Yield Protocol (YO) suffered a roughly $3.73 million loss on Tuesday, Jan. 13, after a vault swap turned about $3.84 million worth of stkGHO, a staked version of Aave’s GHO stablecoin, into only around $122,000 in USDC, according to blockchain security firms PeckShield and BlockSec.
PeckShieldAlert said in a post on X that the loss happened during a swap from stkGHO to USDC due to extreme slippage. Slippage occurs when a trade executes at a worse price than expected, often during fast market moves or when there isn’t enough liquidity for a large trade.
BlockSec said the swap took place on Ethereum and described it as a “bizarre” trade. Meanwhile, QuillAudits said the trade may have been routed through a Uniswap v4 pool, which uses “hooks” that can make swaps more complex and harder to predict.
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