As reported by Biji.com, in November 2025, Yearn Finance's yETH product became the latest victim of a DeFi vulnerability, draining $3 million in Ethereum-based funds. The liquidity pool suffered losses due to a critical smart contract flaw, allowing attackers to mint unlimited tokens and bypass collateral requirements. The stolen funds were laundered via Tornado Cash, complicating recovery efforts. This incident highlights systemic risks in yield aggregation strategies, where opaque fund management and over-leveraged practices have led to failures at platforms like Stream Finance and Elixir, causing losses exceeding $93 million and $285 million respectively. Analysts warn that frequent audits, transparency, and cross-chain risk assessments are essential to mitigate cascading failures in the DeFi ecosystem.
Yearn yETH Vulnerability Exposes Systemic Risks in DeFi Yield Aggregation
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