BY yield source update


This post summarizes the actions taken by Idle Leagues to minimize risks related to the CRV exposure on Aave lending markets.



Gauntlet risk assessment

On June 12th, the Gauntlet team shared a recommendation to freeze CRV and set CRV’s loan to value to 0 on Aave v2 in the Aave forum.

The risk profile of 0x7a16ff8270133f063aab6c9977183d9e72835428, had an HF of 1.66 and did not represent an immediate risk to Aave v2, but the proposal suggested reducing risk concentration. The account borrows roughly $67.7m of stablecoins ($67m USDT, $700k USDC) against $185m of CRV and $4m of TUSD.

Curve exploit

On July 30th, a series of exploits resulted in the loss of funds from several Curve pools. The source of the vulnerability in each case was a malfunctioning reentrancy lock in certain versions of Vyper (versions 0.2.15, 0.2.16, and 0.3.0).

The Table below, based on Llama Risk postmortem analysis, shows the affected pools, the amount extracted by each exploit and the USD value at the time of the exploit:

Pool Token stolen $ token stolen Exploit tx
pETH/ETH 6,107 WETH ~$11m Link
msETH/ETH 867 WETH and 960 msETH ~$3.4m Link
alETH/ETH 7,259 WETH and 4,822 alETH ~$22.6m Link
CRV/ETH 7,680 WETH, 2,880 ETH and 7,193,402 CRV ~$24.7m Link 1, 2

This hack significantly impacted CRV, down 10% in the past 48 hours, and raised concerns about the health of multiple on-chain loans: mainly on Aave and FraxLend. As an indirect consequence, utilization and rates skyrocketed during the weekend.


Idle Leagues in reaction to the Gauntlet proposal and suggestions (the related AIP-246 did not pass), decided to pause Aave v2 right after as an underlying market for the Senior DAI, USDC and USDT Best Yields vaults for precautionary reasons and to prevent further escalations of risks.

In light of the recent issues affecting CRV and indirectly Aave, the decision to pause Aave avoided automatic rebalances of BY funds to a lending market under stress and shielded users’ funds from excessive risk exposure.

A similar approach was held for Junior BY vaults on DAI, USDC and USDT where the Morpho-Aave underlying yield markets were paused.

Consequently, funds deposited into the DAI, USDC, and USDT BY vaults are currently allocated among the other underlying markets:

  • Senior BY :shield:: Compound and Clearpool Senior YTs
  • Junior BY :zap:: Clearpool Junior YTs

Next steps

Leagues will continue to monitor how the CRV issue evolves and adjust promptly the Best Yield yield sources. If a more formal de-listing will be needed an official on-chain vote will be run.


With this post, we want to confirm that the Aave v2 market has been re-enabled on both the Senior and Junior vaults

  • Senior BY :shield:: Aave, Compound and Clearpool Senior YTs
  • Junior BY :zap:: Morpho-Aave, Clearpool Junior YTs

The decision comes after the actions taken by Curve to decentralize CRV holding through a series of OTC deals with key players in the space and the minimal borrowing activity of 0x7a16ff8270133f063aab6c9977183d9e72835428 on Aave ($67m vs $7m).