Liquid-Staking

Liquid Staking allows users to earn staking rewards while maintaining the liquidity of their assets through Liquid Staking Tokens (LSTs).Unlike traditional staking, protocols like Lido and Rocket Pool issue a receipt token (e.g., stETH) that can be used across DeFi for lending or yield farming. In 2026, the sector has expanded into Restaking via EigenLayer, further increasing capital efficiency. This tag explores the balance between network security and liquidity, the rise of LRTs (Liquid Restaking Tokens), and PoS yield optimization.

88 Articles
Created: 2026/02/02 18:52
Updated: 2026/02/02 18:52
Yearn Finance Suffers $9M Breach As Attacker Creates Endless yETH Tokens

Yearn Finance Suffers $9M Breach As Attacker Creates Endless yETH Tokens

Yearn Finance reported that a legacy yETH product was hit by an exploit that allowed an attacker to mint a massive amount of fake tokens and swap them for real assets. Related Reading: Bitcoin Miners Face A Harsh December: Rising BTC Difficulty, Falling Hashprice According to on-chain alerts and protocol statements, the attacker created a near-infinite supply of yETH in a single transaction, then used those tokens to pull ETH and liquid-staking derivatives from liquidity pools. The incident was first flagged on November 30, 2025, and the total impact has been reported at roughly $9 million. #PeckShieldAlert Yearn Finance @yearnfi suffered an attack resulting in a total loss of ~$9M. The exploit involved minting a near-infinite number of yETH tokens, depleting the pool in a single transaction. ~1K $ETH (worth ~$3M) was sent to #TornadoCash, while the exploiter’s… pic.twitter.com/IXNygpwoWa — PeckShieldAlert (@PeckShieldAlert) December 1, 2025 How The Exploit Worked Based on reports, the attacker took advantage of a flaw in the yETH minting logic and produced tokens on the order of 235 trillion in one go. Those worthless tokens were then swapped for real assets from Balancer and Curve pools tied to the product, emptying liquidity in minutes. Chain monitors and security researchers showed the mint and subsequent swaps unfolding very quickly on the blockchain. At 21:11 UTC on Nov 30, an incident occurred involving the yETH stableswap pool that resulted in the minting of a large amount of yETH. The contract impacted is a custom version of popular stableswap code, unrelated to other Yearn products. Yearn V2/V3 vaults are not at risk. — yearn (@yearnfi) December 1, 2025 What Assets Were Taken Reports have disclosed that roughly $8 million was pulled from the main yETH stable-swap pool, while about $0.9 million was taken from a yETH–WETH pool. In addition, roughly 1,000 ETH—valued at about $3 million at the time of movement—was sent to Tornado Cash in attempts to obscure the trail. The attacker converted fake yETH into a mix of ETH and liquid staking tokens before attempting to launder funds. Impact On Yearn’s Core Products According to Yearn officials and follow-up coverage, the breach was limited to an older, legacy implementation of the yETH product and did not affect Yearn’s main V2 and V3 vaults. Deposits into the affected pool were isolated while the team and outside experts began an investigation. This isolation is said to have kept the bulk of user funds in active vaults from being touched. Market Reaction And Wider Concerns Crypto markets saw selling pressure as the news spread, with traders weighing the risk that comes from combining liquid staking tokens with custom swap code. Related Reading: Bitcoin Sentiment Sparks CZ Comment: Sell Greed, Buy Fear Yearn Finance said it is working with outside security teams to run a post-mortem and to patch the vulnerability. Based on reports, teams named in coverage include external auditors and blockchain investigators who are tracking the stolen funds and advising on recovery options. The protocol’s notice warned users about the affected legacy product and urged caution while the review continues. Featured image from Unsplash, chart from TradingView

Author: NewsBTC
Yearn Finance Probes yETH Vault Exploit Involving Potential $3M ETH Loss

