Euler Finance rebuilt after its 2023 $200M exploit into a permissionless isolated lending framework. Modern architecture, comprehensive audits, and full recovery of stolen funds via the attacker's eventual return. Now growing steadily as Euler v2.
What Euler v2 is
Euler v2 (2024) is a fully re-architected version of the original Euler protocol. Key changes: fully isolated lending markets, formal verification of core contracts, and a modular Ethereum Vault Connector (EVC) architecture that lets anyone build custom lending vaults.
The 2023 exploit and recovery
In March 2023, Euler v1 was drained of $200M via a donation-attack vulnerability. Remarkably, the attacker returned nearly all funds after negotiation. Euler used the intervening year to fully rebuild v2 with lessons learned.
Verdict
Euler v2 is a serious rebuild. Formal verification, modular architecture, and the team's handling of the 2023 exploit make Euler v2 one of the more architecturally sound lending protocols in DeFi.