Hacker succeeds in stealing $2.8 million from Yearn.Finance Digital Vault

Blockchain security fails to protect Vault's latest hack worth $2.8 million
  • Yearn.Finance allows its customers to deposit funds through Vaults
  • On Thursday evening, a hacker stole $2.8 million from one of the digital vaults of the platform
  • Yearn.Finance is yet to release a complete report detailing the respective episode

Yearn.Finance is a platform that allows its customers to deposit funds in the form of shared digital pools called Vaults. These vaults function like mutual funds. They are cumulated with the funds employed in other decentralized finance offerings to produce additional earnings.

Controversial robbery from Digital Vault 

A strange account hacked an amount of $2.8 million from the platform’s signature digital vault on Thursday evening. The culprit used Aave to exploit the respective Vault. 

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Aave is an open-source cryptocurrency project. It facilitates people with flash loans. Flash loans provide for quick borrowing and lending of money without the requirement of any collateral. Yearn.Finance is yet to release a complete report detailing the respective episode.

This theft exposed the vulnerabilities associated with blockchains. Blockchains are a safety technology accountable for the safety of cryptocurrency transactions. These were usually considered to be un-hackable.

Workings of Yearn.Finance

The transactions of Yearn.Finance is based on Ethereum. Ethereum is a flexible cryptocurrency that can be refined through programming codes for multiple activities, called smart contracts

Just like other cryptocurrencies, Ethereum traces all of its customers through blockchains. These blockchains act as digital records that save information of each transaction and are substantiated by various computers in a decentralized community. In the respective context, the hacker accessed the Vault by releasing an Aave flash loan.

Discord: the first platform to release the news 

The theft news first went out on Discord, a platform for digital distribution, on Thursday evening. At 4:38 pm, Jeffrey Bongos, a Yearn’s user, put forward a question on the Discord server. He inquired if anyone knew why the v1Dai Vault reflected a loss of thousands of Dai from his respective account.

The Yearn website, after 5 pm, stated that the Vault suffered a loss of 1059 percent. The information about the transaction is now available for public access on Etherscan.

Yearn.Finance did not release any official information about the culprit or the technique used.

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Andrew Smithhttp://thecoinrepublic.com
Andrew is a blockchain developer from his education and developed his interest in the cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer.

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