Recently, the DeFi ecosystem has experienced another crash. Security teams monitoring with Phalcon discovered that the YO protocol on Ethereum had an abnormal transaction— the initiator used $3.84 million worth of stkGHO to exchange for only $122,000 USDC, resulting in heavy losses.

What exactly happened? The team quickly took remedial action afterward, buying GHO tokens and re-depositing them into the vault. According to the investigation report, this incident mainly stemmed from two issues: first, the output quote set by the initiator was particularly poor; second, the slippage protection mechanism was ruthlessly disabled.

In simple terms, this is a classic DeFi risk case—improper transaction path setup combined with security protections being rendered ineffective, directly leading to massive losses. It serves as a reminder to all participants that when interacting with DeFi, they must carefully check transaction parameters, especially those involving cross-protocol exchanges, and never turn off slippage protection. As a stablecoin ecosystem component, GHO incidents like this are also worth paying attention to.