According to Foresight News , YAM Finance tweeted that the suspicious transactions were not due to an Inverse contract vulnerability, but rather related to the LlamaLend mechanism. Their explanation states that attackers launched a "donation attack" on LlamaLend targeting sDOLA, pushing the price up from approximately 1.188 sDOLA = 1 DOLA to approximately 1.358 sDOLA = 1 DOLA. This subsequently liquidated almost all user positions using sDOLA as collateral to borrow crvUSD. The reason why the increased collateral value triggered liquidation is not yet fully understood; normally, users should be moved away from the liquidation line rather than closer to it. It's worth noting that the "secondary effect" of this price anomaly is still ongoing, resulting in an approximately 14% increase in paper profits for users who did not leverage on LlamaLend and only held sDOLA. Furthermore, DOLA is currently trading at approximately a 1% discount to its peg on the secondary market, and some community members have suggested that borrowers consider repaying their DOLA debt during this discount period.
According to a previous report by Foresight News , BlockSec detected that the DeFi lending protocol Inverse Finance was suspected of being attacked, resulting in a loss of approximately $240,000. This incident may be related to price manipulation by DOLA, leading to the liquidation of multiple users. BlockSec has contacted the relevant team regarding this matter.
