Yam Finance stops a governance attack meant to seize control of company treasury

Yam Finance, a decentralized finance (DeFi) system, claimed on Saturday that it successfully thwarted a hostile governance attempt to hand over management of its reserves to an unidentified third party.



The attack, according to a preliminary report released by Yam DAO, began on July 7 but was discovered two days later.


Internal transactions used by the attacker to submit a governance request made it difficult for community members to become aware of it.


This dishonest governance proposal featured an unconfirmed contract that would transfer management of Yam's reserves to an attacker-controlled wallet address.


Before the Yam Finance team intervened, the rogue actor was able to assemble a quorum for the proposition that was in danger of passing.


According to statistics from DeepDAO, the attack would have been able to empty the Yam Finance treasury, which at the moment has crypto assets valued at $3.1 million.


The attack, according to Yam Finance, was identical to another effort that was undertaken in December 2021.


The attack on Saturday occurred in the midst of another dispute over governance inside the Yam ecosystem that also involved the project's finances.


A snapshot vote, was at issue; it sought to make the project's treasury redeemable at a pro-rata rate.


Despite the fact that the initial snapshot vote passed with a margin of more than 54%, there are already requests for the procedure to be repeated.

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