Ethereum Yield ETHY Goes Offline

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Ethereum Yield Logo/Website

Ethereum Yield proposed a new yield farming smart contract where users could deposit ethereum to earn a yield. As part of the project, significant taxes applied to withdrawals from the smart contract, meaning that users could not withdraw without facing that penalty. The project was heavily promoted by influencers including BitBoy. Within a couple of months, the Telegram group associated with the project had disappeared and updates had stopped being posted to the project's Twitter account. The website eventually disappeared close to a year later.

This is a global/international case not involving a specific country.[1][2][3][4][5][6][7][8][9][10][11][12][13][14][15][16][17][18][19][20][21][22][23][24][25][26][27][28][29][30]

About Ethereum Yield

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"Welcome to the Ethereum Yield Project." "Powerful and expanding deflationary yield farming platform. ETHY is Ethereum's most powerful yield farming coin. ETHY's vault smart-contract executes strategies to maximize APY, reward holders, and Punish weak-hands."

"To farm, deposit Uniswap Liquidity Provider tokens, and receive pool shares. Those shares are locked for 1-4 months, then they can be liquidated back into Uniswap LP tokens. During this time you will recieve a percentage of the transfer fees on top of Uniswap rewards."

"Users are incentivised to stake Uniswap liquidity provider tokens. Fees from these tokens are farmed. A percentage of these fees goes toward the autonomous strategies like liquidating LP tokens, and performing an (`ETH-ETHY`) buy back (increasing the price). Any purchased ETHY tokens will be distributed to stakers/farmers"

"ETHY implements a strong deflationary force on each token. Every time an ETHY token is transferred, a small fee is taken, which is returned to the farmers. This mechanism incentivises holding and farming."

"ETHY holders will be able to vote on proposals– so long as they have staked liquidity in the pools. The community will decide everything from developer fees and site design to the exact farming options available."

"Featured in a Bitboy video, bringing many new faces to the projects... welcome!"

"The development team behind Ethereum Yield has remained largely anonymous, although one developer publicly identified himself as Liao Fu during an "ask me anything" session. During the Q&A, Fu stated that the team will be working with majority ETHY holders to jointly govern the project."

"Fees generated by the deposited LP tokens on uniswap will periodically be withdrawn by the contract; ETH and ETHY will be returned; The ETH will be used to buy ETHY from uniswap, increasing the price, which is great for all holders. All surplus ETHY will be redistributed to the farmers and small admin fee will be taken. This pumping strategy may be updated over time to an even more aggressive protocol."

"You can now stake ETHY - for up to 290+% fixed ETHY returns. Please note you can only have one active stake per account. Once you commit for stake period there is no early unstaking."

"In December 2020, Ethereum Yield announced that it would be launching Ethereum Stake (ETHS), which will enable more advanced staking such as Ethereum 2.0 validator staking. It has also unveiled a custom aggregator and that it will be adding a Dai (DAI) farming pool."

"Our transition from a yield farming project to a comprehensive crypto trading blog was driven by our commitment to empowering and educating our readers. We recognized the need for a reliable, user-friendly, and engaging platform that could help both beginners and experienced traders navigate the ever-evolving crypto market. Thus, the Ethereum Yield Project was reborn as a blog about crypto trading."

This is a global/international case not involving a specific country.

The background of the exchange platform, service, or individuals involved, as it would have been seen or understood at the time of the events.

Include:

  • Known history of when and how the service was started.
  • What problems does the company or service claim to solve?
  • What marketing materials were used by the firm or business?
  • Audits performed, and excerpts that may have been included.
  • Business registration documents shown (fake or legitimate).
  • How were people recruited to participate?
  • Public warnings and announcements prior to the event.

Don't Include:

  • Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
  • Anything that wasn't reasonably knowable at the time of the event.

There could be more than one section here. If the same platform is involved with multiple incidents, then it can be linked to a main article page.

The Reality

This sections is included if a case involved deception or information that was unknown at the time. Examples include:

  • When the service was actually started (if different than the "official story").
  • Who actually ran a service and their own personal history.
  • How the service was structured behind the scenes. (For example, there was no "trading bot".)
  • Details of what audits reported and how vulnerabilities were missed during auditing.

What Happened

The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.

Key Event Timeline - Ethereum Yield ETHY Goes Offline
Date Event Description
November 17th, 2020 12:22:29 PM MST CertiK Audit Online CertiK publishes an audit on their website.
November 19th, 2020 Windows 95/98 UI The website is updated with an interface designed to look like Windows 95/98.
November 23rd, 2020 5:44:00 PM MST Staking Opened Up A staking option is launched. Users are warned that there is one stake per account and no early unstaking.
December 2nd, 2020 5:30:55 AM MST Telegram Online The Telegram channel is captured as online with 4,477 members, of whom 957 are apparently online.
December 5th, 2020 BitBoy Promotion The ETHY project is promoted by BitBoy in a video.
January 4th, 2021 10:44:00 AM MST Final Post Of Project The project posts a final post about a new website interface upgrade on Twitter.
January 13th, 2021 3:13:00 PM MST Unable To Withdraw A user reports being unable to withdraw even after increasing their slippage, which is attributed to a lack of liquidity.
January 19th, 2021 2:40:00 PM MST Withdrawals Working After complaining about a rug pull, a user increases their slippage to 10% and is able to withdraw their funds.
January 27th, 2021 7:19:13 PM MST Telegram Offline The Telegram channel appears to be offline at the moment.
February 13th, 2021 9:21:45 PM MST Presale On Website Capture of a presale on the website instead of Windows 95/98 UI.
February 28th, 2021 12:52:00 PM MST Scam Accusations Specific mentions of the project being a scam.
March 7th, 2021 2:25:15 PM MST Windows 95/98 UI The website is back to the Windows 95/98 interface.
March 9th, 2021 3:25:00 PM MST Staking ETH 2.0 A user reports that the purpose of the protocol is to allow staking in the ETH 2.0 contract, so no withdrawals are possible.
April 2nd, 2021 12:42:00 PM MDT Withdrawal Via Contract A user reports being able to withdraw funds via interacting with the smart contract, after the withdrawal tab is missing.
October 7th, 2022 2:29:55 AM MDT Website Captured Online The website is captured online for the last time.
November 26th, 2022 11:45:39 AM MST NameCheap Registration The domain displays a NameCheap registration page.
April 5th, 2023 2:35:34 AM MDT Domain Suspended The domain is reportedly suspended. Contact hosting provider.
May 5th, 2023 2:36:21 AM MDT New Content Blog A new website is up with content related to cryptocurrency and farming. It is unclear if the project team is related as the about page mentions a "transition from a yield farming project to a comprehensive crypto trading blog".

