Yam Finance successfully protected $3.1 million worth of assets from a hacker attack

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The Yam Finance decentralized finance protocol team announced that an attacker took advantage of community voting in the protocol to nearly empty the crypto platform's storage.

DeFi developers preventeda cyber attack aimed at transferring control over project reserves to an unknown third party. Yam Finance admits that the hacker attacked the project on July 7, and only two days later the team discovered the hack.

The attacker submitted a proposal forprotocol control using an internal transaction, so the team and community members did not suspect a cyber attack in time. The malicious proposal included an unverified smart contract designed to transfer control of Yam Finance reserves to a wallet address controlled by the attacker. The scammer would have been able to gather a quorum for the proposal to be accepted by the majority of the community, but it was noticed by the Yam Finance team.

If the attack had been successful, unknowncould have emptied the treasury of Yam Finance, which currently holds $3.1 million worth of crypto assets. The protocol team reported that they had already encountered a similar attack in 2021.

The attack was possible amid the struggle formanagement of the Yam Finance ecosystem associated with the project repository. The current model was approved by the majority (more than 54%), but some community members have now put forward a proposal for a second vote.

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In 2020, the team of the decentralized finance project YAM Finance, after passing the audit, announced the launch of the third version of the protocol.