• 2 min read
Inverse Finance Suffers an
Exploit Resulting in Approximately $240,000 Loss
According to monitoring by BlockSec Phalcon, an attacker likely manipulated the on-chain price of the DOLA stablecoin on Ethereum, triggering the protocol's erroneous liquidation mechanism. This led to the forced liquidation of collateral from multiple users, with losses currently reaching $240,000.
AUTOSEC.DEV
- Exploit Date: March 2, 2026
- Target Project: Inverse Finance
- Project Overview: Inverse Finance is an Ethereum-based decentralized lending protocol whose core asset is the DOLA stablecoin. Users mint DOLA or engage in lending activities by providing collateral.
- Loss Amount: $240,000
- Attack Vector: Unknown
Incident Review & Technical Details
- Attack Path:
- (1) The attacker identified and targeted the price feed mechanism associated with the DOLA stablecoin within Inverse Finance's smart contracts on Ethereum.
- (2) Through a series of anomalous transactions, the attacker successfully interfered with DOLA’s market pricing. This artificial price volatility misled the protocol's risk engine.
- (3) Due to the malicious price manipulation, the system determined that multiple users' collateral values were insufficient or debt ratios were too high, thereby triggering automated liquidation procedures.
- Impact: The incident directly resulted in the malicious liquidation of several lending accounts within the protocol, causing substantial capital loss primarily affecting contract users on the Ethereum chain.
- Official Assessment: Preliminary findings suggest a market manipulation attack targeting DOLA pricing. The project team has not yet released a formal Post-Mortem report.
- Investigation Progress: Security monitoring systems have issued alerts and contacted the project team. As persistent risks remain uncertain, some technical details are currently being withheld. All users with potential exposure are advised to take immediate defensive measures.