On the Arbitrum blockchain, Yield Protocol’s strategic contracts lost almost $181,000 worth of cryptocurrency.
By taking advantage of Yield Protocol, the defunct decentralized finance (DeFi) lending protocol, smart contracts, hackers were able to siphon off cash.
Yield Protocol closed its doors in December 2023, citing pressure from international regulations and a decline in business demand. Yield Protocol repeatedly instructed investors to cancel their positions, withdraw their money, and settle outstanding loans after the wind-down.
An unidentified hacker took almost $181,000 worth of cryptocurrency assets from Yield’s strategic contracts on the Arbitrum blockchain in spite of the warnings. PeckShield, a blockchain investigative firm, originally revealed the attack, and CertiK later verified it.
Following up with an inquiry, CertiK’s discovered:
“The attacker used flash-loaned assets to take advantage of a discrepancy between the pool token balance and total supply, and then they withdrew additional pool tokens.”
The Yield Protocol’s official support stopped on February 2nd, and while though it has a history of coming back, it appears doubtful that the stolen money will be found.
Yield Protocol was hit by an attack on the noncustodial lending protocol Euler Finance in March 2023, along with ten other decentralized finance protocols. Yield Protocol recovered completely from the Euler flash loan assault by July 2023.
During that period, Yield Protocol reset the fixed-yield token maturities and restarted the protocol by implementing roughly 300 permissioned calls, working with Euler on the return of the funds.
The first quarter of 2024 saw a 23% decrease in losses from hacking and scams compared to 2023, according to a recent analysis from blockchain security company Immunefi.
The research states that in Q1 of 2024, losses from hacking and fraud occurrences were about $336.3 million, compared to $437.5 million in the same quarter of 2023.
In all, 46 hacking instances and 15 fraudulent activity cases are listed in the study. Orbit Bridge suffered the most loss of $81.7 million under the cross-chain bridge protocol.
April 2024, Cryptoniteuae
