Curve Finance: Investigation into the sDOLA LlamaLend attack has begun; the attacker’s gains were limited
Svmuu News: In response to the suspected attack on Inverse Finance, which resulted in a loss of approximately $240,000, Curve Finance announced on X that it has launched an investigation into the sDOLA LlamaLend attack. Preliminary findings indicate that the attack was caused by the price oracle mechanism used by sDOLA (which may have been affected by a “donation attack”) and the lack of sDOLA held as collateral in the market. Although the attacker’s gains were relatively limited, the incident highlights the need for stricter protocols when using vault collateral in LlamaLend. The primary impact was the liquidation of users who borrowed using sDOLA as collateral; lenders were not affected. The Curve team is currently investigating whether other similar markets may be vulnerable in the future and is working to ensure that LlamaLend V2 remains secure even when dealing with vault collateral assets susceptible to "donation attacks," regardless of market size, and can effectively mitigate such attacks. Detailed evaluations of relevant solutions are currently underway, with plans to integrate these mechanisms into all markets utilizing vault-based collateral in the future.
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