YAM Finance has clarified that the recent attack on Inverse Finance, which resulted in a $240,000 loss, was not due to a contract vulnerability but was linked to the LlamaLend mechanism. The attackers executed a "donation attack" on LlamaLend, manipulating the sDOLA price and liquidating user positions to borrow crvUSD. The exact reason for the liquidation trigger remains unclear, as the increase in collateral value should typically prevent such events.
The incident has led to a 14% increase in paper profits for users holding sDOLA without leveraging their positions. Meanwhile, DOLA is trading at a 1% discount on the secondary market, prompting some community members to suggest repaying DOLA debt during this period.
YAM Finance Clarifies Inverse Attack Originating from LlamaLend
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