DeFi lending protocol Euler has recently completed a thorough security process for its upcoming Euler v2 protocol, with a $4 million investment from Euler DAO. The protocol aims to prioritize security in the DeFi sector, particularly through its modular design that aims to reduce risks and enhance reliability. Lessons from a $200 million exploit in March 2023 have been incorporated into Euler v2 to rebuild trust and set new security standards in the DeFi space.
Euler v2’s modular architecture, including components like the Ethereum Vault Connector, Euler Vault Kit, and Euler Price Oracle, has been designed to isolate risks and simplify the auditing process. The protocol underwent 29 different code audits conducted by 12 top security firms to rigorously test and secure the platform, making it one of the most secure platforms in the DeFi space. Euler Labs engaged with Certora and other experts during the design phase to address potential vulnerabilities and utilized bespoke testing suites and formal verification methods to ensure code robustness.
In an effort to further enhance security, Euler conducted a code audit competition managed by Cantina, offering $1.25 million in rewards for identifying post-audit bugs. The competition attracted over 600 participants globally, none of whom discovered any high or medium-severity issues. Despite these extensive security measures, Euler Labs continues to emphasize that security is an ongoing process and will implement additional initiatives such as bug bounties and user interface penetration tests to maintain its security posture beyond the launch of Euler v2.
Overall, Euler’s commitment to security in the DeFi sector is evident through its substantial investment in security measures for Euler v2. The protocol aims to rebuild trust and set new standards for security through its modular design, extensive auditing process, and ongoing security initiatives. With lessons learned from past exploits and a dedication to protecting user assets, Euler v2 is poised to be one of the most secure platforms in the DeFi space, demonstrating Euler’s dedication to security and reliability in the decentralized finance sector.
