llamalend

Curve Finance announced that its lending product LlamaLend V2 has officially launched on the Ethereum Layer 2 network Optimism. Users can engage in borrowing, lending, or circular leverage operations in the isolated market based on the Curve LLAMMA mechanism. It is reported that this upgrade will open a new market and distribute OP rewards to eligible users through Merkl.

According to The Block, Curve Finance has launched the lending protocol Llamalend v2 on Optimism as the first phase of its major upgrade, with plans to deploy it to the Ethereum mainnet in the second half of this year.Llamalend v2 removes the restriction of only supporting crvUSD, allowing for almost any collateral to be combined with lending assets, and introduces LlamaRisk as the market auditor responsible for evaluating new collateral and managing the market lifecycle.Users can use Curve LP tokens as collateral, allowing them to lend funds while maintaining market-making exposure, thereby improving capital efficiency. The launch on Optimism received a subsidy of 250,000 OP (approximately $50,000) provided by the Optimism Foundation, which will be used for liquidity and activity incentives over the next two months. Initially, the lending limit will be zero, only allowing for lending, and the lending limit will be determined through a seven-day DAO vote, with full functionality expected to gradually open from June 16.

The Curve team has published a proposal on the governance forum, addressing approximately $700,000 in bad debt generated by the CRV-long LlamaLend market, proposing a recovery mechanism based on the free market.This mechanism utilizes the option characteristics of the CRV-long treasury assets: when the price of CRV rises, the value of the treasury assets increases, and when the price falls, it does not further depreciate. The proposal suggests establishing a Curve stable pool with a low amplification coefficient (A=2) and a high redemption fee (1%), concentrating the liquidity of the treasury tokens around a repayment capability level of approximately 71%. Arbitrageurs can profit by purchasing treasury tokens through flash loans and conducting partial liquidations.Curve DAO has been invited to approve incentive measures for this pool, and the management fees collected will be retained in the treasury in the form of treasury tokens. If this mechanism is successful, it will serve as a reference solution for similar situations.

sDOLA LlamaLend suffered a flash loan price manipulation attack, resulting in a loss of approximately $240,000, including 6.74 WETH and 227,325 DOLA.The attacker manipulated the sDOLA price through flash loans and donations, increasing the exchange rate of 1 sDOLA from 1.189 DOLA to 1.353 DOLA. This price fluctuation caused multiple accounts in the crvUSD Controller to have health factors below 0, triggering liquidation conditions. After the attack contract acted as a liquidator and received rewards, it exchanged the funds, repaid the flash loan, and made a profit.

Curve Finance posted on platform X that it is investigating an attack on the sDOLA LlamaLend market. Preliminary investigations indicate that the attack exploited a combination vulnerability between the price oracle characteristics used by sDOLA and the amount of sDOLA existing outside of collateral in the market. The attacker profited relatively little, but this incident highlights the importance of handling treasury collateral in a specific manner within LlamaLend.Borrowers using sDOLA as collateral were liquidated, while lenders were unaffected, and sDOLA holders received some returns. The team is further investigating whether other similar existing markets may be impacted and ensuring that LlamaLend V2 remains secure even when facing "donation attack" vulnerabilities in treasury collateral across all market scales.In previous news, YAM Finance responded to the attack on Inverse: suspicious transactions originated from LlamaLend, rather than a contract vulnerability.

Regarding the suspected attack on Inverse Finance resulting in a loss of approximately $240,000, Curve Finance announced on platform X that it has initiated an investigation into the sDOLA LlamaLend attack. Preliminary findings indicate that the cause of this attack is related to the price oracle mechanism used by sDOLA (or influenced by "donation attacks") and the amount of sDOLA that exists in the market without being used as collateral.Although the attacker’s profits were relatively limited, the incident highlights the need for stricter handling when using vault collateral as collateral in LlamaLend. The main impact is that users who borrowed against sDOLA as collateral were liquidated, while unaffected lenders remained unharmed. The Curve team is currently further investigating whether there are other similar markets that may be affected in the future and ensuring that LlamaLend V2 can maintain security even when facing vault collateral assets that are "susceptible to donation attacks" and across different market scales. They are conducting a detailed assessment of related solutions and plan to integrate relevant mechanisms in all future markets that use vault collateral.

