Cryptocurrency experts pointed out that Euler Finance, the credit protocol operating in the decentralized finance (DeFi) field, was hacked. According to the data, Euler Finance suffered an exploit that resulted in the loss of almost $197 million. This resulted in a sharp drop in the EUL price. Here are the details…
Cryptocurrency platform faced $180 million attack
On-chain detectives reported that hackers exploited a vulnerability in the decentralized finance (DeFi) protocol Euler Finance. In the flash loan attack, hackers stole over $188 million from the non-custodial DeFi protocol Euler Finance. The attacker has Ethereum (ETH) and the DAI stablecoin in his wallet.
According to smart contract auditor BlockSec, the losses occurred in four transactions in Dai (DAI), Wrapped Bitcoin (WBTC), staked Ethereum (sETH) and USDC. The hacker processed multiple transactions that stole around $196 million according to the last update. Data from on-chain data analytics firm Certik shows that the exploiter stole approximately 43 million coins in decentralized stablecoin DAI and approximately 93,800 coins in wrapped Ethereum (wETH). The ongoing attack has already become the biggest hack of 2023.
According to another crypto analytics firm Meta Seluth, the attacker is associated with a deflation attack that occurred a month ago. The attacker uses the Multichain bridge to transfer funds from BSC to Ethereum and they launched the attack today. Euler Finance is a protocol that raised $32 million in a funding round last year involving organizations such as FTX, Coinbase, Jump, Jane Street, and Uniswap.
EUL price bottoms out
With the spread of the hack, Euler Finance’s EUL price dropped 47 percent. The cryptocurrency fell from $ 6.49 to $ 3.06. At the time of writing, it’s changing hands at $3.1. Due to fast-trading investors, the coin’s volume in the last 24 hours has increased by 717 percent. Currently, the coin has a market cap of $34.5 million. So, the amount stolen from the platform is almost 6 times the EUL market value. You can also see the sharp decline in the cryptocurrency on the 24-hour chart below:
cryptocoin.com As we reported, Euler advertises itself as a capital-efficient, “permissionless” lending protocol that helps users earn interest on crypto assets or protect against volatile markets without the need for a trusted third party. Euler states that it has a number of unprecedented innovations in DeFi, including permissionless lending markets, reactive interest rates, protected collateral, MEV resistant liquidations, multi-collateral stabilization pools and much more.
Euler Finance has become quite popular especially for offering liquid staking derivatives (LSDs) services. LSDs are a relatively new type of token that allows stakers to increase their potential returns by offering liquidity for the cryptocurrencies they stake, such as ETH. Currently, LSDs account for up to 20 percent of the total value locked in central finance protocols.
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