Euler suffers a $200 million attack, multiple DeFi projects experience chain losses.

Euler Finance, as one of the innovative projects after DeFi Summer, is unique in that it categorizes assets into different tiers based on risk, with each tier having specific lending permissions. However, on March 13, the project suffered a Hacker attack, resulting in a loss of approximately $200 million.

As a foundational lending protocol, the security of Euler is particularly important. Due to the composability characteristic of DeFi, this attack not only affected Euler itself but also impacted several other DeFi projects, resulting in tens of millions of dollars in collateral damage.

Angle Protocol is a decentralized non-USD stablecoin project that primarily provides the Euro stablecoin agEUR. Users can mint agEUR in two ways: first, by exchanging stablecoins like USDC on a 1:1 basis, and second, by over-collateralized borrowing with assets like WETH. To enhance project returns, Angle employs a yield strategy similar to Yearn, utilizing collateral such as USDC and DAI to generate yields, with Euler being one of the main destinations for the funds. This attack is expected to result in a loss of $17.61 million for Angle; although there are some surplus funds, they are still insufficient for full compensation.

A certain DEX has incurred a loss of $11.9 million due to bbeUSD (Euler Boosted USD). The Boosted Pools launched by the platform at the end of 2021 aim to enhance LP yield and simplify user interactions with lending protocols. In the Boosted Euler USD pool, a portion of the USDT, USDC, and DAI deposited by users is placed into Euler, and users receive bbeUSD tokens in return. Although this mechanism promotes the use of bbeUSD, it also exacerbates the scale of this loss.

Idle Finance, as a yield aggregator, offers three strategies: Best Yield, Senior Tranches, and Junior Tranches. By choosing high-yield strategies, Euler has become an important partner for Idle. In this event, Idle Finance has a total risk exposure of approximately $10.99 million to Euler in the Best Yield Vault and Yield Tranches.

Yield Protocol is a fixed-rate lending protocol, with part of its liquidity pool built on Euler. It is expected that the funds deposited in Euler were less than $1.5 million before the attack occurred. Notably, the collateral of the borrowers remained unaffected due to being stored in Yield Protocol.

A certain yield aggregator stated that its yvUSDT and yvUSDC have a total risk exposure of $1.38 million to Euler due to the strategies employed by Idle and Angle. The resulting bad debts will be borne by the project’s Treasury.

Another similar yield aggregation platform pointed out that its USDC, USDT, and WETH Vaults were affected by the use of Idle, but has not yet announced a specific handling plan.

The USD stablecoin DOLA from Inverse Finance has seen its liquidity on a certain DEX affected due to the DOLA/bbeUSD trading pair. Despite taking proactive measures to mitigate losses, DOLA Fed still incurred a loss of $860,000.

SwissBorg is a regulated crypto asset management platform. Its Earn strategy has incurred losses of 1617.23 ETH and approximately 1.69 million USDT in ETH and USDT respectively, accounting for 2.27% and 29.52% of the subscription funds. SwissBorg commits to covering all losses.

As a decentralized options protocol, Opyn’s Zen Bull strategy may be compromised due to collateral lending on Euler. The specific amount of loss and the handling plan have not yet been announced.

Sherlock is a DeFi security service provider that previously reached a collaboration of 10 million USD with Euler. After Euler was attacked, Sherlock voted to compensate Euler with 4.5 million USD and executed a compensation of 3.3 million USD.

Sense Finance, as a fixed-rate lending protocol, is indirectly affected by fixed-income assets such as Idle.