Curve Finance Kills the New yv2 Pool After Discovering an Issue
Both Curve and Yearn team assure that “All funds are safe,” and no other vaults are affected.
Decentralized exchange Curve Finance reported an issue with its new trading pool that involves the DeFi protocol Yearn Finance. Curve reported the vulnerability on Monday morning, further announcing the shut down of the pool. The team noted,
“We have discovered an issue with the new yv2 (@iearnfinance) pool. The pool has been killed in order to protect LPs.”
But they assured that the issue wasn’t fundamental and there has been no loss of funds. Additionally, the funds will be returned to the addresses that supplied them. The team added,
“All funds are safe. Deposits will be sent directly to liquidity providers' wallets, no further action is required to withdraw.”
The popular stablecoin DEX, Curve, launched in 2020, is the fourth largest DeFi protocol by total value locked (TVL) of $3.85 billion. The native token of the project is currently trading around $3.19, putting its market cap at $680 million.
Curve basically allows users to swap between stablecoins like DAI, USDT, and USDC at low fees and slippage. Users who provide liquidity on the platform earn yields on an annual basis, which comes from the interest paid by stablecoin borrowers.
Today’s issue with Curve was specifically regarding the yearn “v2” pool that got exploited. Yearn Finance is a yield aggregator that saw its “v1 yDAI vault” exploited just last week and lost more than $11 million in the process.
While the attacker got away with $2.8 million, Tether CTO Paolo Ardoino announced that Tether, “a centralized stablecoin using blockchains as transport layer,” had frozen the stolen 1.7 million USDT.
“Recent yv2 pool issue doesn’t affect any of yearn vaults. Funds are safe,” assured the Yearn team on the latest issue with the “v2” pool.
Yearn’s YFI token has a market cap of $1.16 billion and, as of writing, is trading around $31,800.