BlockSec Detects Abnormal YO Protocol Transaction on Ethereum

By: crypto insight|2026/01/13 23:30:08

Key Takeaways

An anomaly occurred on YO Protocol resulting in the exchange of approximately $3.84 million worth of stkGHO for just about $122,000 in USDC.
BlockSec attributes the discrepancy to a wrong output quote disabling slippage protection and ill-advised routing with high fees.
This error caused significant fee extraction and severe price impacts due to low liquidity in the chosen pool.
YO Protocol functions as a yield optimizer by reallocating capital across multiple DeFi protocols and blockchains based on Exponential.fi’s ratings.

WEEX Crypto News, 13 January 2026

Untangling the YO Protocol Transaction Anomaly

The blockchain world recently witnessed an unusual event concerning YO Protocol, a platform recognized for optimizing yield across various DeFi networks. According to BlockSec’s monitoring data, a highly irregular transaction on Ethereum led to a stark discrepancy in value exchange. Approximately $3.84 million in stkGHO was converted into a mere $122,000 in USDC, as detailed by the monitoring experts.

Possible Causes of the Transaction Error

BlockSec has identified two main reasons behind this anomaly. Firstly, the trader involved in the transaction provided an incorrect output quote. This error effectively disabled the essential slippage protection that typically guards against such severe mismatches in expected versus actual outcomes. Slippage protection is a crucial mechanism in DeFi transactions designed to avert substantial losses by accounting for potential price movements during the transaction process. Without this safety net, the transaction was left vulnerable to the turbulence of market shifts.

Secondly, the routing of the transaction was flagged as abnormal. It was directed through a pool characterized by exorbitantly high fees and low liquidity. The choice of pathway tragically resulted in excessive fee extraction, leaving a significant dent in the transaction’s value. Such circumstances highlight the importance of strategic routing in executing transactions within the crypto space, as they can heavily influence the net outcome.

Understanding YO Protocol’s Functionality

YO Protocol stands out as a yield optimization tool that spans across multiple blockchains. Its core functionality is centered around automating yield generation, an endeavor that involves the continuous reallocation of user deposits to the most profitable pools. This adaptability relies on Exponential.fi’s trusted risk ratings to ensure not just the maximization of returns but also prudent risk management. The protocol endeavors to mitigate the complexities inherent in DeFi yield farming by offering a cross-chain, risk-adjusted yield optimization approach.

What’s distinctive about YO Protocol is its capability to abstract the need for manual intervention, thus simplifying the user’s experience. By algorithmically repositioning assets, YO aims to consistently balance diversification and yield potential, making it an attractive choice for both seasoned and novice cryptocurrency investors.

Implications for DeFi Transactions

This irregular transaction event underscores the critical nature of robust security and monitoring mechanisms in DeFi operations. As the space continues to grow, so does the need for advanced platforms like BlockSec, whose mandate includes the detection and mitigation of potential threats to transactional integrity. This anomaly serves as a reminder of the vulnerabilities within the DeFi ecosystem and the perpetual need for vigilance and technological improvement.

Moreover, the event reflects on the necessity for clear communication and procedural accuracy within protocols to prevent such costly errors. The conditions leading to this anomaly could serve as a learning opportunity, prompting reviews of protocol enactments and decision-making processes to enhance overall system robustness.

Engaging with WEEX for Improved Investment Safety

This incident acts as a pertinent reminder for investors to seek platforms that prioritize security and transparency. Utilizing platforms like WEEX, which offer robust risk management and monitoring capabilities, can mitigate similar incidents. To explore a secure trading environment and make well-informed investment decisions, consider signing up with WEEX [WEEX Sign Up](https://www.weex.com/register?vipCode=vrmi).

Frequently Asked Questions

What caused the discrepancy in the YO Protocol transaction?

The discrepancy arose due to a combination of an incorrect output quote disabling slippage protection and a flawed routing approach. The latter led the transaction through a pool with high fees and low liquidity, causing significant fee extraction and adverse price consequences.

How does YO Protocol optimize yield?

YO Protocol optimizes yield by reallocating user deposits across various DeFi protocols based on real-time evaluations and trusted risk assessments. It achieves this without requiring manual input, thereby simplifying the yield farming experience.

What role does BlockSec play in this scenario?

BlockSec acts as a security watchdog, monitoring transactions for anomalies such as the one observed with YO Protocol. It identifies potential threats and advises on corrective measures to safeguard blockchain transactions.

How can slippage protection benefit DeFi transactions?

Slippage protection helps maintain the transaction value close to user expectations by accounting for potential market changes during transaction processes. It is crucial for preventing significant financial discrepancies due to market volatility.

Why should one consider using WEEX for trading?

WEEX offers a trading platform with a focus on enhanced security, informed decision-making, and effective risk management. It provides tools and insights that can be helpful in navigating the complexities of cryptocurrency investments efficiently and safely.

-- Price

On March 16, 2026, in Dallas, Texas, USA, CanGu Company (New York Stock Exchange code: CANG, hereinafter referred to as "CanGu" or the "Company") today announced its unaudited financial performance for the fourth quarter and full year ended December 31, 2025. As a btc-42">bitcoin mining enterprise relying on a globally operated layout and dedicated to building an integrated energy and AI computing power platform, CanGu is actively advancing its business transformation and infrastructure development.

2025 Full Year and Fourth Quarter Financial and Operational Highlights

• Financial Performance:

Total revenue for the full year 2025 was $688.1 million, with $179.5 million in the fourth quarter.

