Yearn Treasury lost 63% LP value due to multisig script error, requesting market return
According to official disclosures, the income aggregation protocol Yearn exchanged 3,794,894 lp-yCRVv2 tokens from its entire treasury balance due to an erroneous multi-signature script operation during a routine fee token conversion process. These tokens strictly belong to the liquidity of the Yearn treasury's protocol (POL) and did not involve any user funds. As this quantity accounted for most of the Curve pool, it resulted in significant slippage losses and the market quickly returned to normal prices. Based on the spot price of lp-yCRVv2 at transaction time, Yearn received 779,958 yvDAI tokens in this transaction, approximately losing 63% of LP value. Given these tokens are crucial for Yearn's yCRV liquidity, Yearn requests any market participants who profited from this error return what they consider a reasonable amount to their main multi-signature address ychad.eth (0xFEB4acf3df3cDEA7399794D0869ef76A6EfAff52). To avoid similar errors in future, Yearn will implement additional security measures including allocating POL funds to dedicated management contracts; making trade script output information more human-readable; enforcing stricter price impact thresholds etc.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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