DeFi Protocol YO Protocol Experiences Abnormal Swap Event on Ethereum Chain

Odaily News According to a post by BlockSec on platform X, the DeFi protocol YO Protocol experienced an abnormal swap event on Ethereum, where a user exchanged approximately $3.84 million worth of stkGHO for only about $122,000 USDC. Analysis suggests the incident was caused by a combination of two factors: 1) The initiator submitted an incorrect estimated output value, rendering the slippage protection effectively useless; 2) The transaction path was set abnormally, routing through a pool with high fees and low liquidity, resulting in significant fee extraction and price impact. The team has currently purchased GHO and redeposited it as stkGHO in an attempt to remedy the situation.