Lending protocol Euler Finance lost $197M in a flash-loan attack, including $136M in stETH and $34M in USDC; Euler raised $32M in June 2022; EUL drops 45%+
- Euler Finance was hit by a flash-loan attack that resulted in a loss of $197 million, according to security analysts.
Euler Finance faces a $197M hole across stETH and USDC, while EUL holders absorbed an immediate decline of more than 45%.
The attack turns Euler’s protocol security into its immediate operating problem, despite the $32M it raised in 2022.
Second-order effects
The scale of Euler’s loss renews pressure on DeFi lending protocols to demonstrate that their lending and collateral mechanics can withstand flash-loan-driven exploits.
Repeated incidents at Euler and Cream make security assurances a sharper trust differentiator for users choosing among non-custodial lending venues.
Third-order effects
If such exploits continue to recur, DeFi lending is likely to compete less on nominal openness alone and more on demonstrable safeguards around composable protocol interactions.
The pattern points to a more security-constrained infrastructure finance stack, in which a protocol’s attack surface can rapidly outweigh its funding or token-market support.
The trend: DeFi lending is being shaped by a recurring trade-off between composability and the security controls needed to protect pooled on-chain assets.
We are aware and our team is currently working with security professionals and law enforcement. We will release further information as soon as we have it. https://twitter.com/...
Our followup analysis shows the very first hack tx is from a frontrunning bot. This bot gains nothing as the stolen $8.8M DAI funds are saved on another contract under the control of the original hacker https://etherscan.io/... https://twitter.com/... https://twitter.com/...
2/ The hack is made possible due to the flawed logic its donation and liquidation. Specifically, the donateToReserves needs to ensure the donator is still over-collateralized. And liquidation needs to ensure the *correct* conversion rate from borrow to collateral asset. https://t…
Audits also cost $50k+ each. It's an insane cost for running very few tests (that don't in practice cover shit). This part of the market is essentially a scam. https://twitter.com/...
What are the audit firms doing? Euler had 6 of these things. Truth is that audits don't do teams much good & are mostly “stamps of approval” required by the market. Anyone with experience can say that audit processes suck & often miss simple things. https://twitter.com/...
Main character for five minutes, hello everyone Obviously the post was a joke, I'm a big fan of Euler and their work, and consider them pretty structurally important Trying to see where I can help at all, but brighter minds than me are on it Get the memes in, you deserve it
euler hackers rugged every major pool except cbETH you can max borrow cbETH to salvage whatever you have left there was 30m in that pool 20 mins ago now 5m left good luck
It's unfortunate to see another exploit today, this instance had Euler suffer from a flashloan attack. This is the main contract: 0x036cec1a199234fC02f72d29e596a09440825 f1C Over 40+ txs went through Uniswap, Balancer Vaults, and Lido to drain over $170m. https://platform.arkhami…
@peckshield ... Almost certainly is blackhat as they were exploiting some random protocol on BSC a few weeks ago and then the funds deposited to Tornado https://etherscan.io/...
Quick explainer of Euler attack as I understand, stealing >$150M. Attacker utilizes abilities to: (1) Mint both E (lender) and D (borrow) tokens at once without needing to have assets (2) Donate to reserve, making you underwater instantly. A quick 🧵 @eulerfinance @peckshield http…
An unknown exploiter has withdrawn approximately 120k wstETH from the @eulerfinance pool. https://etherscan.io/... If you are holding wstETH in your wallet, or on another platform, you are not affected. We recommend not depositing any wstETH to Euler for now. https://twitter.com/…
DeFi is incredibly hard and every time I feel we're getting a handle on it, something happens. my heart goes out to the euler team, some of the best in the space. in fact much of solend v2 was inspired by their amazing work. they don't deserve this. https://twitter.com/...
Ooof. Haven't dug deep into the tx yet, but looks similar to the usual flash loan manipulation on money markets. But Euler takes risk way more seriously than most and has pretty robust models to approach oracles, so will have to see what went wrong here. https://twitter.com/...