Security specialists said a flash-loan assault against Euler Finance resulted in a loss of $197 million.
The flash-loan assault on the lending protocol Euler Finance resulted in a $197 million loss, according to security companies BlockSec and PeckShield.
The assault happened at 4:50 a.m. Eastern Standard Time, enabling the offender to borrow significant sums of money and drain them from the protocol. BlockSec said in a paper that they looted $136 million in staked ether (stETH), $34 million of USDC, $19 million of wrapped bitcoin (WBTC), and $8.7 million of DAI.
It is unknown how the assault was executed or who was responsible. The team at Euler Finance is collaborating with security specialists and law enforcement and will provide further details later.
Flash loans are a popular instrument for attackers seeking to exploit weaknesses in DeFi protocols since they enable borrowers to get vast sums of money without collateral. Yet, they are associated with a high risk since the borrower must return the loan quickly.
Euler is a non-custodial system that enables users to lend and borrow crypto assets. A decentralized autonomous organization administers it (DAO). In June 2022, it secured $32 million in a funding round headed by Haun Ventures. The assault decreased the price of the Euler (EUL) token by more than 45 percent, from $6.10 to $3.30.
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