Update, as of February 9, 2021:
The DAI vault has been restored, and the exploit has been addressed. Yearn will facilitate all refunds. With this news, we will start to reopen DAI deposits into the YFI protocol tonight for our Earn product.
- DeFi protocol Yearn suffered an exploit on Feb 4.
- Some OKCoin customers were affected.
- OKCoin will ensure that all affected customers do not suffer losses from this incident.
OKCoin’s Earn feature allows you to invest your crypto funds into external DeFi protocols and earn yield, without the hassle and fees of using DeFi protocols directly. However, even when using Earn via OKCoin, investors still take on the potential risks (as well as the rewards) of using these DeFi protocols, which are entirely out of OKCoin’s control.
Unfortunately, one of the protocols available on OKCoin's Earn tool, Yearn, suffered an exploit to its DAI Vault on Feb 4, 2021. The incident resulted in the protocol incurring losses of $11 million in DAI. While the Yearn team took quick steps to mitigate the situation, some OKCoin user funds were affected.
OKCoin also took action immediately to protect our customers' funds. We froze deposits to and withdrawals from the Yearn DAI Vault, alerted impacted users, communicated via our social media channels, and are coordinating a response from the Yearn team. In addition, we are committed to making sure affected OKCoin customers do not suffer losses from this incident.
OKCoin will return in full the DAI that customers deposited into the Yearn DAI Vault via OKCoin Earn, as well as the rewards that customers earned on their DAI prior to Feb 3, 2021. The full amount (principle plus rewards) will be returned to users' accounts no later than Feb 24, 2021.
To clarify, this is not an exploit of OKCoin. After investigating the Yearn exploit and how it affected some OKCoin customers, we have decided to cover potential losses to our customers caused by the incident, as a courtesy.
DeFi is still high-risk
Investing funds in DeFi protocols comes with both high risk and high reward. We created Earn on OKCoin to make the experience of investing in DeFi as painless as possible, bringing our customers direct access to numerous high-yield DeFi protocols via a single user-friendly interface on our trusted, secure platform.
However, as we've seen with this exploit of the Yearn protocol, and past exploits of other DeFi protocols, the space of decentralized finance is still emerging, developing and thus high-risk. Please trade wisely.
FAQ for affected customers
1. Do I need to do anything to get back my DAI?
No, you do not need to take any action to get your DAI back. We will return the full amount of DAI that you deposited into the Yearn DAI Vault via OKCoin's Earn tool, plus the interest you earned (up to Feb 3).
2. Will I get back the DAI I deposited, and the interest I earned on it?
Yes. OKCoin has decided to reimburse our Earn customers who were affected by the Yearn protocol exploit with the principal DAI you deposited, plus any rewards you earned up until February 3rd.
3. When will I be able to access the DAI I deposited in the Yearn DAI Vault on Earn?
The full amount (principle plus rewards) will be returned to users' funding accounts no later than Feb 24, 2021.
4. What if the Yearn team fully reimburses all users?
We will provide you with additional information as the situation changes.
5. What if I want to leave my DAI in the Yearn DAI Vault?
In order to protect our customers' funds from potential losses, we have suspended access to the Yearn DAI Vault via OKCoin Earn for all customers. Customers may choose to deposit their DAI into the Compound Vault instead. We apologize for any inconvenience this may cause.
We will continue to keep our customers updated on this situation as it develops. In the meantime, please reach out to firstname.lastname@example.org if you have any questions.