How One Hacker Made Over $11 Million in Minutes Through This New DeFi Trick!

By IAmFaishal_ | CryptoTech Research | 29 Apr 2023

"Stop everything and read this- a DeFi hack that minted over 1 quadrillion Yearn Tether (yUSDT) from just $10,000!?!" Yep, you read that right! Blockchain security firm PeckShield reported that an attacker was able to pull off this feat recently. Not only that, but the hacker also exchanged yUSDT for other stablecoins, which gave them access to a whopping $11.6 million worth of stablecoins. We're talking about Pax Dollar (USDP), TrueUSD (TUSD), Binance USDBUSD, Tether USDT, USD Coin (USDC) and Dai (DAI)- that's some serious cash!

And it doesn't stop there. The hacker even managed to transfer 1,000 Ether, currently worth almost $2 million, to the sanctioned cryptocurrency mixer Tornado Cash. Hats off to them for such a bold move. PeckShield quickly alerted DeFi protocols Aave and about the situation. Following initial checks, lending platform made a statement clarifying that the issue was limited to iearn, an outdated contract before vaults v1 and v2. They confirmed that the current contracts and protocols are not affected by the exploit.

Meanwhile, Aave also confirmed their awareness of the transaction. Fortunately, the liquidity protocol recently confirmed that the hack did not impact Aave v1, v2, or v3. This goes to show that they must have taken adequate security measures to prevent any damage to their contracts and protocols.

It's unfortunate that hacks still plague the DeFi space in 2023.

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