On March 17, 2026, dTRINITY dLEND was exploited for ~$257K through an empty market vulnerability. The attacker manipulated the liquidityIndex via repeated flashloan premium accrual on a newly-deployed cbBTC reserve with near-zero liquidity, inflating collateral valuations and enabling borrowing of the entire dUSD supply.

dTRINITY disclosed on X that yesterday, the dLEND deployment on Ethereum suffered its first deposit inflation attack. This incident drained the dUSD liquidity in the lending pool, resulting in approximately $257,000 in bad debt.The protocol has been temporarily paused, and the team is actively working on remediation measures. They have committed to covering 100% of the losses using internal funds. Repayment of the bad debt will begin within 24 hours of the announcement, after which dLEND is expected to resume operations.Deployments of dTRINITY on Fraxtal and Katana were not affected, and user funds remain safe. Each deployment maintains isolated reserves, collateral, and lending pools across different chains.