Yearn Recovers $2.39M of $9M After yETH Stableswap Exploit

Published at 2025-12-03 08:30:23

Yearn Finance confirmed it has recovered about $2.39 million of the approximately $9 million lost when a critical vulnerability in a custom yETH Stableswap pool was exploited. The flaw allowed an attacker to drain funds from the pool; Yearn’s developers and security collaborators say they are actively tracing on‑chain flows to recover more assets and prevent further movement of stolen tokens.

The incident underscores risks tied to bespoke pool implementations and the need for rigorous audits and governance oversight. Market and community impact remains under watch: token holders and liquidity providers face short‑term uncertainty while Yearn pursues exchanges, analytics teams, and legal avenues to freeze or reclaim remaining funds. The case is likely to prompt renewed scrutiny of custom DeFi contracts across protocols.

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