Yam Finance Blocked A Malicious Proposal From Governance Attack

Yam Finance blocked a malicious proposal from starting a governance attack and protected the treasury worth $3.1 million so let’s read more today in our latest cryptocurrency news.

The team behind Yam Finance battled a malicious governance attack and protected the treasury worth millions. Yam Finance attracted more than $400 million in funds from the yield farmers on the first day and the project collapsed then but the unaudited smart contract inflated the number of YAM tokens by 10x which rendered governance decisions impossible. The project now lives in the new form after getting $115,000 in donations to execute a security audit. The latest governance attack put the project back into the spotlight:

“Earlier today, there was a governance attack on the DAO that has been thwarted.”

According to the reprots by the team, the attacker issued a malicious governance proposal with the spam description with the goal to gain control of the project’s treasury. According to the Etherscan data:

“Contributors comps for May, backpay for VDM, settling synths tokens and success tokens, sending settled rewards tokens to reserves, sending and withdrawing test Uma, and claiming sushi for reserves.”

 

After the proposal was created, the attacker voted on the proposal using 224,739 YAM tokens. The native token for Yam Finance now trades at $0.11 down by 2.5% in the past day. Before the execution, the team was able to cancel the proposal via their privileges and blocked the malicious attack but then the proposal was canceled three hours after being created. If executed, the exploiter made the admission of the funds held by Yam worth $3.1 million per the data of DeepDAO. After the token’s slide, last week the YAM community voted on the proposal dubbed “redemption Proposal” which will allow Yam tokens to redeem the tokens for $0.25 from the treasury. The proposal was passed with 54.14% of the voters supporting the proposal.

The team behind Yam Finance suggested a new vote on the proposal to allow more time to discuss the issue so the team also said that they don’t agree with it:

“As some of you may have noticed, there was a snapshot vote recently that proposes to make the treasury redeemable at a pro-rata rate. So given the magnitude of a vote like this, combined with lack of communication and transparency, we propose a re-vote on this proposal with ample time to discuss.”