Euler attack causes locked tokens, losses in 11 DeFi protocols, including Balancer

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


Balancer reported on March 13 that the Euler Boosted USD (bb-e-USD) pool had been affected by the exploit. Roughly $11.9 million value 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.

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a brand new UI will probably be provided “within the close to future” that can permit the remaining funds to be withdrawn, Balancer mentioned.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

Angle Protocol

Angle Protocol released a preliminary report on its publicity to the assault. It might have misplaced over $17 million value of USD Coin (USDC). This may occasionally have precipitated the agEUR stablecoin, which is pegged to the euro, to change into undercollateralized. The crew remains to be investigating and making an attempt to organize 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 crew mentioned.

Idle Finance

Idle Finance has provided an in depth record of its losses because of the Euler exploit. It appears to have misplaced round $5.9 million value of tokens in complete, based mostly on March 13 Ether (ETH) and euro costs. The crew 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 response to DeFi Llama. It reported oblique publicity to Euler, by means of Angle Protocol and Idle Finance. It has lost roughly $1.38 million. Nonetheless, the crew mentioned that any unhealthy debt not coated by Idle and Angle could be coated 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 response to the crew’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 potential lack of “lower than $1.5 million.”


InverseFinance reported that it was hit as effectively. It is DOLA Fed for the DOLA-bb-e-USD on Balancer lost over $860,000. The crew mentioned it’s speaking with Balancer in an try to 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 due to our Danger Administration Process.” The crew 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 based mostly on threat, time, and APY. Since Euler was rated Danger 2- Adventurous, SwissBorg customers “had a restricted quantity” invested in Euler. This mitigated in opposition to losses to the protocol, he defined.

Different affected protocols

Opyn, Imply, Sense and Harvest additionally reported they could have been affected by the exploit, although none have offered particulars on how a lot has been misplaced. This brings the entire 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 grew to become well-liked thanks partially to its assist for utilizing liquid staking derivatives (LSDs) corresponding 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 good contracts. For the reason that exploit, its TVL has fallen to $10.37 million.

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