After an attack that took place this morning, the DeFi protocol Euler Finance lost nearly $197 million in cryptocurrencies. This makes it the biggest hack of the year 2023 so far.
DeFi protocol Euler Finance comes under attack
In the morning, the decentralized finance (DeFi) protocol Euler Finance was alerted by PeckShield, about a transaction that may result from a hack on its application :
Hi @eulerfinance: you may want to take a look: https://t.co/L7ddZhHNq5
— PeckShield Inc. (@peckshield) March 13, 2023
In the hour that followed, protocol teams confirmed the attackand the following information banner is displayed from the Euler Finance website, pending further information:
“We are aware of an issue affecting our platform at this time. Our team is currently working with security and law enforcement professionals. Please monitor our Discord and Twitter channels for updates. »
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Nearly 197 million stolen funds
The amount of this theft would amount to 196.98 million dollars, according to data collected by various on-chain analysts. For its part, the BlockSec company has created a shared Google Sees file in which it details all the stolen funds. The biggest take is notably reflected in nearly 74,000 stETH:
Details of stolen funds on the Euler Finance protocol
This attack could have been carried out thanks to a flash loan of 30 million DAI borrowed on Aave. A flash loan, or instant loan, is an operation allowing to borrow large amounts of funds to carry out a given operation and to repay this loan afterwards, all in the same transaction.
According to the first analyzes of PeckShield, the fault would come poor code building logic in the part supervising the collateralisation of investors coming to borrow on the platform. More specifically, it would be a problem in a function called “donateToReserve”:
2/ The hack is made possible due to the flawed logic its donation and liquidation. Specifically, the donateToReserves needs to ensure the donator is still over-collateralized. And liquidation needs to ensure the *correct* conversion rate from borrow to collateral asset. pic.twitter.com/dsHUP1orRP
— PeckShield Inc. (@peckshield) March 13, 2023
Based on the information available, the Euler Finance attack is the biggest hack of 2023 so far. The amount of stolen funds thus places this attack in 6th place in the ranking listing the various hacks in the crypto ecosystem.
👉 Also in the news — HSBC UK bank buys UK subsidiary of Silicon Valley Bank (SVB) for a symbolic pound
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Sources: Euler Finance, BlockSec
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I timidly discovered the world of blockchain at the end of 2018 during my quest for financial freedom. Initially invested moderately, it was only two years later that I took the gamble of betting everything on the movement that was taking shape then. I then dedicate 2021 to training myself better to acquire more knowledge and seriousness. As I often like to say: I still have a billion things to learn. And what I do know, I want to share with you.
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