Monday, 20 March 2023

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

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

Contagion from the Dec. 12 flash loan attack against Euler has spread far and wide, resulting in frozen or lost funds for 11 different decentralized finance (DeFi) protocols, according to Dec. 13 reports from each of them on Twitter. Balancer, an Ethereum protocol with over $1 billion total value locked (TVL), is among the affected protocols. Below is a rundown of the major exploits and what we know so far.


Balancer reported on March 13 that the Euler Boosted USD (bb-e-USD) pool had been affected by the exploit. Approximately $11.9 million worth of tokens from this pool were sent to Euler during the exploit. The balancer emergency subDAO reacted by pausing the pool and putting it into recovery mode. However, over 65% of the pool’s TVL had already been lost by the time it was paused.

As a result of a bug in the app’s user interface (UI), liquidity providers cannot retrieve the remaining funds left in the pool. However, a new UI will be offered “in the near future” that will allow the remaining funds to be withdrawn, Balancer said. No other pools have been affected, Balancer clarified.

Angle Protocol

Angle Protocol released a preliminary report on its exposure to the attack. It may have lost over $17 million worth of USD Coin (USDC). This may have caused the agEUR stablecoin, which is pegged to the euro, to become undercollateralized. The team is still investigating and attempting to prepare a detailed balance sheet. All minting and redemption of agEUR is currently paused, but borrowers can still repay their debts to the protocol as normal, the team said.

Idle Finance

Idle Finance has provided a detailed list of its losses due to the Euler exploit. It seems to have lost around $5.9 million worth of tokens in total, based on March 13 Ether (ETH) and euro prices. The team has paused all Best Yield vaults and Yield Tranches related to Euler to prevent further losses.

Yearn Finance

Yearn Finance has over $423 million in TVL, according to DeFi Llama. It reported indirect exposure to Euler, through Angle Protocol and Idle Finance. It has lost approximately $1.38 million. However, the team said that any bad debt not covered by Idle and Angle…

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