YAM Finance responds to Inverse attack: Suspicious transactions originated from LlamaLend, not a contract vulnerability.
PANews reported on March 2nd that YAM Finance responded to BlockSec's monitoring of a suspected attack on Inverse Finance, resulting in a loss of approximately $240,000. YAM Finance stated on its X platform that the incident was not due to a vulnerability in the Inverse contract, but rather related to the LlamaLend mechanism. According to their explanation, the attackers launched a "donation attack" on LlamaLend targeting sDOLA, pushing the price from approximately 1.188 sDOLA = 1 DOLA to approximately 1.358 sDOLA = 1 DOLA. Subsequently, they liquidated almost all user positions using sDOLA as collateral to borrow crvUSD. The reason why the increase in 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 is 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 their LlamaLend positions and only held sDOLA. In addition, DOLA is currently trading at a discount of about 1% to its anchor value on the secondary market, and some community members have suggested that borrowers may consider repaying their DOLA debt during this discount period.
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