Euler Prepares for v2 Launch with Unprecedented $4M Security Upgrade

As a seasoned researcher with years of experience delving into the complexities of DeFi, I find Euler’s decision to invest $4 million in security measures for its upcoming v2 protocol nothing short of impressive. The lessons learned from the 2023 exploit have not been lost on them, and their commitment to prioritizing safety is evident.


Euler, a lending platform, has raised $4 million to bolster the security of its upcoming version 2 (v2). This funding will facilitate comprehensive audits, a modular structure, and collaborations with industry experts to establish exceptional safety benchmarks within the Decentralized Finance (DeFi) sector.

Major Security Upgrade for Euler v2 

Euler, a protocol in the decentralized finance (DeFi) sector, is planning to spend $4 million on a thorough security upgrade for its upcoming v2 platform. This decision, supported by the Euler Decentralized Autonomous Organization (DAO), includes extensive reviews of the code and the adoption of a modular design to minimize potential risks.

In Q2 of 2024, we’re launching version 2 of our platform, which will be structured in a modular fashion. Key components such as the Euler Price Oracle, Euler Vault Kit (EVK), and Ethereum Vault Connector (EVC) will be integrated. These elements are designed to empower users with more freedom when setting up lending markets by providing them with additional flexibility.

Security Lessons from 2023 Exploit

In response to a significant cyber attack that cost Euler $200 million back in March 2023, there is now a strong emphasis on improving security for future updates. This unfortunate event has prompted the development team to place greater importance on safety in the upcoming release.

In contrast to most DeFi projects that generally set aside relatively small funds for security, Euler v2’s budget of $4 million dedicated to security stands as a substantial upgrade. The modular structure of its security framework makes it easier to identify and handle potential risks, streamlining the auditing process and swiftly addressing any vulnerabilities found.

Collaboration with Security Experts

Euler’s security strategy has seen partnership with notable security specialists such as Certora’s engineers, Alberto Cuesta Cañada, developer of Yield protocol, and top-tier security professionals from Spearbit, Cmichel, and StErMi. These experts have been integral in the project since its onset, contributing to the identification of potential weaknesses.

In addition to their rigorous audit process, which included 29 audits led by 12 leading security firms, the development team utilized sophisticated testing techniques like fuzz testing and formal verification to bolster their efforts. This protocol allowed for both internal and external reviews of the code.

Global Code Audit Competition

As a researcher delving into this project, I’m thrilled to share that Euler Labs took an extra step in ensuring the security of their v2 codebase by hosting a global code audit competition, offering a total prize pool of $1.25 million. This initiative drew in over 600 participants, yet not a single high or medium-severity bug was uncovered. Such results underscore Euler Labs’ commitment to providing a robust and secure platform for its users.

Launch of Euler v2

With the imminent release of Euler v2, the development team is focusing on rebuilding trust in their platform and establishing a superior level of security within the Decentralized Finance (DeFi) sector. This update will provide users with greater freedom to design personalized lending markets and strategies. The robust security measures implemented and collaborations with industry experts underscore Euler’s dedication to preventing future attacks and safeguarding its users.

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2024-08-13 16:11