Yearn Finance Uses Treasury to Mints 9.7M DAI to Repay yDAI Vault Hack Victims
The Yearn Finance team has restored the yDAI vault and will repay users who lost over $11 million in a hack earlier in the week. According to the official Twitter account, the team created a Maker vault and deposited over YFI tokens from its Treasury that was just voted to increase supply by 6,666 to mint yDAI.
According to the official Twitter account, the team created a Maker vault and deposited over YFI tokens from its Treasury that was just voted to increase supply by 6,666 to mint yDAI.
The 14th largest decentralized finance (DeFi) project, Yearn Finance, announced this Tuesday that victims of the $11 million DAI hack in its yDAI vault would be refunded. This follows the opening of a new Maker vault and depositing YFI to mint DAI.
The company minted a total of 9.7 million DAI after taking out YFI from its Treasury and placing it in a Maker vault. The rest of the amount was recovered after Tether froze out $1.7 million USDT stolen by the hackers. The Yearn security team saved over 24 million DAI of the 35 million locked in the yDAI vault AUM.
yDAI vault restored!
Yearn has opened a Maker Vault with YFI from the Treasury to mint 9.7m DAI and make the yDAI vault whole.
It was done as a one-off celebration of going through this DeFi rite of passage. Don’t count on it happening again. Make sure to buy Cover next time. pic.twitter.com/6xNh3XEVYZ
— yearn.finance (@iearnfinance) February 9, 2021
Despite paying off the losses, the Yearn finance ecosystem has remained stable, mostly due to YFI price appreciation, but the team has warned against the refund happening again.
“It was done as a one-off celebration of going through this DeFi rite of passage,” Yearn Finance core development team tweeted in response to the hacked funds being returned.
“Don’t count on it happening again.”
The team urged the investors on every vault to move swiftly and purchase an insurance cover from Cover Protocol, built in the Yearn ecosystem. Ironically, the insurance platform was also hacked just last December, with the hackers printing over 40 quadrillion Cover tokens.
Yearn’s native token, YFI, is currently trading 6.65% up in the past 24 hours at $34,872 as of the time of writing. The total locked value (TVL) remained largely unchanged despite the hack at $450 million in assets, down 0.05% in value over the past day.