Crypto enthusiasts were shocked by early morning reports today of a hack that has affected two of Ethereum’s most popular decentralized finance (DeFi) protocols – Aave and Yearn Finance.
Security firm PeckShield first reported the exploit, which is believed to have involved a flash loan targeting Aave V1 and could have caused damage in excess of USD 11 million. PeckShield directed a tweet to Aave requesting that it verify a specific transaction hash.
According to LookOnChain, the attacker received a mixture of stablecoins from Yearn Finance and Aave. The attacker managed to capture significant amounts of DAI, USDC, BUSD, TUSD, and USDT. Aave later confirmed in a tweet that the transaction did not have any impact on Aave V2 and V3. However, the company was still investigating whether there was any impact on Aave V1, the oldest version of the protocol, which has been frozen since December 2022.
In response to the situation, Marc Zeller, head of Aave integration, explained that research is ongoing, but Aave V1 users can still repay and withdraw their funds from the traditional app. He further clarified that there is currently no known impact on Aave V2 and V3. The ETH price, which maintained its upward trend despite fears of a dump due to yesterday’s Shanghai hard fork, remained at USD 1,920 at press time.
