Euler’s TVL crashed to lower than $100,000 after struggling a $197M exploit in early 2023.
Euler Finance, a DeFi lending protocol wracked by a nine-figure exploit final yr, is hoping to rise from the ashes with the launch of its v2 iteration.
Euler deployed its v2 protocol on Feb. 22, describing the brand new platform as a modular lending protocol spanning two core elements — the Euler Vault Connector (EVK) and Ethereum Vault Connector (EVC). The EVK permits builders to permissionlessly deploy bespoke lending vaults, whereas the EVC facilitates composability between vaults.
“Collectively, the EVK and EVC present the pliability to construct or recreate any kind of pre-existing or future-state lending product contained in the Euler ecosystem,” Euler stated. “EVK empowers builders to construct ERC-4626 vaults with unparalleled freedom, eliminating constraints on governance, oracles, and upgradability… EVC permits seamless connection of vaults inside the Euler ecosystem.”
Euler added that the brand new protocol permits the creation of artificial and real-world belongings, nested vaults, and permissionless rewards mechanisms.
The launch of Euler v2 follows a devastating exploit suffered by the protocol in March 2023.
Information from DeFi Llama exhibits the overall worth locked (TVL) in Euler crashing from $264M on March 13 to simply $10.4M the following day. Bugs in Euler’s good contracts allowed the hacker to make off with $136M value of Lido’s stETH token, $34M in USDC, $18.5M in Wrapped BTC, and $8.8M in DAI. The incident ranks because the seventh-largest on-chain exploit at $197M, in keeping with Rekt.
Nonetheless, the attacker later returned $177 value of Ether belongings to Euler over the course of 4 weeks following the incident after negotiating to maintain 10% of their haul as a bug bounty. The 2 events entered into negotiations after Euler supplied a $1M bounty for data relating to the hacker’s identification and threatened to have interaction regulation enforcement. The hacker had beforehand made off with $346,000 focusing on a BNB Chain-based DeFi protocol.
Regardless of the protocol distributing belongings again to customers, Euler by no means recovered, with the protocol’s TVL constantly trending beneath $100,000 since June.
“The corporate has been heads down constructing what we imagine would be the merely the most effective borrow/lend protocol accessible in the present day,“ Euler stated.
