YAM Finance responds to Inverse attack: suspicious transactions originated from LlamaLend, not from contract vulnerabilities
PANews reported on March 2 that in response to BlockSec's monitoring of Inverse Finance, which allegedly suffered a loss of approximately $240,000 due to an attack, YAM Finance responded on the X platform stating that this incident was not due to a vulnerability in the Inverse contract, but was instead related to the LlamaLend mechanism. According to their explanation, the attacker launched a "donation attack" on sDOLA on LlamaLend, pushing the price from about 1.188 sDOLA = 1 DOLA to about 1.358 sDOLA = 1 DOLA, and subsequently liquidated almost all user positions that had borrowed crvUSD using sDOLA as collateral. It is still unclear why the increase in collateral value triggered liquidation, as logically it should move users further from the liquidation threshold, not closer. Notably, the "secondary effects" of this price anomaly are still ongoing, so users who only hold sDOLA without leveraging on LlamaLend have seen their notional returns increase by about 14%. In addition, DOLA is currently trading at about a 1% discount to its peg on the secondary market, and some community members suggest that borrowers may consider repaying their DOLA debt during this discount period.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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