DeFi platform Yearn has lost a large portion of its treasury by swapping all of its lp-yCRVv2 tokens for yvDAI and has asked those who profited from the mistake to return it.
In Yearnâs post-mortem published on Tuesday, it said the problem arose from inadvertently transferring the entire reserve of lp-yCRVv2 to the trading multi-signature wallet, and the script there attempted to swap the entire quantity, experiencing âsignificant slippageâ in the process.
âThis amount comprised a large portion of the Curve pool, and therefore incurred significant slippage which arbed back to the normal price by the market shortly after,â Yearn said.
The DeFi platform further described the losses, pointing out âthe total loss experienced by Yearnâs treasury comes out to about 63%.â
Yearn highlighted that âthe script used by the trading multisig to swap tokens lacked sufficient output checks and contained a logical error that would have capped the trade size to a reasonable amount.â
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Since the mistake, Yearn has begun attempts to reach out to traders who profited from Yearnâs mistake, noting on-chain that âone of yearns multisigs made a costly mistake last night that affected a critical source of yCRVs liquidity.â
âWe identified you as having made a profit off of this and are kindly requesting that you return as much as you see reasonable to yearns main multisig: ychad.eth. sorry we have to ask this, but hope you can understand.â
At least one address seems to have decided to send 2 ether ($4,400) back to the treasury, but the rest seem to be waiting for now.
