My first attack was with 5 slingers and I lost 4 when I attacked a town of size 1!
My second attack was 5 swordsmen and 10 slingers attacking a town of size 2. No losses.
http://s4.ikariam.org/index.php?view=informations&mainId=10014&articleId=10015You also rob gold (Town stage x (Town stage - 1) Percent) out of the treasury of your victim.
What about resources such as wood?
Didn't caustic get 60 wood from a level 1 town?