The YFValue protocol, which is one of the decentralized finance projects, was announced on the 16th of August. The project aims to provide real value in financing yield cultivation and make it accessible to all users regardless of the size of their investment.

A little over a week later, it turns out that more than $170 million worth of cryptocurrencies locked into this state-of-the-art protocol are at risk of being shut down by virtue of the control of a single contract.

$130 million in YFV at risk of closure:

Money continues to flow into decentralized finance (DeFi) as the total value locked into decentralized finance protocols approaches $7 billion, according to DeFi pulse.

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New protocols are released every day, and investors are racing to be among the first to take advantage of the insanely high rates of return.

One such project is the YFValue project, which was launched last August 16th.

In less than ten days, the protocol saw more than $120 million locked in.

At the moment, it appears that the funds deposited in the project are at risk of being closed by a single contract owned by a single person.

The issue was pointed out by a Twitter user who outlined some of the challenges the project is facing.

Besides YFV coin mining, farmers are also mining two additional coins for the same YFValue protocol:

VETH and vUSD.

Each of these two currencies has a set of tools that can only be modified by one owner.

What will happen if the owner removes the contracts from the mint?

While discussing the technical aspects, the aforementioned Twitter user concluded that this means that $170 million in funds are at risk of being locked out by a single owner.

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YFV’s booked value has since fallen to about $130 million at the time of writing.

Problem confirmed, solution plan developed:

In a detailed post by the YFValue team, the issue is confirmed and addressed further.

The YFValue team post stated:

Over the past 24 hours, several community members have correctly identified a major oversight and exploit related to vUSD and vETH which would enable the lock-in of funds after the current era is over.

Therefore, the team will retain ownership of the keys in question until such time as the investors can recover the funds.

The team decided to transfer the ownership of these keys to a “multisig” wallet that is controlled by more than one person for flexibility in future governance decisions.

For this to happen and the new update to be applied, the team has until August 25 to transfer ownership of YFV under their control and make it into a multi-signature wallet, and they are looking for reputable and trusted people to do so.

Some of the names suggested by the community include:

• Vitalik Buterin – Founder of Ethereum
• Andre Crone from the YFI project
• Brendan Esch – CEO of BAT
• Sergey Nazarov – CEO of Chainlink.
• Michael Jo – Founder of Boxmining

BoxDAO vote. Do I have to help sign the YFV dollars A multi-signature contract?

Read:The Ethereum network is preparing for the next update of the network in December

– Boxmining (boxmining) August 24, 2020

In this regard, Michael Joe, founder of Boxmining, said:

YFI brings a whole new class of return pools to improve DeFi returns.

Developers are frantically publishing very innovative ideas and solutions.

However, we must ensure that these products are safe.

Some recent bugs have shown that more audits are needed, and that developers need to be tougher.

In any case, all of the above illustrates the risks of the new DeFi protocols and that investors should always conduct their research very carefully.

Lots of startups are being heavily promoted on social media as the next big thing, which is causing a lot of FOMO among many investors.

There are many examples of failed experiments, such as the YAM project, which collected large sums of money and then stopped as a result of a technical error. Therefore, caution is a duty, and to be well informed about the project and its mechanisms, to research and delve into it, and not to be satisfied with the promises made on Twitter and other social media that depict the crypto project announced on It’s the next bitcoin.

Read also:

YFI coin is trading at a higher price than bitcoin and becomes the most expensive digital currency in the crypto market

Is DeFi’s Significant Growth Exaggerated?