06, 2021, 01:49:28 AM

As we all know that defi projects are so much risky and sometimes, we ignore those warning which is included in the front of that application. But happy to see that stolen usdt is frozen which is confirmed by Paolo Ardoino's tweet and hopefully, team will be able to mitigate. As always, invest which we can effort to lose if anyone want to take risk to get reward from that.

Being centralized of USDT somehow very useful on this kind of scenario. But this event only show that Tether can easily messed up on anyone USDT asset since they have the full control on USDT code.

Back to the point. All cryptocurrency is a risky investment because the volatility of all tokens is so high compared on stockmarket. Maybe the project itself is safe but the value of your holdings is not dump proof.

blockman

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Quote from: republicrypto on February 05, 2021, 11:32:07 PM

Quote from: blockman on February 05, 2021, 04:29:41 PM

It is really high risk, high reward. But I doubt it that most of the investors of it understand the matter of risk.

no pain, no gain,
and i think defi is only for all kind of people's that ready with the risk,
but remember, if we can pick the right defi project we can make a huge profit
thats why a lot of people still invest their money in defi type project mate
regards

Well, every investor is ready to take risks. Defi or not as long as it's a crypto investment, they are willing to take any risk that they can bear but in defi, it's more different because it's new. But they need to understand that its hype is high and hard to compare it than the other crypto investments.
Hacks and scams are rampant so if they are not aware of those type of risk, they need to appraise before investing.

hd49728

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Quote from: Yaunfitda on February 05, 2021, 06:40:13 AM

I agree, everything about Defi today is just pure hype and despite we have seen them being hack and millions being taken from them, investors are not going to stop though, and that is sad. Instead of making money, the opposite is happening, and the real winner here is the criminals who are going to see loopholes and exploit it.

So it's very risky for everyone, and I do hope that they know what they are doing once they got into the Defi hype.

DeFi tokens are back to rise and rally more. I don't say we can not participate in and get profit but I am more curious that how long the DeFi branch of crypto industry will be dead. I hope it won't last too long after second quarter of 2022.

Quote from: sgenuine on February 05, 2021, 04:12:52 PM

If DEFI is such a risky and dangerous business why are people giving to it such support. Each of us first of all thinks about profit, realizing that can lose everything at any time. But who, then, invests in dangerous DeFi projects? Inexperienced newbies or, on the contrary, very forward-thinking businessmen?

Please reconsider what happen with fraudulent activities, scammers and victims in real life. Do you think scam activities are easy to be recognized? In my opinion, it is easy but many victims are there. They are victims of scammers because they are greedy.

Accept any deal that promises to give you big profits, scammers take advantage of such greedy intention and scam vicitms

Review Master

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As we all know that defi projects are so much risky and sometimes, we ignore those warning which is included in the front of that application. But happy to see that stolen usdt is frozen which is confirmed by Paolo Ardoino's tweet and hopefully, team will be able to mitigate. As always, invest which we can effort to lose if anyone want to take risk to get reward from that.

el kaka22

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www.Crypto.Games: Multiple coins, multiple games

Defi tokens do not have an instinct value, crypto doesn't have any, bitcoin doesn't have any. If you are looking for a logical reason for something to worth something, you are not going to be really comfortable with it in crypto world, there is no such thing here. At the end of the day we are in a situation where world requires absolutely no reason to value anything, look at doge and how it got sky high just because people pumped it and made some profit with it, they wanted it and they did it, so there was no reason for it to even be there.

Defi is not risky at all aside from getting hacked left and right and you may find that bad but crypto was like that for the longest time, even today there are crypto hacks, we just need to give defi sometime to figure out how to prevent it but this is not based on blockchain hacking, it Is a third party hacking as we all can imagine.

republicrypto

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Keep it Simple guys :)

Quote from: blockman on February 05, 2021, 04:29:41 PM

The Defi investors should think of this right now if it's still worth a shot to invest in those. This isn't the first time that we've heard of defi hacks and exploited millions of investors' money.