Yearn Finance Probes yETH Vault Exploit Involving Potential $3M ETH Loss

The post Yearn Finance Probes yETH Vault Exploit Involving Potential $3M ETH Loss appeared on BitcoinEthereumNews.com. The Yearn Finance yETH exploit resulted in a $3 million loss when an attacker exploited a smart contract vulnerability in the liquid-staking index token, allowing infinite minting and draining the pool in one transaction. The attack was isolated to the yETH vault, with other Yearn vaults remaining secure. Exploit details: A hacker targeted the yETH smart contract flaw to mint excessive tokens. Immediate response from Yearn Finance confirmed the isolation to the yETH pool only. Broader impact: Part of a trend where DeFi lost $127 million to hacks in November 2025, per blockchain security reports. Discover how the Yearn Finance yETH exploit unfolded, its $3M impact on DeFi, and security lessons for investors. Stay informed on crypto risks and protections today. What is the Yearn Finance yETH Exploit? The Yearn Finance yETH exploit involved an attacker draining approximately $3 million in ETH from the yETH vault through a vulnerability in its smart contract. This liquid-staking index token, designed to aggregate staking positions, allowed the hacker to mint an infinite supply of tokens in a single transaction, effectively emptying the pool. Yearn Finance quickly isolated the issue, confirming no impact on its V2 and V3 vaults. How Did the Attacker Exploit the yETH Vulnerability? The exploit targeted a flaw in the yETH smart contract that bundles multiple liquid staking tokens into a tradable index. Blockchain analysis revealed the attacker manipulated the minting mechanism, creating an overflow that permitted unlimited token issuance without sufficient backing. This led to the rapid withdrawal of funds, highlighting risks in complex DeFi indexing tools. Security experts, including those from blockchain monitoring firms, note that such vulnerabilities often stem from unhandled edge cases in contract logic, even in audited code. In this case, the attacker netted around 1,000 ETH after sacrificing some collateral, as observed in on-chain…

Author: BitcoinEthereumNews
Balancer Suffers $128.64 Million Hack in One of 2025’s Most Advanced DeFi Hacks

Balancer Suffers $128.64 Million Hack in One of 2025’s Most Advanced DeFi Hacks

In one of the most complex DeFi attacks of 2025, Balancer protocol lost more than $128M when hackers exploited a vulnerability in its v2 Stable Pools.

Author: Crypto Breaking News
Experts: Crypto’s $1 Trillion Yield Opportunity Lies in Liquid Staking Derivatives and Tokenized RWAs

Experts: Crypto’s $1 Trillion Yield Opportunity Lies in Liquid Staking Derivatives and Tokenized RWAs

The post Experts: Crypto’s $1 Trillion Yield Opportunity Lies in Liquid Staking Derivatives and Tokenized RWAs appeared on BitcoinEthereumNews.com. A recent study found that only 8% to 11% of the $3.2 trillion cryptocurrency market generates yield—a five- to sixfold disparity compared with traditional finance, where 55% to 65% of capital is yield-bearing. Experts say the gap is a major barrier to institutional adoption, noting that institutions require “predictable, auditable yield,” which in crypto remains […] Source: https://news.bitcoin.com/experts-cryptos-1-trillion-yield-opportunity-lies-in-liquid-staking-derivatives-and-tokenized-rwas/

Author: BitcoinEthereumNews
Trump's CFTC Pick, Mike Selig, Clears Hurdle on Way Toward Confirmation Vote

Trump's CFTC Pick, Mike Selig, Clears Hurdle on Way Toward Confirmation Vote

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Author: Coindesk
Core Foundation Wins Injunction Against Maple Finance on Alleged Confidentiality Breach

Core Foundation Wins Injunction Against Maple Finance on Alleged Confidentiality Breach

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Author: Coindesk
Best Altcoins to Buy as Bitcoin Slips and Altcoin Season Rumors Return

Best Altcoins to Buy as Bitcoin Slips and Altcoin Season Rumors Return

Quick Facts: ➡️ Bitcoin’s slide under $90K and a dip in $BTC dominance are classic ingredients for a later-cycle rotation into higher-beta altcoins. ➡️ Altcoin ETF approvals, especially around assets like Solana and XRP, are quietly shifting institutional focus away from Bitcoin and toward broader market exposure. ➡️ Best Wallet Token ($BEST) is positioned as […]

Author: Bitcoinist
Flare TVL Nears Record High as Firelight Teases XRP Liquid Staking

