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The Head of Danger at Euler, Seraphim Czecher, introduced his resignation, including, “There’s not a lot I can assist them with at this stage.”
In a tweet posted on April 20, he alluded to a lack of religion within the protocol following a current assault — Czecher mentioned, contemplating the circumstances, resigning is the appropriate factor to do.
“Given the state of the protocol after the hack, I made a decision it’s the most effective time to maneuver on.”
Euler exploited for $197 million
On March 13, hackers executed a number of flash mortgage assaults on the permissionless lending and borrowing platform — extracting $197 million in DAI, USDC, WBTC, and stETH.
A flash mortgage is the uncollateralized borrowing of cryptocurrency which requires fast reimbursement. This DeFi buying and selling perform is often utilized by superior merchants trying to revenue from arbitrage alternatives.
Flash mortgage assaults usually contain the attacker borrowing massive sums of cryptocurrency by way of the flash mortgage, then utilizing the whale standing bestowed by the funds to govern the market of their favor.
Nevertheless, on this case, based on Chainalysis, the attacker immediately exploited a weak spot in Euler’s flash mortgage protocol that balanced tokens representing collateral (eTokens) with tokens representing debt (dTokens).
“The hack was made potential by a liquidity challenge within the DonateToReserve perform of the eToken. This perform was correctly burning eTokens, however not dTokens, resulting in an incorrect conversion of borrowed property to collateralized property.”
The attacker returns the funds
On April 4, after profitable negotiations with the attacker, Euler introduced it had recovered the funds — calling it “one the biggest recoveries in DeFi historical past.”
The group mentioned this was made potential by the community-led sleuthing that finally outed the attacker’s identification.
“Whereas the assault itself confirmed a degree of sophistication it rapidly grew to become clear the attacker had made a doubtlessly life-changing mistake.”
The Euler group overwhelmingly praised the efforts taken to reclaim the stolen funds — with many expressing optimism concerning the protocol’s future.
Nevertheless, approaching three weeks after this announcement, Czecher resigned from his place as Head of Danger — including that, earlier than the hack, he was already interested by quitting.
Nevertheless, post-hack, Czecher mentioned feels he has little to supply the protocol — which catalyzed his determination to go away.
“However it’s apparent that Euler might want to rethink what they may do subsequent and for a progress particular person like me there isn’t a lot to contribute with.“
He intends to maneuver to a different DeFi venture however wished Euler good luck.
