Inverse Finance
Summary
Inverse Finance is an Ethereum-based DeFi protocol known for its DOLA stablecoin and FiRM fixed-rate lending market, founded in late 2020 by Nour Haridy. The protocol suffered two oracle price manipulation exploits within two months in 2022 — the first in April for approximately $15.6 million and the second in June for a protocol loss of approximately $5.8 million — collectively representing one of the most significant serial oracle attack sequences in DeFi history. The protocol has since deprecated the vulnerable Anchor and Frontier lending markets, rebuilt on FiRM with Chainlink oracles, and undertaken a multi-year bad-debt repayment program.
Connected Entities
1 entitiesTimeline(10 events)
2020-12-01
Inverse Finance founded by Nour Haridy; initial products include the Anchor money market and DOLA stablecoin.
2021-03-01
INV token reaches an all-time high of approximately $2,075.
2022-04-02
First oracle manipulation exploit: attacker manipulates Keep3r TWAP oracle for INV/ETH on SushiSwap, borrows $15.6M in ETH, WBTC, YFI, and DOLA. Borrowing on Anchor immediately paused.
2022-04-03
Inverse Finance DAO proposes 100% repayment to affected wallets; announces migration to Chainlink oracle for INV pricing.
2022-06-16
Second oracle manipulation exploit: attacker uses 27,000 wBTC flash loan to inflate yvcrv3crypto LP token price on Frontier platform, causing $5.8M protocol loss with $1.2-1.3M directly stolen. Attacker deposits ~1,000 ETH to Tornado Cash.
2022-06-17
Inverse Finance pauses all Frontier borrowing, hires RiskDAO, issues public bounty appeal to attacker.
2022-10-01
Inverse Finance FiRM contracts audited via Code4rena competitive audit (code-423n4/2022-10-inverse).
2022-12-16
FiRM (Fixed Rate Market) protocol launches on Ethereum mainnet with Chainlink oracles and Personal Collateral Escrow architecture.
2023-03-13
Euler Finance exploited for ~$197M; Inverse Finance's exposure to Euler contributes additional bad debt to the protocol's balance sheet.
2025-07-28
Inverse Finance raises $2.6M by selling 104,000 INV tokens to strategic DeFi investors at 25 DOLA each to accelerate bad-debt repayment, reducing remaining obligations to approximately $3.4M.
Decision Log
- hash: FxRPDLSNyRK7WwrJdLCzggnWsoF12D3xPq95YHkDzCLb
This investigation is cryptographically anchored to the Solana blockchain and source URLs are archived via the Internet Archive.
model: claude-sonnet-4-6
generated: 5/30/2026, 6:32:52 PM
last updated: 5/30/2026, 6:32:55 PM
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