Flare TVL Nears Record High as Firelight Teases XRP Liquid Staking

The post Flare TVL Nears Record High as Firelight Teases XRP Liquid Staking appeared on BitcoinEthereumNews.com. Flare’s TVL climbs again as Firelight prepares to unlock DeFi access for XRP holders. Flare, a Layer 1 network best known for bringing XRP into DeFi, is nearing its recent peak in total value locked (TVL) as liquid staking protocol Firelight prepares to launch on the Flare mainnet by the end of November. Flare’s mainnet, launched in July 2022, peaked at $208.9 million in TVL on Oct. 30. The surge came around the same time asset manager Teucrium filed with the U.S. Securities and Exchange Commission for a potential exchange-traded fund tied to Flare’s native token, FLR. Flare TVL Since then, TVL has slipped to around $174 million in early November but is now climbing again, standing at around $203 million at press time, per data from DefiLlama. XRP Liquid Staking The renewed liquidity influx comes as Firelight, a liquid staking protocol for XRP, prepares to deploy on Flare later this month. While other Flare protocols also allow XRP holders to lock their tokens to obtain a Flare-based representation for DeFi, those tokens are usually locked and can’t be freely used. Firelight is expected to allow holders to lock their XRP and receive a liquid stXRP token for use in Flare’s DeFi sector, a capability not previously available for XRP tokens. That also gives XRP holders more ways to access liquidity. For comparison, the XRP Ledger has only about $83.5 million in TVL, making Flare’s total roughly 2.4 times larger. According to a press release shared with The Defiant, capital deployed on Firelight “will be allocated to provide an institutional-grade solution for on-chain risk, backed by XRP staking.” Meanwhile, Xaman Wallet, set to launch later in December, will let users on XRP Ledger send transactions on Flare without moving their tokens off the network, “bridging liquidity and yield between the…

Author: BitcoinEthereumNews
Ethereum Price Prediction: ETH To Rally Towards $4K This Week, These ETH Tokens May Go Parabolic

Ethereum Price Prediction: ETH To Rally Towards $4K This Week, These ETH Tokens May Go Parabolic

The post Ethereum Price Prediction: ETH To Rally Towards $4K This Week, These ETH Tokens May Go Parabolic appeared on BitcoinEthereumNews.com. Institutional positioning is strengthening across major assets, and traders are returning to Ethereum tokens with increased confidence. The current sentiment behind the latest Ethereum Price Prediction points toward meaningful upside, especially with liquidity rotating from inactive capital pools into networks that already support high-value DeFi, staking and scaling ecosystems. With buzz building around smart-contract platforms and stable-yield protocols like Ethena, market focus is shifting back to established infrastructure. At the same time, utility-driven entrants like Remittix (RTX) continue attracting attention for their payments-first model presenting a contrast to speculative assets. Ethereum Price Prediction Strengthens As Bulls Target $4K Ethereum trades with fresh impetus as traders look forward to a push toward the $4,000 region. ETH is sitting at $3,400.00, up 6.78% in the last 24 hours, with a market value of $416.33 billion and a trading volume of $39.66 billion, up 4.66% on the day. Analysts note consistent buy-side flows from both DeFi participants and institutional desks building risk back into portfolios. Ethena continues to benefit from Ethereum’s strengthening market structure. Ethena trades at $0.3200, recording a 4.83% daily increase, with $2.38 billion in market capitalization and $375.64 million in volume, up 61.32%. As a yield-focused synthetic dollar project built on Ethereum rails, Ethena mirrors the broader shift toward liquid-staking strategies and capital-efficient DeFi models. Market watchers highlight that while Solana has captured fast-settlement attention, Ethereum remains the core liquidity anchor particularly for long-duration capital, protocol-driven incentives and institutional structured products. Remittix: Payment-Layer Adoption Amid Ethereum Upside With Ethereum reclaiming strength and Solana maintaining competitive speed benchmarks, Remittix is emerging within the real-world payments niche. Trading at $0.1166 per token the project has secured more than $28 million from private funding while distributing over 684.5 million tokens as participation grows. Remittix provides direct crypto-to-bank transfers in more than 30 countries,…

Author: BitcoinEthereumNews
Lido adopts Chainlink CCIP to secure cross-chain wstETH transfers across 16+ blockchains

Lido adopts Chainlink CCIP to secure cross-chain wstETH transfers across 16+ blockchains

Lido is integrating Chainlink’s interoperability standard to power wrapped Staked Ether (wstETH) transfers. The Chainlink cross-chain interoperability protocol (CCIP) is now the official cross-chain infrastructure for wstETH. wstETH will implement CCIP on supported chains in stages. Lido, a leading liquid staking protocol on Ethereum, has announced a strategic partnership with Chainlink.  The protocol has adopted […] The post Lido adopts Chainlink CCIP to secure cross-chain wstETH transfers across 16+ blockchains appeared first on CoinJournal.

Author: Coin Journal