Euler Finance遭受Hacker攻击，多个Decentralized Finance项目受波及

Euler Finance, as an innovative project in the DeFi field, categorizes assets into different tiers based on risk, with each tier having unique lending permissions. However, on March 13, the project suffered a hacker attack, resulting in a loss of approximately $200 million.

As a foundational lending protocol, the security of Euler is particularly important. Due to the composability of DeFi, this attack also resulted in several other DeFi projects suffering losses of tens of millions of dollars.

Angle Protocol

Angle Protocol is a decentralized non-USD stablecoin project, primarily offering the euro stablecoin agEUR. Users can mint agEUR in two ways: first, by exchanging stablecoins like USDC 1:1 through the core module, and second, by minting with over-collateralization using assets like WETH through the lending module.

To increase project profits and incentivize holders, Angle has developed a yield strategy that uses the collateral for minting agEUR in the core module to generate yield. Euler is one of the important destinations for these funds.

Angle estimates a loss of $17.61 million in this attack. Although the project had a surplus of $5.58 million prior, it is still insufficient to cover the full payout. agEUR holders, liquidity providers, and hedge token funds will be compensated proportionally as a whole. Users who minted agEUR through the lending module can still repay their loans and redeem their collateral.

Balancer

Balancer is a decentralized exchange that suffered a loss of $11.9 million due to the bbeUSD (Euler Boosted USD) in this attack.

Boosted Pools is an innovative feature launched by Balancer in December 2021, aimed at increasing LP yield and facilitating user entry and exit from other protocols. Balancer deposits part of the funds in Boosted Pools into lending protocols, while the remaining portion is used for user trading.

In the Balancer Boosted Euler USD pool, users can deposit three stablecoins: USDT, USDC, and DAI. Balancer deposits these funds into Euler and issues LP tokens bbeUSD to users. bbeUSD can also be paired with other tokens in Balancer to earn liquidity mining rewards.

Balancer has increased the amount of this loss while promoting the use of bbeUSD. Apart from the Balancer Boosted Euler USDC pool, LPs of the four trading pairs using bbeUSD can only redeem part of their funds.

Idle Finance

Idle Finance is a yield aggregator that offers three yield strategies: Best Yield, Senior Tranches, and Junior Tranches. Junior Tranches may need to bear losses before Senior Tranches in the event of a security incident due to their higher risk and yield.

Idle Finance automatically invests funds such as DAI, USDT, and ETH into multiple projects to generate returns and reinvest them. Due to its preference for high-yield strategies, Euler Finance has become an important partner of Idle Finance.

Idle Finance stated that the Best Yield Vault and Yield Tranches have risk exposures to Euler Finance of $5.3271 million and $5.6628 million, totaling approximately $10.99 million.

Yield Protocol

Yield Protocol is a fixed-rate lending protocol that operates similarly to zero-coupon bonds. Depositors receive fyTokens, which can be redeemed for the underlying asset on a 1:1 basis upon maturity. Before maturity, fyTokens can be traded at a discount.

The liquidity pool of Yield Protocol is built on top of Euler, with part of the funds deposited in Euler and part held in fyTokens. The portion deposited in Euler is affected, with expected deposits of less than $1.5 million before the attack. The collateral of the borrowers remains unaffected as it is held in Yield Protocol.

Yearn

Yearn is a yield aggregator that concentrates funds into specific strategies. Yearn states that yvUSDT and yvUSDC have a total risk exposure of $1.38 million to Euler due to the use of Idle and Angle strategies.

The bad debts generated will be borne by the Yearn Treasury, and all Vaults will continue to operate normally.

Harvest

Harvest indicates that the USDC, USDT, and WETH Vaults are affected due to the use of Idle. Currently, Harvest has not specified a resolution plan and advises users to avoid interacting with these Vaults until the issue is resolved.

Inverse Finance

Inverse Finance's main products include the dollar stablecoin DOLA, the fixed-rate loan market FiRM, and the DBR representing borrowing rights.

Due to the liquidity of DOLA on Balancer in the DOLA/bbeUSD trading pair, losses were incurred. Inverse Finance stated that despite taking proactive measures to mitigate the losses, DOLA Fed still suffered a loss of $860,000.

SwissBorg

SwissBorg is a cryptocurrency asset management platform with regulatory licenses in multiple countries. It offers yield services through its proprietary mobile wallet app.

SwissBorg stated that the ETH and USDT in the Earn strategy suffered partial losses, including 1617.23 ETH and approximately 1.69 million USDT, which account for 2.27% and 29.52% of the subscription funds, respectively. SwissBorg will cover all losses.

Opyn

Opyn has developed a decentralized options protocol and perpetual options called Opyn Squeeth, and has built various yield strategies on Squeeth.

The affected strategy this time is the Zen Bull strategy, which combines the Crab strategy and leveraged long positions in ETH, suitable for low-volatility markets with an upward trend in ETH prices. Since the strategy requires collateral assets to purchase ETH through leverage, it may involve collateralized lending in Euler, leading to losses. Opyn has not yet disclosed the specific amount of losses and the handling plan.

Sherlock

Sherlock is a DeFi security provider that offers smart contract auditing and insurance services. Euler has reached a $10 million partnership with Sherlock, where Sherlock is responsible for auditing Euler's smart contracts and providing insurance.

After Euler was attacked, Sherlock has voted to compensate Euler with 4.5 million dollars and has executed a payout of 3.3 million dollars.

Sense Finance

Sense Finance is a fixed-rate lending protocol that allows trading of fixed-income assets such as Idle, and is therefore indirectly affected.