Odaily Planet News: According to a post by BlockSec on the X platform, a DeFi protocol, YO Protocol, experienced an abnormal Swap event on Ethereum. A user exchanged approximately $3.84 million worth of stkGHO for only about $122,000 in USDC. The analysis suggests the incident was caused by two overlapping factors: 1) the initiator submitted an incorrect estimated output value, rendering the slippage protection essentially useless; 2) the transaction path was abnormally set, passing through high-fee, low-liquidity pools, resulting in significant fee extraction and price impact. The team has now purchased GHO and re-deposited it as stkGHO in an attempt to mitigate the issue.
DeFi Protocol YO Protocol Experiences Abnormal Swap on Ethereum
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Summary
DeFi protocol YO Protocol experienced a DeFi exploit on Ethereum, where a user swapped $3.84 million in stkGHO for only $122,000 in USDC. The issue arose from an incorrect estimated output and a flawed transaction path through high-fee pools. The team has since implemented a protocol update, purchasing GHO and re-depositing it as stkGHO to resolve the issue.
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