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- The flash-loan exploit manipulated sDOLA balances, causing $240K in losses across 27 positions.
- Inverse Finance denies a protocol breach, stating the incident originated within LlamaLend.
- Past DOLA-related exploits heighten concerns as users await a full technical explanation.
A suspicious transaction struck the DOLA ecosystem and caused about $240,000 in losses. Security firm BlockSec Phalcon reported that the attack targeted a contract linked to Inverse Finance on Ethereum. The firm published the alert on X and warned users of potential ongoing risk.
BlockSec said the attacker manipulated the DOLA price. This forced several users into liquidation. The team contacted Inverse Finance but did not receive an immediate reply. Full technical details remain unclear, and analysts are still reviewing the affected contracts.
Flash-Loan Exploit Triggers DOLA Liquidations
CertiK Alert confirmed the event as a flash-loan-driven exploit. The attacker used about $30 million in borrowed liquidity to shift sDOLA balances. This move liquidated 27 positions and produced around $240,000 in profit for the exploiter.
Security analysts have noted that there are significant effects in terms of price stability, especially in the presence of lending and borrowing in combination with liquidity changes. DOLA and FiRM, managed by Inverse Finance, are still under scrutiny, awaiting the official explanation of what occurred.
There was no announcement from Inverse Finance regarding the explanation of the mechanisms of the manipulation of the protocols. Because of this, there has been a certain level of uncertainty among users affected by the situation.
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Historical exploits involving DOLA continue to influence community concerns. In April 2022, Frontier, previously known as Anchor, faced a loss of $15.6 million. A hacker exploited the price oracle of $INV, after which he borrowed various assets, including ETH, WBTC, YFI, and DOLA.
Inverse Finance Denies Direct Exploit Impact
Another attack followed in June 2022. Chainlink’s manipulated data is used to enable flash loans to attack yvcrv3crypto positions. These attacks resulted in losses of around $5.83 million.
Inverse Finance denies the attack on its systems. Nour Haridy, the founder of Inverse Finance, wrote on X, “Inverse Finance was NOT affected.” He added that the attack is on another protocol that uses DOLA.
Analyst YAM denies the attack on Inverse Finance. He explained that the attack is actually on LlamaLend. He added that a “donation attack” impacted the value of sDOLA. It resulted in widespread liquidations.
The investigation into the attack continues. Users are trying to determine the exposure. Security teams are keeping a close eye on the situation. More information will be revealed after the completion of the technical report.
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