Yearn: A multi-signature script error caused a treasury loss of US$1.4 million, but user funds were not affected

Odaily News Yearn Finance issued a statement stating that during the regular fee token exchange process in the Yearn treasury, an incorrect multi-signature script caused 3,794,894 lp-yCRVv2 tokens in its treasury to be exchanged for 779,958 yvDAI tokens. Due to slippage Loss of approximately 63% of LP value; losses totaling US$1.4 million, approximately 2% of the entire fund. However, user funds have not been affected, and the Yearn team requests users who profited from the incident to return an amount they consider reasonable to the Yearn main multi-signature wallet. Yearn said that communication channels have been opened and he is looking forward to the return of some funds. Yearn Finance said that in order to prevent similar incidents from happening in the future, protocol developers plan to separate POL funds into specialized management contracts, introduce more user-friendly transaction script output information, and enforce stricter price impact thresholds. (The Block) Yesterday’s news, according to monitoring by X user @wavey0x, a defective multi-signature script the day before caused the liquidity balance of yCRV LP tokens owned by the Yearn protocol to be exchanged, causing significant slippage losses. Strictly speaking, this amount belongs to the POL of Yearns treasury and does not involve user funds.