Euler’s TVL crashed to less than $100,000 after suffering a $197M exploit in early 2023.<\/p>\n
Euler Finance, a DeFi lending protocol wracked by a nine-figure exploit last year, is hoping to rise from the ashes with the launch of its v2 iteration.<\/p>\n
Euler deployed its v2 protocol on Feb. 22, describing the new platform as a modular lending protocol spanning two core components \u2014 the Euler Vault Connector (EVK) and Ethereum Vault Connector (EVC). The EVK allows developers to permissionlessly deploy bespoke lending vaults, while the EVC facilitates composability between vaults.<\/p>\n
\u201cTogether, the EVK and EVC provide the flexibility to build or recreate any type of pre-existing or future-state lending product inside the Euler ecosystem,\u201d Euler said. \u201cEVK empowers developers to build ERC-4626 vaults with unparalleled freedom, eliminating constraints on governance, oracles, and upgradability\u2026 EVC allows seamless connection of vaults within the Euler ecosystem.\u201d<\/p>\n
Euler added that the new protocol enables the creation of synthetic and real-world assets, nested vaults, and permissionless rewards mechanisms.<\/p>\n
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The launch of Euler v2 follows a devastating exploit<\/a>\u00a0suffered by the protocol in March 2023.<\/p>\n Data from DeFi Llama shows the total value locked (TVL) in Euler crashing from $264M on March 13 to just $10.4M the next day. Bugs in Euler\u2019s smart contracts allowed the hacker to make off with $136M worth of Lido\u2019s stETH token, $34M in USDC, $18.5M in Wrapped BTC, and $8.8M in DAI. The incident ranks as the\u00a0 seventh<\/a>-largest on-chain exploit at $197M, according to Rekt.<\/p>\n