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
馃 Curve Launches LlamaLend V2 on Optimism with OP Rewards
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.
鈿狅笍 Curve LPs: Remove Fantom Opera Liquidity Before June 30 Shutdown
**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.**
鈿狅笍 Urgent: Exit asdCRV LlamaLend Market on Arbitrum Due to Oracle Risk
**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.
Frax Pioneers On-Chain Foreign Exchange with FX Pools
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.