LlamaRisk Releases sDOLA Attack Postmortem: $822k Borrower Losses, Curve DAO May Compensate
LlamaRisk Releases sDOLA Attack Postmortem: $822k Borrower Losses, Curve DAO May Compensate
馃捀 LlamaLend exploit aftermath
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.
A postmortem on sDOLA market liquidations by @LlamaRisk. Necessary learnings for safety of future markets have been made. The loss for the borrowers ($822k) is very feasible to compensate by Curve DAO if it approves, but is subject to discussions and a vote. The attacker profit
On March 2, 2026, an exploit on the sDOLA-long2 LlamaLend market hard-liquidated 27 active borrowers (~$10.9M total debt). The post-mortem linked below explains what made the exploit possible, the impact to users, and how to prevent such incidents in the future. 馃憞
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