ChainCatcher report: The DeFi lending protocol dTRINITY disclosed on X that its dLEND deployment on Ethereum suffered a first-deposit inflation attack, depleting all dUSD funds in the lending supply and resulting in approximately $257,000 in bad debt. The protocol has been temporarily paused, and the team is actively developing remediation measures, pledging to fully cover losses using internal funds. Repayment of bad debt will begin within 24 hours of this announcement, followed by the resumption of dLEND. Deployments of dTRINITY on Fraxtal and Katana remain unaffected, and user funds are secure. All protocol deployments maintain chain-isolated reserves, collateral, and lending deposits.
dTRINITY: dLEND on Ethereum Hit by Deposit Inflation Attack, Resulting in $257,000 in Bad Debt
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Summary
The DeFi lending protocol dTRINITY reported on X that dLEND on Ethereum suffered a first-deposit inflation attack, draining dUSD from the lending pool and generating approximately $257,000 in bad debt. The protocol is now paused while the team develops fixes and has pledged to cover losses using internal funds. Repayment of bad debt will begin within 24 hours, followed by the resumption of dLEND operations. On-chain data indicates that deployments on Fraxtal and Katana remain unaffected, with user funds secure. Chain-isolated reserves and collateral are maintained across all protocol deployments. The inflation event underscores the ongoing risks inherent in DeFi lending systems.
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