Euler Finance $197M Hack event
Overview
The Euler Finance hack was a flash-loan-enabled exploit of the Ethereum lending protocol Euler on 14 March 2023 that drained roughly $197 million. The vulnerability lay in donateToReserves, a function introduced in a protocol upgrade that let a user donate balance to reserves without any subsequent health check on their own position. The attacker deployed two contracts: one used flash-loaned capital and Euler's leverage mechanism to mint a large borrowed position and then donated collateral away, deliberately pushing itself deep underwater; the second contract then liquidated it, and because Euler's liquidation logic applied a discount that scaled with how unhealthy the position was, the liquidator seized inflated collateral at a steep discount before withdrawing the underlying assets. The haul comprised roughly 86,000 ETH-denominated derivatives worth about $134.6 million, 849 WBTC worth about $18.6 million, $34 million of USDC and $8.9 million of DAI. Euler's total value locked collapsed from about $264 million to roughly $10 million, the EUL token fell more than 50%, and the auditor Sherlock paid out a $4.5 million claim. The exploit occurred on 14 March 2023 and caused cascading losses at protocols with Euler exposure including Angle Protocol, Balancer, Temple DAO and Yearn. Some of the proceeds were routed through Tornado Cash. At the time of rekt.news's report the attacker's address still held the stolen assets and no whitehat recovery had succeeded.
Within the DeFi Intel graph, Euler Finance $197M Hack connects to 1 tracked entity, most strongly to Euler Finance v2.
Relations
Top connections in the DeFi Intel knowledge graph (confidence-weighted, 1 of 1 total).
| Relation | Connected entity | Confidence |
|---|---|---|
affected | Euler Finance v2 | 70% |
Frequently asked questions
What is Euler Finance $197M Hack?
Euler Finance $197M Hack is an event tracked in the DeFi Intel knowledge graph. It is connected to 1 other tracked entity, most strongly to Euler Finance v2.
What type of entity is Euler Finance $197M Hack?
Euler Finance $197M Hack is classified as an event (event) in the DeFi Intel knowledge graph.
What is Euler Finance $197M Hack connected to?
In the DeFi Intel knowledge graph, Euler Finance $197M Hack is linked to 1 other tracked entity, most strongly to Euler Finance v2.
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