Yearn Finance Hit by $9M DeFi Exploit; $2.39M pxETH Recovered
Yearn Finance confirmed a security breach affecting a custom yETH stableswap pool, with total losses of roughly $9 million. The team reported a partial recovery of about $2.39 million in pxETH; specifics on the exploit vector, attacker identity, and the final disposition of remaining funds have not been disclosed. The issue was isolated to the custom yETH stableswap implementation rather than Yearn’s entire vault suite, per the confirmation.
The incident underscores persistent risks in composable DeFi, particularly when protocols deploy customized pools that diverge from widely audited templates. For users and liquidity providers, the exploit raises questions about exposure in yETH positions and any forthcoming remediation or compensation plans. Market watchers say the event will likely prompt closer review of audit coverage, multisig governance, and monitoring across DeFi projects to limit similar failures.