BarnBridge's SMART Yield protocol on Ethereum has suffered a governance attack, resulting in losses of approximately $776,000. According to BlockSec Phalcon monitoring, the attacker gained DAO governance permissions and upgraded the SmartYield/controller proxy to a malicious contract. This allowed the attacker to exploit the CompoundProvider's _takeUnderlying function, leveraging pre-existing USDC approvals from 50 user accounts to transfer the aggregated funds via transferFees to their own account.