Curve Finance: An investigation has been launched into the sDOLA LlamaLend attack; attackers' gains were limited.

In response to the suspected attack on Inverse Finance resulting in a loss of approximately $240,000, Curve Finance announced on its X platform that it has launched an investigation into the sDOLA LlamaLend attack. Preliminary findings indicate that the attack was related to the price oracle mechanism used by sDOLA (potentially influenced by a "donation attack") and the amount of sDOLA not being used as collateral in the market. While the attacker's gains were relatively limited, the incident highlights the need for stricter handling of vault collateral in LlamaLend. The primary impact was the liquidation of users who borrowed using sDOLA as collateral; lenders were unaffected. The Curve team is currently investigating whether other similar markets may be affected in the future and ensuring that LlamaLend V2 remains secure even in the face of vault collateral vulnerable to donation attacks, across different market sizes. This could effectively mitigate similar attacks. A detailed evaluation of related solutions is underway, with plans to integrate relevant mechanisms into all markets using vault collateral in the future.