YO Protocol lost $3.7 million due to an erroneous transaction, then repurchased through multisig to cover the deficit

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

Several hours after the incident, the protocol's multi-signature wallet purchased approximately 3.71 million GHO via CoW Swap and re-deposited stkGHO into the vault to cover the loss. During this period, the YoUSD market on Pendle was briefly suspended and has now resumed after the funds were deposited.