The decentralized finance protocol Yearn Finance has repaid the victims of the $11 Million hack by opening a new Maker Vault with the tokens from its expanded treasury.
After being hacked and incurring a loss of about $11 Million, the major decentralized finance protocol YFI (Yearn Finance) has reinstituted its yDAI vault.
The announcement was made on Tuesday that a Maker Vault loaded with YFI tokens from the tokens’ treasury has been opened and has minted about 9,700,000(9.7 Million) DAI tokens from the vault to sustain the other yDAI vault. The project intends to reimburse the users who are victimized by the massive hack of the platform without causing any huge blow to the treasury. Using the money borrowed allows them to do this either by repaying the debt gradually with the revenue generated from the protocol or by anticipating the appreciation of the YFI tokens.
The teams emphasized that the occurrence is a one-off, and they expect their users to hedge their own risks by buying intact coverage from the Yearn Ecosystem Member Cover that was breached and hacked recently.
A tweet from the project account on Twitter confirms this development, and they added that no user should expect that it is not going to happen again; thereby, every user should ensure they buy cover in time to come.
The exploit of the yDAI vault came along with a 15% crash in the price of the governing token of Yearn Finance in just about two hours, with the YFI token dropping from $35,000 to about $29,000 subsequently. Currently, the price of YFI in the market is $31,747, which is about -2.4% in the past 24 hours.
But despite that hasty crash, the Total Value Locked (TVL) in Yearn Finance is still quite steady, with the value peaking above the levels it was in December 2020 and January 2021. The TVL is about $481.8 million as of the time of compiling this article, which is about a 1% gain in about 24 hours, according to a dataset released by DeFi Pulse.
Yearn Finance is the 14th largest Decentralized Finance protocol based on the Total Value Locked as at the time of writing.