Curve Finance Investigates sDOLA LlamaLend Attack; Attacker Gains Limited Access

Odaily Planet Daily reports: In response to the suspected attack on Inverse Finance, which resulted in approximately $240,000 in losses, Curve Finance has announced on X that it has initiated an investigation into the sDOLA LlamaLend attack. Preliminary findings suggest the attack was caused by the price oracle mechanism used by sDOLA (potentially affected by “donation attacks”) and the presence of sDOLA amounts in the market that were not eligible as collateral. Although the attacker’s gains were relatively limited, the incident highlights the need for stricter handling of vault-type assets as collateral in LlamaLend—primarily affecting users who borrowed against sDOLA as collateral, while lenders remained unaffected. The Curve team is currently conducting further analysis to identify whether other similar markets may be vulnerable in the future, and is ensuring that LlamaLend V2 can maintain security even when exposed to vault collateral susceptible to donation attacks and across varying market scales, potentially mitigating similar attacks. A detailed evaluation of relevant solutions is underway, with plans to integrate these mechanisms into all future markets utilizing vault-based collateral.