Yearn.finance pleads arb traders to return funds after $1.4M multisig mishap

Decentralized finance protocol Yearn.finance is hoping arbitrage traders will return $1.4 million in funds after a multisignature scripting error, resulting in a large amount of the protocol’s treasury being drained.

“A faulty multisig script caused Yearn’s entire treasury balance of 3,794,894 lp-yCRVv2 tokens to be swapped,”

One arbitrager has already transferred 2 Ether (ETH), worth $4,500, back to Yearn’s treasury address, according to Etherscan. “Sorry to hear that lads, happens to the best of us. Didn’t profit that bigly like some others did, and we did take on some risk and helped the peg, but here’s some back anyway,” they added in an on-chain message.

To prevent similar mistakes in the future, Yearn said it will separate protocol-owned liquidity into specific manager contracts, implement human-readable output messages and enforce stricter price impact thresholds.

Yearn fell victim to an $11.6 million exploit on April 11 after the hacker managed to mint one quadrillion Yearn Tether (yUSDT) tokens and trade it for other stablecoins.

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