Euler Conducts 29 Audits Amid v2 Launch, Spends $4 Million for Security

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Key Takeaways

  • Euler DAO invested over $4 million in security measures to ensure the robustness of Euler v2.
  • The audit process involved 29 separate audits conducted by 12 leading cybersecurity firms.
  • Euler also conducted a $1.2 million public bug bounty program, which found no critical bugs

Euler Finance has unveiled the results of its comprehensive security audit process for the upcoming relaunch of its decentralized lending protocol, Euler v2. The project, which is set to launch in the second quarter of 2024, has undergone one of the most rigorous security assessments in the decentralized finance (DeFi) sector.

Euler DAO invested over $4 million in security measures to ensure the robustness of Euler v2. This investment is significantly higher than the typical budgets allocated by other DeFi projects, which often remain in the low six figures. The audit process involved 29 separate audits conducted by 12 leading cybersecurity firms.

Security experts from various firms and backgrounds were involved in the process. This included Certora, a firm specializing in smart contract verification, and Alberto Cuesta Caรฑada, a prominent developer known for his work on the Yield protocol. Additionally, Cmichel and StErMi from Spearbit, a Web3 security firm, contributed their expertise.

Euler v2 features a modular architecture designed to enhance security by isolating potential vulnerabilities. The security process included advanced testing methods such as fuzz testing and formal verification, developed in collaboration with the security experts.

To further bolster its security, Euler organized a massive code audit competition through Cantina, attracting over 600 participants globally. This competition offered a $1.25 million prize pool and was aimed at identifying any potential vulnerabilities that might have been missed by the initial audits.

The results from the 29 audits showed that while two critical and five high-severity vulnerabilities were initially identified, all issues have been resolved. The protocol also conducted a $1.2 million public bug bounty program, which did not uncover any critical, high, or medium-severity issues. The bounty participants were rewarded with a total of $200,000 for identifying lower-severity vulnerabilities.

Euler DAO has dedicated over $11 million to the development of Euler v2, including the significant security investment. This effort includes hiring new staff to ensure adherence to ISO27001 standards, commonly used by banks and defense companies.

Euler Finance suffered an exploit in March 2023, resulting in almost $200 million being lost over four transactions in dai (DAI), wrapped bitcoin (wBTC), staked ether (sETH), and USDC. The exploiter reportedly used a flash loan to conduct the attack by temporarily tricking the protocol into falsely assuming it held varying amounts of eToken and dToken.ย 

To retrieve the stolen funds, the firm offered the hacker a 10% bounty worth $19.7 million, with a warning to initiate a $1 million reward for information on the attacker if the remaining 90% of the funds were not returned. Following the attack, the exploiter returned all of the stolen funds in less than a month

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Saniya Raahath
Saniya Raahath

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