Euler Finance Sends Frightful Stern Warning To Hacker Who Took $200 Million

The malicious hacker who was responsible for carrying out flash loan assaults on the Euler Finance protocol. Users of the platform had assets worth a cumulative number of $200 million that was stolen by the entity.

It has been given a stern warning by the firm about the inappropriate behavior it has displayed. Because of the work of the group of people who are in charge of Euler Finance, it is already general knowledge.

It made the required preparations to provide a reward of one million dollars for information, and it is expected to get it.

That would lead to the discovery of the person responsible for the hack. It’s likely that this will lead to the perpetrator of the attack being apprehended.

Those individuals who are fully allowed to get the funds are the ones who are getting them back. After it was determined that Euler Financial had been hacked, the announcement was made.

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The incident resulted in the theft of a total of $197 million worth of DAI, stETH, USDC, WBTC, and wstETH. After the hacker had left, the protocol had an incredibly insufficient amount of tokens remaining.

Increases in the Use of the Euler Protocol

The Euler protocol saw a significant increase in the total quantity of lending that took place. One of the initial signs that something was wrong was that it occurred within the span of an hour. It is clear that there was a mistake made.

A tactic known as “DonateToReserves” was utilized by the hacker in order to deliberately hurt their positions. They were capable of selling their shares and walking away with their winnings as a result of this.

The hacker was successful in stealing both the first bonus and the liquidation bonus. The fallout came about as a direct consequence of this. It was successful for the hacker on a financial level to a substantial degree.

It was difficult to thwart the attack because all of the hacks occurred during the same period of time. This meant that there was no time for any preventative measures to be put in place before the exploit was employed.

MEV Bots Help To Prevent Future Attacks

However, the bots with Miner Extractable Value (MEV) can be used as a remedy against similar attacks with the potential to re-emerge.

These bots have the capability of recognition. The fraudulent transactions were carried out in real time by the leading runners.

Implementation of these measures could protect against assaults of a similar nature in the future. This approach has the potential to be adopted in the near or distant future.

From among the many different types of collateral tokens that might be accessed on Euler. cbETH and USDT were the sole ones that weren’t targeted in this attack, and they were the only ones.

One possible explanation for this is that there is not a great deal of liquidity on the chain. A major USDT pool was created as a direct result of the panic that occurred over the weekend (3pool on curve).

It is expected that the majority of cbETH’s USDT would be lost. This was caused by the USDC panic. cbETH does, however, contain a large number of other, less significant pools that are dispersed throughout a variety of protocols.

After the hacker had successfully conducted the cyberattack, they paid back any flash loans that had been taken out. It obtained these items through trading with Aave v2 and Balancer.

It refers to the entire quantity of ETH and DAI monies that were obtained dishonestly in this manner. The magnitude of the transaction that took place between stETH and ETH.

It was substantial enough to contribute something in the neighborhood of 5–10% of the whole. Curve has made an adjustment to the precautionary measure that is included in the stETH pool.

That is the modification that they have made to their system.

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