Euler is Back: Following $240M Hack, Euler v2 Arrives as a Modular Credit Layer of On-Chain Finance
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After a $240 million exploit in March 2023 and “one of the most comprehensive security audits in DeFi history,” Ethereum-based protocol Euler reemerged with its second version.
According to the press release, Euler v1 was made for a particular use case, but Euler v2 supports many.
Euler v2 is a meta-lending protocol that supports unlimited use cases for on-chain credit.
Therefore, it acts as the credit layer of on-chain finance in several manners.
First, it introduces this framework that allows limitless use cases in on-chain credit for DeFi users and institutional players.
Next, it enables builders to create vaults that collateralize “almost any kind of digital asset.” This, in turn, opens up “new avenues for innovation in DeFi,” the team argued.
Finally, the team claims that Euler v2 eliminates fragmentation and capital inefficiency, which have notoriously been massive issues in isolated lending markets.
In March 2023, Euler Finance suffered a flash loan attack, which resulted in the theft of over $200 million worth of digital assets.
The exploiter returned some $102 million to the protocol.
1/ Security through modularity
Euler was built with a modular design to enhance security and risk management by isolating core functions into independently operable and auditable modules.
This design approach allowed us to implement the Swiss Cheese security model. pic.twitter.com/woPAWMcgGx
Euler’s latest move enables builders and institutions to create a credit product from the ground up.
They can create highly customizable borrowing and
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