On June 27th, Yield Protocol declared that it has completely recovered from the Euler flash loan attack. The protocol announced on Twitter that liquidity providers can finally update their strategy tokens, completing the difficult route toward restoration.
The attack on the noncustodial lending protocol Euler Finance compromised 11 decentralized finance protocols, including Yield Protocol. The mainnet borrowing feature of Yield Protocol was temporarily suspended after the breach on March 13th. While Euler experienced losses of more than $195 million, the protocol reported losses from its liquidity pools of less than $1.5 million.
After being “back in full swing” for the June and September series, Yield Protocol declared on May 18th that users could once again borrow and lend. According to the protocol, it would take users about a week to request replacement tokens.
After Euler was able to recoup a sizable percentage of its losses from the hackers in April, Yield Protocol assisted Euler in the recovery process. The complicated deployment of 26 new contracts and the execution of almost 300 permissioned calls were described in detail by Yield Protocol in a blog post. To reset fixed-yield token maturities and restart the system, these steps were required.
Users will be able to exchange their liquidity provider tokens for new ones created during the recovery phase as part of the restoration procedure. This stage guarantees that users are restored to full health and their places are reinstated.
The team’s perseverance and dedication to regaining Yield Protocol’s functioning and supplying a secure environment for borrowing and lending inside the decentralized finance ecosystem is demonstrated by the protocol’s successful recovery.