Yearn Finance yETH Pool Attacked: About $8 Million Drained and $900K Lost in yETH-WETH on Curve; Investigation Under Way

Yearn Finance confirmed a security incident affecting the yETH pool, stating that a bespoke contract minted a large amount of yETH and drained about $8 million in assets. An additional roughly $0.9 million was lost from the yETH-WETH pool on Curve. The company stressed that the affected code is isolated to this product and did not impact V2 or V3 Vaults.

Yearn has engaged SEAL911 and auditing firm ChainSecurity to conduct a forensic review. Management described the event as a DeFi security incident with no confirmed attacker identity at this stage. The episode mirrors earlier liquidity exploits, underscoring the need for enhanced smart-contract controls and liquidity risk governance.

As investigations continue, Yearn will publish updates to support liquidity providers and users. The move reinforces industry emphasis on robust audits, rapid incident response, and secure protocol design to safeguard assets in decentralized finance.