Hackers have once again attacked the decentralized finance (DeFi) industry. This time they have exploited Harvest Finance a decentralized yield farming protocol. According to a report, the hacker has drained around $24 million in value from Harvest Finance pools. Reports have also revealed that an amount of $2.5 million out of these exploited funds has already been sent to the deployer. However, the identity of the hacker is still unknown.
Funds were cashed out via renBTC and Tornado Cash
As per reports that appeared early on Monday, October 26, 2020, the hacker seems to have cashed out all of these funds. The attacker has converted these exploited funds into renBTC (rBTC) a synthetic token backed by Bitcoin and Tornado Cash, a zkSNARKs-based non-custodial ETH and ERC20 privacy solution. The amount was withdrawn within the duration of just one hour following the attack.
Harvest Finance is continuously providing details over this exploit via Tweets. The DeFi yield farming protocol has said in a tweet that it was an “economic attack” that was performed by the hacker through Curve y pool by “stretching the price of the stablecoins in Curve out of proportion and depositing and withdrawing a large amount of assets through harvest.”
For ensuring the protection of users, Harvest Finance said that y pool and BTC curve strategy funds have successfully been pulled into the vault. Furthermore, the DeFi protocol informed users that all of the other pools have not been affected and are completely safe. Moreover, it said that it is blocking deposit to Bitcoin (BTC) and Stablecoin vault in order to ensure one hundred percent protection of users. Those deposits that have already been made will continue to earn rewards and interest on the protocol’s native token FARM.
Harvest Finance has said in a tweet that it is actively working on “the issue of mitigating the economic attack on the Stablecoin and BTC pools” and that it will provide further updates very soon over this incident.
Harvest Finance’s TVL dropped from $1B to $572 million
Following the exploit, the total value locked in this decentralized finance yield farming protocol has dropped down from $1 billion to approximately $572.5 million. It has also affected the total value locked in DeFi.
Moreover, the price value of the protocol’s native token FARM also plummeted down by recording a fall of around 65 percent.