Aave and Yearn Finance DeFi Protocols Hit by Exploit

Last Updated: 13 April 2023

Decentralized finance (DeFi) platforms Aave and Yearn Finance have reportedly fallen victim to an exploit. PeckShield, a blockchain security firm, alerted Aave to a specific transaction hash and suggested that Yearn Finance was attacked using a flash loan. LookOnChain claims that the attacker made off with over $11 million worth of stablecoins from both platforms. Aave has responded, stating that Aave V1, the oldest version of the protocol, has been frozen since December 2022 and that there have been no known impacts on Aave V2 and V3.

The Attack

According to LookOnChain, the attacker stole 3,032,142 DAI, 2,579,483 USDC, 1,785,091 BUSD, 1,512,528 TUSD, and 1,193,756 USDT. The attacker reportedly mixed stablecoins from both Aave and Yearn Finance. The vulnerability is said to have affected Aave V1.

Aave’s Response

In response to PeckShield’s tweet, Aave has said that it is monitoring the situation closely to ensure no further concerns. Aave V1 has been frozen since December 2022, which means no users can deposit money or increase their credit amount. However, users can repay and withdraw their funds from V1 via the traditional app.

Aave’s head of integration, Marc Zeller, has confirmed that there is currently no known impact on Aave V2 and V3. Zeller has also stated that V1 for offboarding has been discussed, and a snapshot vote will take place shortly for governance to decide on offboarding. The current size of V1 is $18 million, and the current size of the Aave security module is $382.50 million.

Yearn Finance’s Vulnerability

Samczsun, a pseudonymous crypto researcher from Paradigm, claims that Yearn Finance’s version of USDT, called yUSDT, has been broken since its launch three years ago. Samczsun has stated that it was misconfigured to use the Fulcrum iUSDC token instead of the Fulcrum iUSDT token.


The attack on Aave and Yearn Finance highlights the potential security vulnerabilities within DeFi protocols. It is a reminder that despite the industry’s growth and popularity, there are still risks associated with investing and utilizing DeFi platforms.

Investors in the DeFi space must be vigilant about the potential security risks that come with using these platforms. With the recent attacks on Aave and Yearn Finance, it’s essential to take precautions and carefully assess the risks before investing. If you’re looking to invest in DeFi, platforms like Bit Index AI or Ethereum Code may be worth considering as they offer a range of investment options and advanced security features to help protect your assets.

  • Steven Gray

    Steven Gray is a journalist with a heart for crypto. He filters the wide range of news and ensures that it reaches the public in a comprehensible way. He often does this with the support of technical analysis.

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