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Curve LlamaLend

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[VERIFIED][src:defillama]

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Summary

Curve LlamaLend (also referred to as the crvUSD lending markets) is a decentralized, permissionless isolated lending protocol built by Curve Finance that allows users to borrow crvUSD against crypto collateral using the LLAMMA soft-liquidation mechanism. The protocol has experienced multiple distinct incidents since launch: a $10 million bad-debt event in June 2024 tied to the founder's oversized leveraged positions, an oracle-manipulation attack on the sDOLA market in March 2026 resulting in approximately $240,000 in borrower losses, an October 2025 market crash that left the CRV-long vault approximately $700,000 underbacked, and a May 2026 third-party exploit (Stake DAO) that forced the sunsetting of an associated Arbitrum LlamaLend market. The protocol's core contracts have not been directly compromised by a code-level hack, but recurring bad-debt events, oracle design flaws in permissionlessly created markets, and governance concentration risks have drawn sustained scrutiny including a flag from on-chain investigator ZachXBT.

Connected Entities

1 entities
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□Curve LlamaLend
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    Timeline(9 events)

    30 July 2023

    Curve Finance liquidity pools exploited via Vyper compiler reentrancy bug (versions 0.2.15, 0.2.16, 0.3.0); initial losses estimated at ~$70M, ultimately ~$52M after white-hat recoveries. LlamaLend not yet deployed.

    13 April 2024

    Statemind releases pre-launch audit of LlamaLend, identifying 1 Critical, 1 High, and 4 Medium vulnerabilities — all reportedly remediated before deployment.

    13 June 2024

    CRV drops ~28–30% following the UwU Lend exploit. Curve founder Michael Egorov's $95.7M in stablecoin debt backed by ~47% of CRV supply is liquidated across five platforms. LlamaLend CRV market accrues $10M in bad debt.

    15 June 2024

    Michael Egorov announces full repayment of the $10M LlamaLend bad debt, funded in part by a $6M USDT sale of 30M CRV to NextGen Venture Partners.

    19 December 2024

    Egorov liquidated again for 918,830 CRV (~$882,000) as CRV falls more than 12% in 24 hours, per CoinDesk reporting.

    10 October 2025

    Broad market crash — attributed in part to tariff announcement — triggers $19B in global leveraged liquidations. LlamaLend CRV-long market accrues approximately $700,000 in bad debt as gas spikes prevent timely liquidations; lender vault drops to ~70% solvency.

    2 March 2026

    sDOLA–crvUSD LlamaLend market exploited via flash-loan oracle manipulation attack. Attacker profits ~$240,000; borrowers in the market are liquidated; lenders unaffected. Curve Finance confirms investigation on X.

    27 April 2026

    Michael Egorov proposes permissionless market-based bad-debt recovery pool for the October 2025 CRV-long LlamaLend bad debt, centered at 71% solvency, as an alternative to bailout mechanisms.

    27 May 2026

    Stake DAO exploited on Arbitrum; attacker mints 5.4 trillion vsdCRV via compromised deployer key. Actual losses limited to ~$91,000. The Arbitrum asdCRV LlamaLend market is sunset; crvUSD depositors directed to migrate.

    Provenance & Audit Trail
    Anchored on SolanaVerify on-chain30 Wayback Archivessrc:defillama

    Decision Log

    This investigation is cryptographically anchored to the Solana blockchain (3 events). 30 of 41 cited source URLs have an Internet Archive snapshot.

    full audit log →version history →

    model: claude-sonnet-4-6

    generated: 5/4/2026, 2:54:18 AM

    last updated: 8/30/2026, 3:54:58 AM

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