HomeNEWSAave debunks exploit on protocol

Aave debunks exploit on protocol


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Popular Open Source liquidity protocol, Aave has responded to claims about an exploit on Yearn Finance. In the announcement, Aave revealed its V1, V2, and V3 were not affected. Earlier today, Paradigm researcher Samczsun raised an alarm about a possible exploit on Aave.

Aave swiftly dismiss the rumors after tension surfaced about an exploit on Yearn Finance. Today, the Decentralized Finance (DeFi) protocol lost millions of dollars to an exploit. The attackers leveraged a bug in a token issued by Yearn Finance resulting to the loss of more than $11 million in stablecoins such USDT, USDC, DAI, TUSD and BUSD.

Meanwhile, the data indicated that Aave v1 also suffered from the exploit. This claims prompted the Aave team to issue a statement, while assuring users about the safety of its protocol. However, the team said the hackers used the protocol to swap the coins stolen from Yearn Finance. The project’s integrations lead, Marc Zeller explained that the Aave protocol v1 is immune to the exploit. Zeller noted that the v1 of the protocol became frozen last Decembere. Therefore, limiting any possible effect of the attack to the protocol.

Worth mentioning that hackers had stolen a fortune from various DeFi projects this year. On different occasions, they’ve leveraged various vulrunbilities on their victims to carry out their attacks. Within the last month, Hackers stole more than $211.5 million across different attacks. Accordingly, the most recent of their attack surfaced Earlier this week as they stole $3.3 million from SushiSwap.

Furthermore, Yearn Finance has also issued a statement similar to the announcement from Aave. Yearn Finance illuminated that it is looking into an issue with iearn which is an outdated contract from before v1 and v2. The team explained that the problem is exclusive to iearn and doesn’t affect the present Yearn contracts or protocols.

Side notes about Aave

Despite the tension, the native token of the Aave protocol has maintained a positive and steady price movement in the market. According to Coinmarketcap, the token is trading at $79.35 and it has been up by 2.93% in the last 24 hours.

Worth mentioning that Aave Finance provides crypto loans to users. Also, the protocol allows Lenders to gain interest by putting their virtual assets in a special pool. Thereafter, borrowers can take a flash loan using their crypto assets as collateral. Per market data provided by DeFiLlama, Aave has the third-highest TVL which is worth $5.7 billion.

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David Idowu
David Idowu
David Idowu is a crypto reporter and trader with wealthy years of experience. He believes that blockchain technology has numerous opportunities that are begging for proper utilization. Away from work, David is either reading about World Politics, History or Tech Innovations.

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