DeFi protocol YO Protocol experienced an abnormal swap event on the Ethereum blockchain.

According to a post on the X platform by Odaily, the DeFi protocol YO Protocol experienced an abnormal swap event on Ethereum, where users exchanged approximately $3.84 million worth of stkGHO for only about $122,000 worth of USDC. Analysis suggests the incident was caused by a combination of factors: 1) the initiator submitted an incorrect estimated output value, rendering slippage protection ineffective; 2) an abnormal transaction path configuration, passing through a high-fee, low-liquidity pool, resulting in significant fee extraction and price fluctuations. The team has since purchased GHO and re-deposited it into stkGHO in an attempt to mitigate the damage.