Euler Labs is offering a $1M bounty for information that leads to the arrest of a hacker who stole more than $200M from the Euler protocol on Monday. The hack is the sixth-largest in DeFi history. Despite the massive sum, the U.K.-based company offered the hacker an escape hatch: return 90% of the stolen funds by Thursday, and we’ll drop charges, it told the hacker via a message embedded in an Ethereum transaction. The Euler protocol had more than $500B in TVL prior to the exploit and was a poster child for DeFi’s composability, the ability to mix and match independent protocols to create top-to-bottom financial products. But Monday’s hack has put a spotlight on the other side of composability: the compounding risk that comes with integrating myriad financial software products. At least 14 protocols and their users were affected by the hack. Investors seem to have little faith that the money will be recovered. The price of Euler’s EUL governance token continued to drop Wednesday, hitting an all-time low of $2.30, according to data from CoinGecko. Euler isn’t the only company to have sought help from the authorities. Pablo Veyrat, the co-founder of Angle Labs, the company behind a euro-pegged stablecoin, told The Defiant his company was also in contact with law enforcement. The Angle protocol allows users to mint agEUR. Half of its TVL (over $17M) was lost in the Euler hack. “It put us in a bad situation to have lost this amount, so we’re doing everything we can to help the Euler team to recover the funds from the hack,” he said.
Full analysis : Euler Hack Shines Light on Promise – and Peril – of DeFi Composability.
