Lending protocol Euler has secured $4 million to enhance the security of its upcoming v2 protocol, incorporating extensive audits, modular design, and expert collaboration to set new safety standards in the DeFi industry.
Major Security Upgrade for Euler v2
Euler, a decentralized finance (DeFi) protocol, has allocated $4 million for a comprehensive security overhaul of its upcoming v2 platform. This move, backed by the Euler DAO, involves extensive code audits and the introduction of a modular architecture to reduce risks.
The v2 platform, set for release in the second quarter of 2024, will adopt a modular structure and will feature components like the Euler Price Oracle, Euler Vault Kit (EVK), and the Ethereum Vault Connector (EVC), which are designed to offer users greater flexibility in creating lending markets.
Security Lessons from 2023 Exploit
The push for enhanced security comes in the wake of a $200 million exploit that Euler suffered in March 2023. The incident has driven the protocol's developers to prioritize safety in the new version.
The $4 million budget for security represents a significant increase compared to typical DeFi projects, which often allocate much lower amounts to security measures. Euler v2’s security framework's modular structure is conducive to isolating risks and simplifying the auditing process to ensure any vulnerabilities are identified and addressed promptly.
Collaboration with Security Experts
Euler's security initiative has involved collaboration with several high-profile security experts, including engineers from Certora and the developer of the Yield protocol, Alberto Cuesta Cañada, and Cmichel, StErMi, leading security engineers from Spearbit. These experts have been involved in the project's early stages to help detect potential vulnerabilities.
The development team also employed advanced testing methodologies such as fuzz testing and formal verification to complement the extensive audits. The protocol enabled extensive internal and external audits, with 29 code audits conducted by 12 top security firms.
Global Code Audit Competition
In addition to these efforts, Euler Labs organized a global code audit competition with $1.25 million in rewards for identifying bugs in the v2 codebase. The competition attracted over 600 participants, and no high or medium-severity issues were discovered. This further underscores the protocol’s emphasis on creating a secure platform for its users.
Launch of Euler v2
As the launch of Euler v2 approaches, the protocol's developers aim to restore trust in the platform and set a new standard for security in the DeFi space. The upgrade aims to offer increased flexibility for users to create custom lending markets and strategies. The extensive security measures and expert collaborations highlight Euler’s commitment to preventing future exploits and ensuring the safety of its users.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
