Euler Finance, a non-custodial DeFi lending protocol built on the Ethereum network, has lost almost $200 million due to a security breach. The native ERC-20 token for the protocol has also seen a steep price decline.
Euler Parts Ways With $196.9M
According to the blockchain explorer Etherscan, the bad actor commenced the exploit by taking a flash loan of 30 million DAI stablecoins, worth $29.7 million, from the lending protocol Aave. This fund and more went into the Euler protocol, aiding the hacker’s exploit.
The bad player performed several transactions involving the following cryptocurrencies: DAI, wrapped BTC (WBTC), staked ETH (stETH), and USDC. According to blockchain security firm BlockSec, the hacker pocketed profits worth $8.7 million in DAI, $18.5 million in WBTC, $135.8 million worth of stETH, and $33.8 million in USDC, at the end of the attack.
Self-proclaimed on-chain detective ZachXBT stated in a tweet that the attacker is “almost certainly” a black hat, discarding any chances of the player being a white hat who could have returned the funds for a bounty fee.
Euler Finance Comments
The team behind the DeFi lending firm commented after being alerted by the blockchain security company PeckShield. The project’s developers said in a tweet:
“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.”
Meanwhile, the native cryptocurrency for Euler Finance, EUL, has lost over 48% of its value. It went from around $6 to the current trading price of $3 at press time.
Euler’s total value locked (TVL), as revealed on the analytics platform DeFiLlama, has dropped significantly. Earlier today, the protocol commanded over $263 million in TVL. Currently, it holds only $15.42 million in its TVL, representing about a 95% decline.
Euler’s latest security breach places it in the leading position of cryptocurrency hacks in 2023. Recent security exploits include the Arbritrum-based Hope Finance’s $2 million attack and the Polygon-based Jarvis’ $660,000 exploit.
