DeFi leader Yearn Finance experienced a significant setback last night after inadvertently swapping their entire treasury of 3.8 million Ip-yCRVv2 tokens (valued at ~$2.28 million) for a mere $780,000 in stablecoins. This substantial price slippage, exceeding 63%, resulted in a substantial loss for the protocol.
Imagine trying to sell your prized car collection at a yard sale without checking the local listings. That's essentially what Yearn did, flooding the market with their tokens and triggering a 63% price dive. Suddenly, their holiday shopping spree looked thinner than a blockchain ghost.
In an unusual step, Yearn publicly acknowledged their mistake and reached out to the beneficiaries of the trade, requesting the return of a portion of the profits. This move, while unorthodox in the DeFi space, reflects Yearn's commitment to transparency and their hope for community support.
The response, however, has been a mixed bag. So far, only one kind soul has offered a handful of $ETH (around $4,400). The rest are either playing hardball or channeling their inner Grinch, clutching their unexpected bounty tighter than a dragon guarding its hoard.
Yearn Finance's epic swap blunder is a stark reminder: even DeFi giants aren't immune to costly mistakes. Their plea for a holiday-infused refund may evoke heartwarming tales of Scrooge McDuck and Santa Claus, but the reality is starker.