YO: yoUSD Treasury has been fully deployed and standardized trading protection measures across all systems

Foresight News reports that the DeFi protocol YO has released an event analysis of yoUSD. The incident was triggered when YO’s Automated Harvesting System accidentally exchanged assets that exceeded the harvest rewards. Since stkGHO serves as both the target token for harvest rewards and the principal in the treasury, abnormal configuration boundary conditions were triggered. The harvester attempted to exchange the entire stkGHO balance (principal plus rewards) in the treasury, and this transaction was executed at an extreme price according to the quotes from the decentralized exchange aggregator, without being rejected by the harvester system. Although the harvester set slippage parameters, these controls only monitored price fluctuations during execution and did not verify whether the initial quote was reasonable, exposing the system to the risk of extreme price shocks.

Currently, the yoUSD treasury is fully operational and funds are secure. Additionally, user balances remain unaffected, and the protocol’s solvency has not been impacted. To prevent similar incidents in the future, YO has implemented systemic reforms and standardized trading safeguards across all systems.

Foresight News previously reported that, according to Defimon monitoring, the YO Protocol suffered approximately $3.7 million in losses due to a bad swap of yoUSD. On-chain data shows that YoVault operators exchanged $3.84 million worth of stkGHO for only about $112,000 USDC, with the approximately $3.7 million difference captured by Uniswap v4 liquidity providers (LPs).