Frax Pioneers On-Chain Foreign Exchange with FX Pools

Curve Finance has published its weekly performance metrics and best yields for Week 12 of 2026. The report provides updated data on: - Current yield opportunities across Curve's liquidity pools - Key performance metrics for the protocol - Comparative analysis of pool performance This continues Curve's regular practice of transparent weekly reporting, following similar updates from previous weeks. The data helps liquidity providers make informed decisions about where to deploy capital within the protocol's ecosystem. [View full report](https://news.curve.finance/curve-best-yields-key-metrics-week-12-2026/)

Curve Finance has implemented improvements to strengthen its multichain infrastructure, focusing on three key outcomes: - **Faster cross-chain arbitrage** enabling more efficient trading across networks - **Tighter crvUSD pricing** maintaining better price consistency across different chains - **Healthier Llamalend markets** with stronger liquidity distribution These enhancements build on lessons learned from previous market stress tests, where arbitrage proved critical for system stability. During past volatility events, Ethereum systems performed well with no bad debt, but some chains experienced minor under-collateralization due to insufficient cross-chain arbitrage activity. The improvements aim to create more robust multichain liquidity and better market efficiency across Curve's ecosystem.

**FastBridge** now enables crvUSD transfers from Layer 2 networks back to Ethereum in approximately **15 minutes**, eliminating the traditional 7-day withdrawal delay. **How it works:** - Combines native L2 bridges with LayerZero cross-chain messaging - Initiates standard L2 → Ethereum withdrawal - LayerZero message confirms the transfer on Ethereum - Vault releases crvUSD early while canonical bridge settles in background **Supported networks:** - Arbitrum - Optimism - Fraxtal (Frax Finance) More details: [Curve Finance announcement](https://news.curve.finance/fastbridge-bringing-fast-l2-withdrawals-to-crvusd/)

**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.