Curve Finance: Investigation Launched into sDOLA LlamaLend Attack, Attacker Gains Limited

Odaily News: In response to Inverse Finance reportedly suffering an attack resulting in approximately $240,000 in losses, Curve Finance announced on platform X that it has initiated an investigation into the sDOLA LlamaLend attack. Preliminary findings indicate the cause is related to the price oracle mechanism used by sDOLA (potentially affected by a "donation attack") and the amount of sDOLA not held as collateral in that market. Although the attacker's gains were relatively limited, the incident highlights the need for stricter handling when using vault-type assets (vault collateral) as collateral in LlamaLend. The primary impact was the liquidation of users who borrowed using sDOLA as collateral, while lenders were unaffected. The Curve team is currently further investigating whether other similar markets might be affected in the future and ensuring that LlamaLend V2 can maintain security even when facing vault-type collateral assets "vulnerable to donation attacks" and across different market scales, potentially effectively mitigating similar attacks. A detailed assessment of related solutions is underway, with plans to integrate relevant mechanisms into all future markets employing vault collateral.