Yield Protocol has recovered completely from the Euler hack and is now waiting for users to exchange their tokens.

On June 27th, Yield Protocol announced that it had fully recovered from the Euler flash loan attack. Liquidity providers can now update their strategy tokens, according to the protocol’s Twitter. This was the final step in the protocol’s recovery after a “long journey.”

Yield Protocol was one of 11 decentralized finance protocols that suffered losses following the attack on the non-custodial lending protocol, Euler Finance. It stopped mainnet borrowing after the hack on March 13th and claimed losses from its liquidity pools were under $1.5 million. Euler lost over $195 million in the attack.

On May 18th, Yield Protocol announced that it was “back in full swing” and that users could borrow and lend for the June and September series. It stated at that time that it would take “about a week” for users to be able to claim replacement tokens.

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Yield Protocol worked with Euler to return the funds after Euler recovered most of its losses from the hackers in April, as recounted in a blog post. It then went through the complex process of deploying 26 new contracts and executing about 300 permissioned calls to reset the fixed-yield token maturities and restore the protocol.

Protocol restoration on Mainnet is complete! We have now fully recovered the protocol from the Euler hack and the liquidity provider bug. LPs are once again earning fees. To withdraw, LPs need to first upgrade their strategy tokens. View instructions here https://t.co/wVbPXrJKsy

— Yield Protocol (@yield) June 27, 2023

Users can make themselves whole by swapping their liquidity provider tokens for new ones that were minted during the restoration process. The bloggers commented:

“We are fortunate that the outcome of this hack will not result in losses to the Yield community. Nevertheless, it has been a very long journey back to full protocol restoration.”

In May, Yield Protocol also weathered the discovery of a bug in its strategy contracts that required it to pause the protocol for two weeks.

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