Euler Finance Announces User Redemption Plan After Recovering Stolen Funds

On April 6th, the DeFi lending agreement Euler Finance announced a user redemption plan, in which a total of 95556.36059211764 ETHs and 43063729.35 DAIs were recovered. The unrecycled funds included a total of 1100 ETHs sent by the attacker to Tornado Cash and 100 ETHs sent to the Ronin attacker’s address. The other 100 ETHs were directly returned to the user by the attacker, and the user returned 12 ETHs to the Euler DAO vault. The DAO vault address also holds 3396964 USDCs and 1007321 DAIs from the Sherlock protocol.

Euler Finance Announces User Redemption Plan

Introduction

On April 6th, 2021, Euler Finance, a decentralized finance (DeFi) lending agreement, announced a user redemption plan after recovering stolen funds. This plan follows an attack that resulted in a loss of 95556.36059211764 ETHs and 43063729.35 DAIs. In this article, we will discuss the recovery process and the measures taken by Euler Finance to ensure security and prevent future attacks.

The Attack and Recovery

The attack was carried out on April 2nd on the Euler Finance platform. The attacker exploited a vulnerability in the platform’s smart contracts, allowing them to steal funds from the Euler DAO vault. After the attack, Euler Finance immediately took action by freezing the contract and notifying the community.
The recovery process began with the team tracking down the stolen funds. Euler Finance was able to recover most of the stolen funds, including 1100 ETHs sent to Tornado Cash and 100 ETHs sent to the Ronin attacker’s address. The other 100 ETHs were returned directly to the user by the attacker, who also returned 12 ETHs to the Euler DAO vault.
Currently, the DAO vault address holds 3396964 USDCs and 1007321 DAIs recovered from the Sherlock protocol. These funds will be used to cover the losses incurred by users from the attack.

The User Redemption Plan

Euler Finance announced a user redemption plan on April 6th, 2021, to compensate users affected by the attack. The plan involves the use of funds recovered by Euler Finance to reimburse users in the form of Euler (EUL) tokens equivalent to the value of their lost funds.
The user redemption plan will be carried out in three phases. In the first phase, users will be required to submit a claim form providing details of their losses. The second phase involves the verification of claims by Euler Finance, which will take up to 14 days. Finally, in the third phase, the verified claims will be reimbursed with EUL tokens.

Security Measures and Prevention

The attack on Euler Finance highlights the importance of security in the DeFi space. Euler Finance has taken several measures to prevent future attacks and ensure security on its platform. These measures include:
– Code Audits: Euler Finance will be conducting regular code audits to identify and fix vulnerabilities in its smart contracts.
– Insurance: Euler Finance has taken out insurance to compensate users in the event of a security breach or hack.
– Multi-Sig Wallet: Euler Finance has implemented a multi-sig wallet to prevent unauthorized access to sensitive operations.
– Smart Contract Upgrades: Euler Finance is constantly upgrading its smart contracts to improve security and prevent attacks.

Conclusion

The attack on Euler Finance was a wake-up call for the DeFi space, highlighting the importance of security and the need for measures to prevent attacks. Euler Finance’s recovery and user redemption plan demonstrate the importance of community involvement and transparency in the DeFi space. As DeFi continues to grow, security measures will become increasingly critical to protect users and prevent attacks.

FAQs

1. What is Euler Finance?
Euler Finance is a DeFi lending agreement that allows users to lend and borrow cryptocurrency.
2. How did the attacker steal funds from Euler Finance?
The attacker exploited a vulnerability in Euler Finance’s smart contracts, allowing them to steal funds from the Euler DAO vault.
3. What measures has Euler Finance taken to prevent future attacks?
Euler Finance has taken several measures to prevent future attacks, including code audits, insurance, multi-sig wallets, and smart contract upgrades.