Curve Finance Reports Weekly Yield Metrics and Key Performance Indicators

A community proposal has successfully passed and been executed, marking a significant milestone for the DAO. **Key Points:** - The proposal received sufficient support from voters - Execution has been completed - Implementation work now begins The DAO expressed gratitude to all participants who voted on the proposal. This follows a pattern of successful governance, with previous proposals also achieving quorum and majority support before execution. The community now shifts focus to implementing the approved changes.

**Curve has temporarily paused its LayerZero infrastructure** following a security incident involving rsETH's LayerZero setup. The pause is a precautionary measure while the root cause is investigated. **Affected services:** - CRV token bridging from BNB Chain, Sonic, Avalanche, Fantom, Etherlink, and Kava (native bridges on other chains remain operational) - crvUSD fast bridge (L2 slow bridging continues to function) The decision reflects a cautious approach to cross-chain security. Users needing to bridge CRV or crvUSD should use alternative routes or wait for the infrastructure to resume once the investigation concludes.

**Attack Details and Impact** LlamaRisk published a postmortem analyzing the sDOLA market liquidations on LlamaLend. The exploit resulted in: - **$822,000 in borrower losses** through forced liquidations - **~$200,000 profit** for the attacker - Lenders remained unaffected **Root Cause** The attack exploited a combination of factors: - Price oracle vulnerability to donation attacks - Limited sDOLA liquidity outside the collateral market - Specific handling requirements for vault collaterals in LlamaLend **Potential Compensation** Curve DAO is considering compensating affected borrowers for the $822k loss, pending community discussion and governance vote. **Security Learnings** The incident provided critical insights before LlamaLend V2's release. Developers noted the attacker likely would have earned more through a responsible security disclosure than the exploit itself. The team is now incorporating oracle code from unreleased 2-way markets as mitigation for future vault collateral markets.

Frax is launching one of the first on-chain foreign exchange pools in partnership with KrwqCash, marking a significant step toward bringing traditional FX markets onto blockchain infrastructure. **Key Developments:** - Frax and KrwqCash are piloting FX pools to enable decentralized currency trading - frxUSD will play a central role in these emerging on-chain FX markets - Incentives are planned for the Curve Finance pool with KrwqCash This initiative represents an expansion of DeFi beyond crypto-native assets into traditional financial markets, potentially offering 24/7 trading and transparent pricing for foreign exchange.