Euler assault causes locked tokens, losses in 11 DeFi protocols, together with Balancer

Spread the love

Contagion from the Dec. 12 flash mortgage assault towards Euler has unfold far and broad, leading to frozen or misplaced funds for 11 totally different decentralized finance (DeFi) protocols, in keeping with Dec. 13 reviews from every of them on Twitter. Balancer, an Ethereum protocol with over $1 billion complete worth locked (TVL), is among the many affected protocols. Under is a rundown of the most important exploits and what we all know up to now.


Balancer reported on March 13 that the Euler Boosted USD (bb-e-USD) pool had been affected by the exploit. Roughly $11.9 million price of tokens from this pool had been despatched to Euler through the exploit. The balancer emergency subDAO reacted by pausing the pool and placing it into restoration mode. Nonetheless, over 65% of the pool’s TVL had already been misplaced by the point it was paused.

Because of a bug within the app’s consumer interface (UI), liquidity suppliers can’t retrieve the remaining funds left within the pool. Nonetheless, a brand new UI shall be provided “within the close to future” that can enable the remaining funds to be withdrawn, Balancer mentioned. No different swimming pools have been affected, Balancer clarified.

Angle Protocol

Angle Protocol launched a preliminary report on its publicity to the assault. It might have misplaced over $17 million price of USD Coin (USDC). This may occasionally have induced the agEUR stablecoin, which is pegged to the euro, to turn out to be undercollateralized. The staff remains to be investigating and making an attempt to arrange an in depth stability sheet. All minting and redemption of agEUR is at the moment paused, however debtors can nonetheless repay their money owed to the protocol as regular, the staff mentioned.

Idle Finance

Idle Finance has supplied an in depth checklist of its losses because of the Euler exploit. It appears to have misplaced round $5.9 million price of tokens in complete, primarily based on March 13 Ether (ETH) and euro costs. The staff has paused all Greatest Yield vaults and Yield Tranches associated to Euler to forestall additional losses.

Yearn Finance

Yearn Finance has over $423 million in TVL, in keeping with DeFi Llama. It reported oblique publicity to Euler, by way of Angle Protocol and Idle Finance. It has misplaced roughly $1.38 million. Nonetheless, the staff mentioned that any unhealthy debt not lined by Idle and Angle can be lined by the Yearn Treasury.

Yield Protocol

Yield Protocol is one other protocol affected by the exploit. Its “mainnet liquidity swimming pools are constructed on Euler,” in keeping with the staff’s announcement concerning the assault. The corporate has disabled the mainnet app, paused borrowing, and is investigating the assault. Its mainnet liquidity swimming pools seem to have been affected, with a attainable lack of “lower than $1.5 million.”


InverseFinance reported that it was hit as nicely. It is DOLA Fed for the DOLA-bb-e-USD on Balancer misplaced over $860,000. The staff mentioned it’s speaking with Balancer in an try and get these funds returned to depositors.

Associated: Euler Finance hacked for over $195M in a flash mortgage assault


SwissBorg reported that “a small portion of [its] Good Yield Program was impacted” by the exploit. Nonetheless, “the extent of the injury is minimal because of our Threat Administration Process.” The staff mentioned that it might compensate all losses from its funds, and its customers “is not going to endure any loss from this occasion.”

In a Telegram dialog with Cointelegraph, SwissBorg founder Cyrus Fazel clarified that the protocol ranks yield methods primarily based on threat, time, and APY. Since Euler was rated Threat 2- Adventurous, SwissBorg customers “had a restricted quantity” invested in Euler. This mitigated towards losses to the protocol, he defined.

Different affected protocols

Opyn, Imply, Sense and Harvest additionally reported they may have been affected by the exploit, although none have supplied particulars on how a lot has been misplaced. This brings the full variety of affected protocols to 11, with $37.6 million in cumulative losses. 

Euler Finance is a crypto borrowing and lending protocol that runs on Ethereum. It turned in style thanks partly to its assist for utilizing liquid staking derivatives (LSDs) akin to Coinbase Staked ETH (cbETH) or Lido Staked ETH (stETH) as collateral for loans. On March 8, Euler had over $311 million in crypto locked inside its sensible contracts. Because the exploit, its TVL has fallen to $10.37 million.