Curve Finance Weekly Yields and Key Metrics Report

Curve Finance has launched **LlamaLend V2** on Optimism, introducing a new lending framework built around Curve liquidity. **Key Features:** - Use Curve LP tokens as collateral - Isolated market risk management - Improved range-based liquidations powered by LLAMMA - Enhanced market security **Incentives:** OP rewards are available for eligible positions, distributed through [Merkl](https://merkl.xyz). Users can now borrow, lend, or loop through isolated markets on [Curve's Optimism markets](https://www.curve.finance/llamalend/optimism/markets?version=v2). This launch represents Curve's continued expansion as a stablecoin infrastructure provider, now offering lending services alongside its established liquidity pools.

**Urgent Action Required for Liquidity Providers** Curve pools on Fantom Opera still hold significant Total Value Locked (TVL), but time is running out. The Fantom Opera network is shutting down on **June 30, 2026 at 5:00 PM GMT**. **What You Need to Do:** - Check if you have liquidity in Curve pools on Fantom Opera - Remove all funds before the June 30 deadline - Failure to withdraw will result in **permanent loss of access** to your funds **Additional Context:** Fantom is migrating to Sonic Labs, and the original Opera network will be deprecated. This affects multiple DeFi protocols including Stargate V1. For more details on the migration: [Sonic Labs announcement](https://blog.soniclabs.com/sonics-successful-network-migration-what-this-means-for-fantom-opera/) **Act now to secure your assets.**

**Critical Alert for Arbitrum Users** Users with deposits or loans in the asdCRV LlamaLend market on Arbitrum are urged to exit immediately as a precautionary measure. **Key Points:** - The market is currently stable, but faces potential instability - Price oracle may become unreliable due to the vsdCRV exploit - Unstable oracle could trigger unexpected liquidations - Action recommended: withdraw deposits and close loans ASAP **Background Context:** This warning follows previous stress tests of LlamaLend markets. While Ethereum-based systems performed well with no bad debt, Arbitrum markets showed vulnerability due to insufficient cross-chain arbitrage activity. The current vsdCRV exploit creates additional risk specifically for the asdCRV market's price oracle mechanism, making immediate exit the safest option until the situation stabilizes.

**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.