Quote from: ?? on ??

all the defi platforms offer more or less interesting / promising earnings but they are also at high risk for a hack can happen anywhere as in the example even to larges platforms, i would only make short investments perhaps a little less risky

It is really high risk, high reward. But I doubt it that most of the investors of it understand the matter of risk.

no pain, no gain,
and i think defi is only for all kind of people's that ready with the risk,
but remember, if we can pick the right defi project we can make a huge profit
thats why a lot of people still invest their money in defi type project mate
regards

VanDeinsberg12

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This is why I really doubtful about investing on such platform because there's no prove that their system is well made and well secured.
in my opinion there should be lesser defi platform but more well tested on security side instead of people creating more and more platform but there's too much hole in it. it's hard to trust such platform if every month comes out news about hacking and millions of dollar vanish into thin air.

LogitechMouse

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Things like this in crypto space isn't new already.
These are just signs that they need to upgrade their security if they don't want to get exploited, hacked etc.

The price of YFI went down from ~$34,000 to ~$30,000 after what happened. Not a huge drop though IMO knowing that it has a very small supply. Holders chose to hold it instead of selling it out of panic.

poodle63

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Quote from: Billo_ on February 05, 2021, 07:37:34 PM

Yearn Finance needs to be more secured but I'm sure it will be sucessfully secured, Andre is a very experienced computer scientist and will have an idea how to fix it. But it need to be required to prevent again or people will lose trust in Yearn Finance.
It is already very risky to use DeFi, especially Yearn and similar projects where people are vulnerable frequently but risk needs to be limited at lowest limits possible.

I hope Yearn Finance will do well.

Defi platforms still at early stage, they prone to have exploits everywhere and as good as andre is as a computer scientist there's always exploit that's still undiscovered that'll become disaster in the future once some people who trying to tinker with the platform discovers it.
I'd expect to see any more exploit coming up but by gradually fixing it, I'm sure those defi platforms will eventually turns out to be mature and secure.

TravelMug

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Echo the sentiments here, this is really bad news for altcoin and the Defi market as again, investors are losing huge amount of money to hackers. I'm not sure what the loophole has been, or why the Yearn Finance team didn't see this coming, but this will give the problem a bad PR.

But checking the price, now, it doesn't seems to be affected by the hack though, perhaps it has been resolved or patch, but we don't know yet if they were able to get back that $2.8 million that the criminals have stolen.

Billo_

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Yearn Finance needs to be more secured but I'm sure it will be sucessfully secured, Andre is a very experienced computer scientist and will have an idea how to fix it. But it need to be required to prevent again or people will lose trust in Yearn Finance.
It is already very risky to use DeFi, especially Yearn and similar projects where people are vulnerable frequently but risk needs to be limited at lowest limits possible.

I hope Yearn Finance will do well.

BayAngelo

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No wonder YFI has been on the decline and has not make any serious price movement. i think this hack of a thing is not stopping at any thing. project developers should tighten up their platform to avoid people loosing their funds. these are the bad side of crypto and they will affect Defi in the long run if this is not properly dealth with. Good move by USDT Tether to block the stolen funds immediately.

k@suy

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Quote from: cryptomaniac_xxx on February 05, 2021, 03:32:23 AM

So there's another Defi hack, and it was reported to have been at the tune of #2.8 million as per this tweet,

https://twitter.com/bantg/status/1357453626847952896

So let's see how it goes, seems that the team behind are working very hard to mitigate.

There's a bad news regarding yearn but the market is not dumping too much at least few hours after the said news was published, but then let's see for more price movement that will happen less than 1hr from now and let us wait for the action of yearn to what happen and how do they will make a move with this big loss on their part that will make their value dump it is not taken care of. Every coin who reportedlt to be hacked dumps its price in the latter hrs.

Topic: Yearn Finance exploited $2.8 millon stolen (Read 246 times)