dTRINITY Hack

Reported loss $257K
Ethereum
Flash Loan Attack

What happened

On March 17, 2026, dTRINITY's Ethereum dLEND market incurred approximately $257,000 in dUSD bad debt through a liquidity-index inflation exploit. dTRINITY reports that the bad debt was fully covered.

Technical root cause

An accounting edge case inherited from the Aave V3 fork let flash-loan fees disproportionately inflate liquidityIndex when the cbBTC reserve was effectively empty. The resulting precision and accounting distortion overstated collateral value.

How it happened

The attacker targeted an almost-empty cbBTC reserve and repeatedly used flash-loan premium accrual to inflate its liquidity index. The distorted accounting overstated collateral value, allowing the attacker to borrow dUSD before recovering the deposited collateral.

Protocol details

Classification Borrowing and Lending / Protocol Logic / Token & Share Accounting
Protocol Type Exploit/Flash Loan Attack
Implementation language Solidity
Protocol links Website

Market Context at Time of Hack

Token Price at Hack $0.0502
Market Cap at Hack $4K
Reported loss / token market cap 100.00%

Evidence

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