According to BlockSec monitoring, Inverse Finance is suspected of suffering a loss of approximately $240,000 due to an attack. YAM Finance responded in a post on platform X, stating that this incident is not a vulnerability in the Inverse contract, but rather related to the LlamaLend mechanism.According to their explanation, the attacker initiated a "donation attack" on sDOLA on LlamaLend, driving the price from about 1.188 sDOLA = 1 DOLA up to about 1.358 sDOLA = 1 DOLA, and subsequently liquidated almost all user positions that had crvUSD borrowed against sDOLA as collateral. It is still unclear why the increase in collateral value triggered liquidations, as it should logically keep users away from the liquidation line rather than bring them closer.It is worth noting that the "secondary effects" of this price anomaly are still ongoing. As a result, users who did not engage in leveraged operations on LlamaLend and only held sDOLA have seen their paper profits increase by about 14%. Additionally, DOLA is currently trading at about a 1% discount in the secondary market compared to its pegged value, and some community members suggest that borrowing users consider repaying their DOLA debts during this discount phase.

Curve Finance is seeking community feedback on governance proposal #1252, which proposes to introduce "Emergency DAO" multi-signature permissions for crvUSD and LlamaLend, in order to ensure system security before supporting yieldbasis and Resupply and further scaling.The voting for this proposal will end on November 12. The proposal aims to allow the Emergency DAO to share control over key risk parameters with the Curve DAO, including: lowering the debt ceiling related to crvUSD minting (applicable to YB, Flashminter, etc.); adjusting AMM fees, monetary policy, and liquidity mining callbacks; managing borrowing discounts (non-mandatory liquidation); setting deposit limits for the Vault.

ChainCatcher news, blockchain auditing and security company Statemind has released the audit report for the Curve Finance lending platform LlamaLend, identifying and successfully fixing 1 Critical, 1 High, and 4 Medium vulnerabilities.Curve stated that the audit was completed before the launch of LlamaLend.

ChainCatcher news, the Curve community has initiated a new proposal to create a LlamaLend market for the Ethena stablecoin sUSDe, supporting 20x leverage for staking USDe.Additionally, it is proposed to create a custom oracle for sUSDe, combining three Curve pools to obtain price information for sUSDe.

ChainCatcher news, Curve Finance announced on social media that Curve Lend (also known as LlamaLend) is now live.It is reported that on this lending platform, users can list any asset on their own without permission, but the specific collateralization ratio parameters and soft liquidation losses for each asset will vary based on a set of algorithms.

ChainCatcher news, Curve Finance disclosed more details about its one-way lending market Llamalend based on crvUSD on social media platforms. In this lending platform, users can self-list any asset without permission, but the collateral ratio parameters and soft liquidation losses for each asset will vary based on a set of algorithms. Curve Finance provided example calculations of parameters for some assets based on this algorithm, with a maximum loan-to-value ratio (LTV) of 83% for CRV-type assets, and some euro stablecoins can reach an LTV of 96.5%.

ChainCatcher news, Curve Finance recently stated on the X platform that the one-way lending market based on crvUSD is ready and awaiting contract audit. The two-way lending market (where collateral can be borrowed) is also basically ready, with contract writing completed and testing underway. Today, Curve Finance released an update based on the above announcement, stating that there are only a few days left until Llamalend launches, and once the auditor agrees, the product testing will be deployed ahead of the UI.According to the GitHub document released by Curve founder Michael Egorov, the Curve stablecoin crvUSD uses LL AMM a for soft liquidation (code in AMM.vy). However, this AMM allows for any token pair. This code creates a lending market to borrow crvUSD with any token, or to borrow any token with crvUSD in isolation mode. First, a "simple" non-recollateralized market will be created, followed by cross-market, where the provided collateral is borrowed to serve as lending liquidity while earning some annual interest rate.

ChainCatcher news, the anonymous founder of the DeFi data website DeFiLlama, 0xngmi, announced the official launch of the NFT lending protocol LlamaLend, which allows borrowers to collateralize NFTs and obtain instant loans in ETH at a fixed interest rate.Lenders can choose any NFT collection as their accepted collateral, create a liquidity pool, and select the LTV, maximum loan term, and interest rate. Borrowers can choose the loan duration and borrow ETH equivalent to the lowest floor price of the NFT over the past 7 days. To retrieve the NFT, they must repay the ETH before the due date. If the borrower fails to repay the loan on time, the lender can claim the NFT.It is reported that LlamaLend is primarily used for NFT collateralized loans in the long-tail market, targeting small collectibles, featuring no liquidation, pay-as-you-go, and fixed rates based on pool utilization. (source link)

ChainCatcher news, the anonymous founder of the DeFi data website DeFiLlama, 0xngmi, announced on Twitter that the NFT lending project llamalend is about to launch, and the smart contract has been completed and open-sourced on Github.According to the contract introduction, llamalend is mainly used for NFT collateral loans in the long-tail market, specifically targeting small collectibles, featuring no liquidation, pay-as-you-go, and fixed rates based on pool utilization. (source link)