Yam Finance prevented an attack aimed at seizing its Treasury
The attacker submitted a management proposal that would transfer control over the reserves of Yam Finance to the hacker's wallet. The Treasury of the protocol contains assets worth more than three million dollars.
Yam Finance (YAM), a decentralized finance protocol (DeFi), has prevented a malicious management attack aimed at transferring control of its reserves to an unknown third party, the project said in a statement on Saturday.
According to a preliminary report by Yam DAO, the attack was launched on July 7, but was discovered two days later. The attacker submitted a proposal for management using internal transactions, which is why community members could not notice him.
The malicious management offer included an unconfirmed contract designed to transfer control over Yam reserves to a wallet address controlled by an attacker. The fraudster was first able to gather a quorum for the proposal, which was under threat of acceptance, before it was stopped by the Yam Finance team.
If the attack had been successful, it could have emptied the coffers of Yam Finance, which currently holds $3.1 million worth of crypto assets, according to DeepDAO.
Yam Finance stated that the attack was similar to another attempt made in December 2021.
Saturday's attack came amid a struggle over the management of the Yam ecosystem, also linked to the project's treasury. The problem was another controversial management vote (this time an instant vote), which was aimed at ensuring that the treasury of the project was repaid at a proportional rate.
Although the initial vote on the snapshot was taken by a majority of more than 54%, there are now calls to redo the process. Some community members submitted a new proposal for a second vote, claiming that the initial process did not go through the usual management procedures.
Yam Finance was one of the projects that emerged as a result of the early DeFi boom in the summer of 2020. Initially, it was a stablecoin protocol, but the project turned into a DeFi center after a serious error occurred during the migration just two days after the project started.
The market capitalization of the YAM token then collapsed by more than 90% within a few minutes after the error was discovered.
https://coin-signal.com/cryptonews/yam-finance-prevented-an-attack-aimed-at-seizing-its-treasury/
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