Yearn Finance (YFI) Hacked, $2.8 Million Worth of Assets Vanished

Bittime - Yearn Finance (YFI) hacked and confirmed an attack targeting yETH products on Sunday night. This incident immediately sparked concern, as the attackers managed to exploit a vulnerability in the system to mint a large amount of yETH and then drain assets from several liquidity pools.

This incident also shows how vulnerable the decentralized financial sector is if security is not continuously improved.

Initial Attack on November 30, 2025

According to data from the blockchain network, the attack occurred around 9:11 PM UTC on November 30. The attacker's wallet allegedly executed the attack by minting a near-infinite amount of yETH.

In a single transaction, over 235 trillion yETH were created. The perpetrator then used these tokens to withdraw native assets like ETH and several staking tokens from Balancer's liquidity pool.

Initial reports estimated the value of the missing assets at approximately $2.8 million. After obtaining the assets, the perpetrators channeled them through Tornado Cash to complicate tracking.

Around 1,000 ETH was reportedly transferred to the mixer shortly after the attack. Several helper contracts used in the attack were also created just minutes before the attack and immediately destroyed to eliminate any traces.

Yearn Finance confirmed that its V2 and V3 Vault products were not affected. The vulnerability was found only in the legacy yETH system, so it is not expected to impact Yearn's core infrastructure.

The total value of assets held in the Yearn ecosystem is reportedly still above $600 million according to CoinGecko data, indicating that core operations are still running.

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Market Reaction

This situation triggered a unique market reaction. As soon as news of the Yearn Finance (YFI) hack spread, the price of the YFI token actually surged.

In less than an hour, the price of YFI surged from around $4,080 to over $4,160. This surge is believed to have stemmed from market misinterpretation when news of the attack first emerged.

Many market participants opened sell positions with high leverage due to concerns that the attack would have a direct impact on Yearn as a whole.

However, after it was confirmed that the problem only occurred with yETH, market participants began to close their short positions and created sudden buying pressure.

YFI TokenYFI itself has a very small circulating supply of only 33,984 tokens. This structure makes YFI's price prone to sharp fluctuations, especially during times of uncertainty.

Derivatives data also noted an increase in financing volatility shortly after the attack was confirmed.

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Losses Remain Limited on yETH

For now, the losses appear to be limited to yETH and Balancer pools directly linked to the attack. The investigation is ongoing, and it's unclear whether the stolen assets can be recovered.

Many are also awaiting an official statement from Yearn regarding the root cause, corrective measures, and possible follow-up actions through governance mechanisms.

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FAQ

What is Yearn Finance (YFI)?

Yearn.Finance isa group of protocols that run on Ethereum blockchain which allows users to optimize their income from crypto assets through lending services (lending) and trading. This is one of the Decentralized Finance projects (DeFi) that appears.

Is Yearn Finance a good investment?

Yearn.Finance offers investment opportunities with high yield (high-yield)although it involves significant risks. Its main drawback is related to security, because this platform has experienced a hack in 2020 and 2021 (although users were compensated on hack final).

Can Yearn Finance reach $1 million?

It is impossible for YFI to reach $1 million in the near future (foreseeable future), although predictions suggest that the price will continue to rise. Currently, it is priced at just over $4,600.

Why is YFI so expensive?

YFI price is heavily influenced by requests from the parties participating in staking and network governanceOverall, the price of YFI is determined by the accumulated buy and sell demand from millions of participants worldwide.