Yield Protocol
Summary
Yield Protocol was a decentralized finance protocol offering fixed-rate, fixed-term borrowing and lending on Ethereum and Arbitrum, launched in October 2020 and funded by Paradigm. It suffered multiple security incidents including collateral damage from the March 2023 Euler Finance hack and a critical smart contract vulnerability patched via Immunefi in April 2023, before announcing a full wind-down in October 2023 citing insufficient demand and regulatory pressure. After official operations ceased in December 2023, abandoned smart contracts on Arbitrum were exploited in April 2024 for approximately $181,000 via a flash loan attack on pool balance discrepancies.
Connected Entities
1 entitiesTimeline(10 events)
2020-10-01
Yield Protocol launches on Ethereum, offering fixed-rate collateralized borrowing and lending via fyTokens.
2021-06-23
Yield Protocol closes a $10 million Series A funding round led by Paradigm, with participation from Framework Ventures, Symbolic Capital Partners, CMS Holdings, Variant, and the DeFi Alliance.
2022-04-01
Yield Protocol reaches its peak total value locked of over $22 million.
2023-03-13
Euler Finance suffers a $197 million flash loan exploit. Yield Protocol, which held assets in Euler-based pools, suffers collateral losses estimated under $1.5 million.
2023-04-28
Whitehat Paludo0x responsibly discloses a critical logic error in Yield Protocol's strategy contract burn() function via Immunefi. Approximately $950,000 in funds protected. Bounty of $95,000 USDC awarded.
2023-07-01
Yield Protocol confirms full recovery of funds lost in the March 2023 Euler Finance hack, after the Euler hacker returned stolen assets.
2023-10-04
Yield Protocol announces permanent wind-down by end of December 2023, citing insufficient demand for fixed-rate borrowing and regulatory pressures in the U.S., Europe, and U.K.
2023-12-29
Yield Protocol's final December series matures. All borrowing and lending operations officially cease.
2024-02-02
Yield Protocol formally ends all official support.
2024-04-30
An attacker exploits abandoned Yield Protocol smart contracts on Arbitrum via a flash loan attack targeting a discrepancy between pool token balance and total supply. Approximately $181,000 drained. PeckShield first alerts; CertiK confirms. No team response due to protocol being defunct.
Decision Log
- hash: 6GckWqaX3nbQLbafZAfgkFc9qBpifVZQSMxQABCasEKd
This investigation is cryptographically anchored to the Solana blockchain and source URLs are archived via the Internet Archive.
model: claude-sonnet-4-6
generated: 5/4/2026, 2:54:32 AM
last updated: 5/30/2026, 5:05:30 AM
avoid.net — verified advice for a post-truth world