# Superlend Etherlink Incident Report & Wind-Down Plan ### Summary Two BTC-denominated lending markets on Etherlink (WBTC and LBTC) were affected by a rounding precision vulnerability inherited from the Aave v3 codebase. * Total impact: \~0.68 BTC (\~$48k) * User funds: Not directly affected * Status: Fully patched All deposits remain accessible, and no user action is required. *** ### User Impact * All user funds remain safe and withdrawable * No positions were liquidated * No wallets were directly exploited * The impact was isolated to protocol reserves, not individual users *** ### What Happened Between February 26 and March 16 2026, automated contracts exploited a rounding asymmetry in the AToken burn mechanism used in Aave v3-based lending markets. By repeatedly cycling deposits and withdrawals, attackers extracted a very small amount of value per transaction. While negligible per cycle, the attack was executed at high frequency over several days, leading to a cumulative impact. Affected markets: * slWBTC: \~0.3377 BTC * slLBTC: \~0.3448 BTC Total: \~0.68 BTC *** ### Root Cause The issue originates from a rounding behavior in Aave v3’s accounting logic, where both mint (deposit) and burn (withdrawal) operations round in a way that creates a small imbalance in favor of withdrawals. This behavior has since been refined in newer Aave versions. Superlend’s Etherlink deployment inherited this earlier implementation. *** ### Why This Was Exploitable on Etherlink On higher-cost networks, this type of rounding imbalance is not economically viable to exploit due to transaction fees. However, Etherlink’s ultra-low transaction costs made it possible to execute the exploit repeatedly at scale, turning a minor precision issue into a meaningful extraction over time. *** ### Current Status & Remediation * The vulnerability has been fully patched across all affected pools * All markets remain operational and accessible * 0.1 BTC will be restored to reserves immediately * The remaining \~0.58 BTC will be covered progressively over time through protocol revenue We are committed to restoring full reserve health in a sustainable and transparent manner. *** ### Etherlink Markets Wind-Down Following this incident and a broader strategic evaluation, Superlend will begin a structured wind-down of its Etherlink lending markets and vaults over the coming months. This decision reflects: * Limited ecosystem liquidity depth * Constrained long-term scalability * A shift toward our core strength: cross-chain aggregation *** ### What This Means for Users * Withdrawals remain fully available at all times * New deposits will be phased out gradually, with advance notice * A detailed timeline will be shared for each market * The Superlend aggregator continues to operate normally across 15+ chains *** ### Forward Focus Superlend continues to scale as a cross-chain lending aggregator, connecting users to hundreds of markets across multiple ecosystems. This incident impacts protocol reserves, not the core product or user funds. We remain focused on: * Strengthening risk management frameworks * Improving deployment standards across chains * Building a more resilient, aggregation-first platform *** ### Full Technical Report For a detailed breakdown of the vulnerability, exploit mechanics, and on-chain references: {% file src="/files/z6VQU06QvNdfBlC9yZz3" %} --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.superlend.xyz/products/markets/superlend-etherlink-incident-report-and-wind-down-plan.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.