- A user received about $112,000 instead of roughly $3.73 million after an automated swap went through at extreme slippage.
- The error occurred in the harvesting automation of YO Protocol while swapping Aave’s stkGHO for Circle’s USDC.
- YO Protocol said slippage protections were insufficient and the trade proceeded when it should have been blocked; the project published a postmortem statement.
- No user funds were lost and the protocol says it has fixed the error and added safeguards.
- The project holds about $61.8 million locked, and experts said this type of mistake is common in yield farming automation.
A human error in an automated yield-harvesting routine on Tuesday caused a user to receive about $112,000 instead of roughly $3.73 million when swapping tokens on YO Protocol. The swap involved Aave’s stkGHO and Circle’s USDC, and the protocol’s automated harvest system executed the vault’s entire stkGHO balance at a very poor price due to extreme slippage.
YO Protocol said its slippage protections were insufficient and that the trade proceeded when it should have been blocked; the project published a postmortem statement describing the issue. The protocol reported that no user funds were lost and that it fixed the error immediately.
The incident happened during an automated routine designed for claiming small rewards, the project said, and the checks for small claims were not sufficient for a transaction of that size. YO Protocol added that it has implemented additional safeguards to ensure the system operates safely and reliably.
Yehor Rudytsia, head of forensics at Cybersecurity firm Hacken, said the root cause is common for yield farming protocols that perform capital rotation. He stated, “The root cause of the incident is typical for yield farming protocols which do perform capital rotation or re-allocation,” describing the error as a familiar risk in automated yield systems.
The project holds about $61.8 million locked, according to available platform data, and said it will strengthen guardrails. YO Protocol added, “While automation is critical for scalability and efficiency, it must be supported by rigorous guardrails,” and confirmed that additional safeguards are now in place.
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