TechFlow, on December 1, according to The Block, Yearn Finance's yETH product (an index token that aggregates liquid staking tokens) was hacked on November 30. The attacker exploited a sophisticated vulnerability to mint an almost unlimited amount of yETH tokens, draining the pool in a single transaction.
Blockchain data shows that approximately 1,000 ETH (worth about $3 million) has been transferred to the mixing service Tornado Cash. Prior to the attack, the total value of the yETH pool was around $11 million; the full extent of losses is currently unknown.
Yearn Finance has confirmed on social media that it is investigating the incident and stated its Vault products (V2 and V3) were unaffected. Notably, the protocol suffered a similar attack in 2021, which resulted in $11 million in losses.
