Yearn Finance, a prominent DeFi protocol, encountered liquidity pool anomalies at the start of December, leading to short-term asset mismatches and abnormal withdrawals. This incident caused imbalanced capital ratios and raised concerns about systemic risks due to Yearn's central role in various yield strategies and stablecoin pools. The anomalies resulted in temporary liquidity contraction in some strategy pools, increased transaction slippage, and heightened risk-averse sentiment. Major cryptocurrencies like Bitcoin, Ethereum, and XRP experienced synchronized declines, underscoring the market's sensitivity to DeFi risks. The event highlights the interconnectedness of DeFi systems, where disruptions at key nodes can amplify market sentiment and liquidity issues.