In May, the decentralized borrowing and lending market, which operates without requiring permission and utilizes collateralized fixed-rate mechanisms, resumed its operations and is currently in the process of exchanging user tokens valued at $1.5 million.
On June 27, Yield Protocol made an official announcement stating that it has successfully achieved a full recovery from the Euler flash loan attack. The protocol took to Twitter to inform liquidity providers that they can now proceed with updating their strategy tokens, marking the final step in the restoration process after a challenging journey.
Yield Protocol was among the eleven decentralized finance protocols that incurred losses due to the attack on Euler Finance, a noncustodial lending protocol. Following the hack on March 13, Yield Protocol temporarily halted mainnet borrowing and reported losses of less than $1.5 million from its liquidity pools. Euler Finance, on the other hand, suffered losses exceeding $195 million in the attack.
Yield Protocol made an announcement on May 18, declaring that it had fully resumed its operations and users were now able to engage in borrowing and lending activities for the June and September series. The protocol mentioned that users would be able to claim replacement tokens within approximately one week from that date.
According to a blog post by Yield Protocol, they collaborated with Euler to facilitate the return of funds after Euler managed to recover a significant portion of its losses from the hackers in April. Subsequently, Yield Protocol underwent a meticulous process involving the deployment of 26 new contracts and the execution of around 300 permissioned calls. This process aimed to reset the maturities of fixed-yield tokens and restore the functionality of the protocol.
By exchanging their existing liquidity provider tokens with newly minted ones generated during the restoration process, users will be fully compensated.
In addition, during the month of May, Yield Protocol encountered a bug in its strategy contracts, which necessitated a temporary suspension of the protocol for a duration of two weeks.
Euler Finance Was Earlier Reported To Integrate Chainlink Price Feeds On Ethereum.