Technical Details

This section includes specific detailed technical analysis of any security breaches which happened. What specific software vulnerabilities contributed to the problem and how were they exploited?

Total Amount Lost

The total amount lost is unknown.

How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?

Immediate Reactions

How did the various parties involved (firm, platform, management, and/or affected individual(s)) deal with the events? Were services shut down? Were announcements made? Were groups formed?

Ultimate Outcome

What was the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?

Total Amount Recovered

The total amount recovered is unknown.

What funds were recovered? What funds were reimbursed for those affected users?

Ongoing Developments

What parts of this case are still remaining to be concluded?

Individual Prevention Policies

No specific policies for individual prevention have yet been identified in this case.

For the full list of how to protect your funds as an individual, check our Prevention Policies for Individuals guide.

Platform Prevention Policies

Policies for platforms to take to prevent this situation have not yet been selected in this case.

For the full list of how to protect your funds as a financial service, check our Prevention Policies for Platforms guide.

Regulatory Prevention Policies

No specific regulatory policies have yet been identified in this case.

For the full list of regulatory policies that can prevent loss, check our Prevention Policies for Regulators guide.

References

  1. ↑ https://old.reddit.com/r/CryptoCurrency/comments/ryzs07/bitboy_has_been_involved_in_7_crypto_scams_in_the/hru74j9/ (Sep 20, 2022)
  2. ↑ https://old.reddit.com/r/CryptoCurrency/comments/ryzs07/bitboy_has_been_involved_in_7_crypto_scams_in_the/ (Apr 5, 2023)
  3. ↑ Ethereum Yield | ETHY (Apr 30, 2024)
  4. ↑ Ethereum Yield || Presale (Apr 30, 2024)
  5. ↑ Ethereum Yield | ETHY (Apr 30, 2024)
  6. ↑ Ethereum Yield | ETHY (Apr 30, 2024)
  7. ↑ ethereumyield.farm (Apr 30, 2024)
  8. ↑ https://web.archive.org/web/20230405083534/https://ethereumyield.farm/ (Apr 30, 2024)
  9. ↑ Ethereum Yield - (Apr 30, 2024)
  10. ↑ About Us - Ethereum Yield (Apr 30, 2024)
  11. ↑ @EthereumYield Twitter (Apr 30, 2024)
  12. ↑ Ethy Where Months of Work Takes Only A Week (Apr 30, 2024)
  13. ↑ @EthereumYield Twitter (Apr 30, 2024)
  14. ↑ @tokenoncrypto Twitter (Apr 30, 2024)
  15. ↑ @HeyJonBray Twitter (Apr 30, 2024)
  16. ↑ @Arturbo1987 Twitter (Apr 30, 2024)
  17. ↑ @imran_hodl Twitter (Apr 30, 2024)
  18. ↑ @kayvainVoss Twitter (Apr 30, 2024)
  19. ↑ Is Ethereum Yield a scam? Or is Ethereum Yield legit?' (Apr 30, 2024)
  20. ↑ Ethereum Yield – Medium (Apr 30, 2024)
  21. ↑ Telegram: Contact @ethereumyield (Apr 30, 2024)
  22. ↑ Telegram: Contact @ethereumyield (Apr 30, 2024)
  23. ↑ Ethereum Yield price today, ETHY to USD live price, marketcap and chart | CoinMarketCap (Apr 30, 2024)
  24. ↑ Ethereum Yield X Satoshiclub Ama From 19 November (Apr 30, 2024)
  25. ↑ CertiK Foundation - Provable Trust For All (Apr 30, 2024)
  26. ↑ CertiK Secured Projects (Apr 30, 2024)
  27. ↑ https://old.reddit.com/r/CryptoMoonShots/comments/kpd3qa/return_to_the_original_rfi_not_going_below_1_again/ (Apr 30, 2024)
  28. ↑ @EthereumYield Twitter (Apr 30, 2024)
  29. ↑ https://old.reddit.com/r/CryptoCurrency/comments/wxl146/bitboy_had_admitted_to_promoting_rugpulls_and/ (Apr 30, 2024)
  30. ↑ https://old.reddit.com/r/UniSwap/comments/kbsdj2/i_cannot_swap_ethys_tokens_for_eth_please_check/ (Apr 30, 2024)
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