Once again -- a system failure leads to huge losses. This is what a unregulated market with no standards, no insuring & clearing institutions, and no oversight leads to. Yearn Finance Hit by 63% Treasury Loss Due to Script Glitch https://www.tradingview.com/chart/Y...Hit-by-63-Treasury-Loss-Due-to-Script-Glitch/ Yearn Finance experiences a major treasury loss due to a multisig script error, leading to new safety measures and community outreach. In a significant setback for Yearn Finance, a leading player in the decentralized finance (DeFi) sector, a script malfunction in its multisig (multi-signature) system led to a substantial loss of its treasury assets. The incident on December 11 resulted in the unintended swap of Yearn’s treasury balance, amounting to a loss of approximately 63%. The company confirmed that the loss affected only the treasury funds and did not impact customer funds. The mishap involved the accidental exchange of 3,794,894 lp-yCRVv2 tokens from Yearn’s treasury. This transaction, executed on CoW Swap, led to significant market slippage due to the large volume involved, further exacerbating the loss. Yearn Finance Treasury Error Triggers Huge Loss The event unfolded as a result of multiple oversights in handling the treasury funds. Yearn’s statement explained that the entire treasury balance, including fees, was mistakenly transferred to a trading multisig, initiating over 30 trade orders. Among these was the critical swap of the treasury balance. This transaction’s complexity and high volume of trades hindered effective human review, allowing the error to pass unnoticed. The protocol identified that the script used for token swapping lacked adequate output checks and contained a logical flaw. This flaw failed to cap the trade size, leading to the unintended large-scale transaction. New Safety Steps at Yearn Post Loss Yearn Finance has implemented several measures to prevent a recurrence in response to this incident. The protocol plans to segregate protocol-owned liquidity (POL) funds into separate entities and enhance its trading scripts to produce more comprehensible output messages. Additionally, it will enforce stricter price impact thresholds during trades. This incident is not the first security challenge Yearn has faced. Earlier in the year, the protocol was the target of an attack where a vulnerability in a Yearn vault was exploited, resulting in the theft of approximately $11 million in stablecoins. The attacker utilized a small amount of tether (USDT) to mint a vast quantity of yUSDT. This Yearn-equivalent token was exchanged for stablecoins, culminating in a significant financial loss for the protocol. Yearn Finance has reached out to the community, appealing to those who profited from arbitraging the mistake to return a reasonable amount to Yearn’s main multisig wallet, ychad.eth. This appeal highlights the collaborative and self-regulating nature of the DeFi community.
You seem to be quite mistaken. We see this happening ALL THE TIME in the FIAT banking system. An investment bank sends out BILLIONS due to a fat-finger order or some other issue to the wrong account(s). Recently there was an issue where multiple hedge funds received millions, were asked to return it, and many refused to do so as they were not legally breaking the law by saying NO. So what was that you were blabbing about? You think the modern banking system does or doesn't have standards and clearing? Oversight... what? And it's not just the banks, even stock exchanges like the CBOE and TSX did stuff like that with fat-finger orders and caused a hell of a lot of caos. Sometimes they've done the re-wind, canceling legit orders to try to fix this... circumventing the free market rules.
The standard retail banking system and standard brokerages in western nations are regulated, have clearing, and clear standards in regards to returned improperly transferred money. Likewise the professional markets such as exchanges also have standards regarding processing of orders, clearing, legal frameworks and dispute resolution. The crypto market is completely unregulated and 90% of it IMO is straight-out fraud. BTW - The only significant example of hedge funds refusing to return money that I am aware of involves Citibank sending money to Revlon lenders (ignoring other international examples involving sovereign debt from defaulting countries). Citi sent out larger (the full) pre-payments when they only wanted send partial interest payment (you know, to screw the hedge funds & other lenders). Keep in mind that Revlon was heading towards bankruptcy at the time and lenders (the hedge funds) were first in line to be paid. Well the courts ruled that the hedge funds were in the right and they got to keep the $500 Million.
GWB probably lost a lot of monies on crypto. A lot of cry babies get into the financial markets then, cry after they have lost their monies. Most of them have no clue on what the hell they are even doing. So, blame others? Blame the regulatory agencies? Why don't you blame yourself fool?
Bitcoin, termed rat-poison by a man who thought he would outlive crypto. But.. he died! Buffett is up next... Anyone seriously think Buffett will outlive Bitcoin? Anyone???
%% LOL\Watchdog on Wall Street said i dont think SEC should regulate crypto[or any bit con]; he thinks DOJ should go after them .................................. IRS is plenty alive also