Bitcoin mining business revenue for the full year was $675.5 million, with $172.4 million in the fourth quarter.

Full-year adjusted EBITDA was $24.5 million, while the fourth quarter was -$156.3 million.

• Mining Operations and Costs:

A total of 6,594.6 bitcoins were mined throughout the year, averaging 18.07 bitcoins per day; of which 1,718.3 bitcoins were mined in the fourth quarter, averaging 18.68 bitcoins per day.

The average mining cost for the full year (excluding miner depreciation) was $79,707 per bitcoin, and for the fourth quarter, it was $84,552;

The all-in sustaining costs were $97,272 and $106,251 per bitcoin, respectively.

As of the end of December 2025, the company has cumulatively produced 7,528.4 bitcoins since entering the bitcoin mining business.

• Strategic Progress:

The company has completed the termination of the American Depositary Receipt (ADR) program and transitioned to a direct listing on the NYSE to enhance information transparency and align with its strategic direction, with a long-term goal of expanding its investor base.

CEO Paul Yu stated: "2025 marked the company's first full year as a bitcoin mining enterprise, characterized by rapid execution and structural reshaping. We completed a comprehensive adjustment of our asset system and established a globally distributed mining network. Additionally, the company introduced a new management team, further strengthening our capabilities and competitive advantage in the digital asset and energy infrastructure space. The completion of the NYSE direct listing and USD pricing also signifies our transformation into a global AI infrastructure company."

"As we enter 2026, the company will continue to optimize its balance sheet structure and enhance operational efficiency and cost resilience through adjustments to the miner portfolio. At the same time, we are advancing our strategic transformation into an AI infrastructure provider. Leveraging EcoHash, we will utilize our capabilities in scalable computing power and energy networks to provide cost-effective AI inference solutions. The relevant site transformations and product development are progressing simultaneously, and the company is well-positioned to sustain its execution in the new phase."

The company's Chief Financial Officer, Michael Zhang, stated: "By 2025, the company is expected to achieve significant revenue growth through its scaled mining operations. Despite recording a net loss of $452.8 million from ongoing operations, mainly due to one-time transformation costs and market-driven fair value adjustments, the company, from a financial perspective, will reduce its leverage, optimize its Bitcoin reserve strategy and liquidity management, introduce new capital to strengthen its financial position, and seize investment opportunities in high-potential areas such as AI infrastructure while navigating market volatility."

Fourth Quarter 2025 Ongoing Operations Financial Performance

Revenue

The total revenue for the fourth quarter was $1.795 billion. Of this, the Bitcoin mining business contributed $1.724 billion in revenue, generating 1,718.3 Bitcoins during the quarter. Revenue from the international automobile trading business was $4.8 million.

Operating Costs and Expenses

The total operating costs and expenses for the fourth quarter amounted to $4.56 billion, primarily attributed to expenses related to the Bitcoin mining business, as well as impairment of mining machines and fair value losses on Bitcoin collateral receivables.

This includes:

· Cost of Revenue (excluding depreciation): $1.553 billion

· Cost of Revenue (depreciation): $38.1 million

· Operating Expenses: $9.9 million (including related-party expenses of $1.1 million)

· Mining Machine Impairment Loss: $81.4 million

· Fair Value Loss on Bitcoin Collateral Receivables: $171.4 million

Profit Situation

The operating loss for the fourth quarter was $276.6 million, a significant increase from a loss of $0.7 million in the same period of 2024, primarily due to the downward trend in Bitcoin prices.

The net loss from ongoing operations was $285 million, compared to a net profit of $2.4 million in the same period last year.

The adjusted EBITDA was -$156.3 million, compared to $2.4 million in the same period last year.

Full Year 2025 Ongoing Operations Financial Performance

Revenue

The total revenue for the full year was $6.881 billion. Of this, the revenue from the Bitcoin mining business was $6.755 billion, with a total output of 6,594.6 Bitcoins for the year. Revenue from the international automobile trading business was $9.8 million.

Operating Costs and Expenses

The total annual operating costs and expenses amount to $1.1 billion.

Specifically, they include:

· Revenue Cost (excluding depreciation): $543.3 million

· Revenue Cost (depreciation): $116.6 million

· Operating Expenses: $28.9 million (including related-party expenses of $1.1 million)

· Miner Impairment Loss: $338.3 million

· Bitcoin Collateral Receivable Fair Value Change Loss: $96.5 million

Profitability

The full-year operating loss is $437.1 million. The continuing operations net loss is $452.8 million, while in 2024, there was a net profit of $4.8 million.

The 2025 non-GAAP adjusted net profit is $24.5 million (compared to $5.7 million in 2024). This measure does not include share-based compensation expenses; refer to "Use of Non-GAAP Financial Measures" for details.

Financial Position

As of December 31, 2025, the company's key assets and liabilities are as follows:

· Cash and Cash Equivalents: $41.2 million

· Bitcoin Collateral Receivable (Non-current, related party): $663.0 million

· Miner Net Value: $248.7 million

· Long-Term Debt (related party): $557.6 million

In February 2026, the company sold 4,451 bitcoins and repaid a portion of related-party long-term debt to reduce financial leverage and optimize the asset-liability structure.

Stock Repurchase

As per the stock repurchase plan disclosed on March 13, 2025, as of December 31, 2025, the company had repurchased a total of 890,155 shares of Class A common stock for approximately $1.2 million.

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