Yearn.Finance repays victims of $11M hack from its newly expanded treasury (www.blockcast.cc)

Yearn.Finance team has opened a Maker vault with native tokens YFI from the treasury. The team said on 9 February on Twitter that Yearn has also minted 9.7 million DAI tokens from the vault, thus restoring the yDAI vault and allowing the DeFi project to repay victims.

In the wake of Yearn.finance’s recent hack, project members have been discussing ways to mitigate the aftermath of the recent exploit on its users. The DeFi project recently suffered a theft of $2.8 million and cost the vault $11 million in stablecoin DAI.

In addition, the Yearn team has informed users not to count on this happening again since the plans were “done as a one-off celebration.” Yearn also expects its users to purchase Cover, a market coverage provider.

yDAI vault restored!

Yearn has opened a Maker Vault with YFI from the Treasury to mint 9.7m DAI and make the yDAI vault whole.

It was done as a one-off celebration of going through this DeFi rite of passage. Don’t count on it happening again. Make sure to buy Cover next time. pic.twitter.com/6xNh3XEVYZ

— yearn.finance (@iearnfinance) February 9, 2021

On 28 December, last year, Cover suffered an attack, however, the suspected hacker soon returned the stolen funds.

After the exploit, Yearn’s governance token crashed by 15% in less than two hours, at the time. Users began to convert YFI into ETH and other tokens as well.

As a result, YFI prices fell to $29,600 from $35,000. During the present rally when most cryptos have been on a bullish trend, YFI seem to be recovering and was trading at $31,842, down 0.9% over the past hour, at press time.

The total value locked in Yearn has been steady so far, with $481.8 million in TVL, which has been up by 5.6% in the past 24 hours according to data from DeFi Pulse.

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User That Borrowed $80m Worth of Yearn.finance (YFI) Repays Loan (www.blockcast.cc)

Yearn.finance (YFI) has been under pressure over the past few weeks. The leading Ethereum-based coin has dropped dramatically from its $44,000 all-time high set around six weeks ago to a local low of $12,000 just 12 hours ago as of this article’s writing.

The coin is up approximately 20% in the past 24 hours as buyers have stepped back in. Bitcoin is also rallying a few percent due to news that Square, a large fintech company, has invested more $50 million into BTC for its balance sheet. $50 million represents only 1% of Square’s balance sheet, but many in the space see this as a decisive victory for adoption.

The rally in the price of YFI comes after a larger borrower of YFI seemingly closed a large short position for the asset. There were some analysts expecting a “short squeeze” for altcoins, especially Yearn.finance.

Related Reading: Ethereum Transaction Fees Surge to All-Time Highs After Uniswap Launch

Yearn.finance Short Closed Amid Strong Move Lower 

Over the past week, there’s been much drama on Twitter because on-chain analysts have spotted that a large cryptocurrency investor has been borrowing literally around $80-100 million worth of YFI through Aave.

Aave is a money-market protocol where users can borrow and lend cryptocurrencies; borrowers can do whatever they want with the coins they borrows, as long as they pay it back along with the associated interest. Yearn.finance’s YFI have been deposited on Aave en-masse due to potential yields on lending coins to the protocol.

The vast amount of YFI borrowing has left many to believe that the user behind these transactions is shorting the cryptocurrency.

You all can stop harrassing him about his $YFI borrows. pic.twitter.com/rkWllJqxfR

— Hsaka (@HsakaTrades) October 8, 2020

As noted by crypto trader Hsaka, just today, the user closed their YFI position on Aave, paying back 525 YFI to the protocol’s pool.

Related Reading: MicroStrategy’s Stock Continues to Soar After BTC Purchase

DeFi Still in Vogue

The closure of this position comes as analysts and fund managers within the space have asserted that the fundamentals of the DeFi space remain extremely positive.

For one, the number of MetaMask users (active monthly users) recently hit one million for the first time ever. One year ago, this metric was closer to 256,000, meaning a growth of over 300% has taken place in 12 months.

Related Reading: Critical On-Chain Signal Predicts That Bitcoin’s Next Move Will Be Upward

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Price tags: yfiusd, yfibtc
Charts from TradingView.com
User That Borrowed $80m Worth of Yearn.finance (YFI) Closes Position

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Author: Refer to Source Nick Chong