Yearn Finance yETH Pool Exploited for Approximately $3M in LST Assets

Yearn Finance's yETH product, which aggregates liquid staking tokens, was exploited on December 1 for millions of dollars in LST assets, The Block reports. Blockchain data show an attacker minted nearly unlimited yETH tokens through a crafted vulnerability in a single transaction, draining the pool and sending 1,000 ETH (approximately $3 million at current prices) to Tornado Cash. The attack involved multiple newly deployed smart contracts, some of which self-destructed post-transaction, according to X user Togbe who first detected the incident. Yearn stated on X that its V2 and V3 Vaults remain unaffected, while the exact loss scale from the approximately $11 million yETH pool is under investigation.