GeckoPulse: Veteran DeFi Protocol Yearn Finance Hacked

Even The Old Guard Is Not Spared

The yield aggregating platform, Yearn Finance, has suffered a $8.9M hack after its yETH vault was drained.

According to on-chain data, a hacker was able to exploit a vulnerable smart contract in the yETH stableswap pool to mint an infinite amount of receipt tokens, allowing them to withdraw various liquid staked ETH tokens from the vault in one transaction.

The hacker then sent 1,000 ETH, worth approximately $3M, to Tornado Cash.

The team has since acknowledged the exploit, claiming that the relevant contract contained customized code, which is not connected to other Yearn V2 and V3 vaults.

In total, the protocol lost $8M worth of deposits from the stableswap pool, and an additional $0.9M from the yETH liquidity pool on Curve.

Since the exploit, the price of Yearn’s native governance token, YFI, has fallen by 5.7% from $4,125 to $3,891.

In-game Stablecoins?

Even Sony is jumping in on the stablecoin craze!

Sony Bank, the lending arm of the Sony Financial Group, has announced its interest to develop a stablecoin for facilitating payments within the Sony ecosystem in the US.

The dollar-pegged stablecoin is slated to go live in 2026, and can be used to purchase subscriptions, games and anime.

For Sony users, the stablecoin will function as an additional payment option that intends to reduce card and transaction fees.

While the firm has not yet revealed which blockchains will support the stablecoin, Sony’s own Soneium L2 may potentially be one of them.

In Other News

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Terminal Finance Shutters. Terminal Finance, a DEX incubated by Ethena and attracted over $280M in pre-deposits, announced its closure even before its launch. The closure was due to Converge network being unable to launch. Terminal was designed to be the main DEX of the upcoming Converge blockchain network. Its launch failure has left Terminal with a fully built product with nowhere to operate.

HashKey Inches Closer to Hong Kong IPO. Crypto exchange HashKey has cleared a key regulatory hurdle for its upcoming IPO on Hong Kong’s stock exchange. HashKey is Hong Kong’s largest licensed crypto exchange.

Arthur Hayes Warns USDT Might be Insolvent. The recent audit report of Tether’s USDT has drawn the attention of BitMex’s former CEO, who warned that according to Tether’s current holdings, a 30% decline in Tether’s current BTC and gold positions could wipe out their equity and render USDT insolvent.