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DeFi Giants Aave and Yearn Finance Hacked: $10M Lost in Stablecoins

DeFi Giants Aave and Yearn Finance Hacked: $10M Lost in Stablecoins

The digital asset sector encountered a setback today as reports emerged that DeFi protocols Aave and Yearn Finance had been exploited, resulting in a loss of $10 million, as per PeckShield.

The hacker acquired various stablecoins, including BUSD, USDC, TUSD, USDT, and DAI.

Blockchain analyst, Lookonchain later disclosed that the hacker had made off with 3,032,142 DAI, 2,579,483 USDC, 1,785,091 BUSD, 1,512,528 TUSD, and 1,193,756 USDT, which amounted to more than $10 million.

The response from the community was concerning, with several advising users to withdraw their funds from Aave. However, Marc Zeller, the founder, reassured everyone that the attack had been directed at version 1 of the protocol and that the team was looking into the matter.

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Zeller noted that the current size of V1 was $18 million while the size of the safety module was $382.50 million, which would aid in compensating users for their losses. It appeared that the attacker had targeted older protocols. Similarly, the Yearn Finance team confirmed via Twitter that Yearn v2 vaults had not been affected by the hack.

As a result of the hack, the prices of Aave and Yearn Finance’s native tokens experienced a minor setback. AAVE declined by 3% during the incident but has shown signs of recovery. YFI, on the other hand, dropped to a low of $8,936 from a high of $9,375 but is currently trading at $9,007.53.

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.

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