Nearly 18 months after a major security breach, Euler Finance has unveiled its new credit layer. The decentralized finance protocol introduced Euler v2, a toolkit designed for the creation of ERC-4626 vaults.
New Credit Layer
According to CEO Michael Bentley, this new version supports various lending and risk management strategies. Euler v2 allows users to establish lending pairs that are either risk-isolated or cross-collateralized. Additionally, it supports both passive lending setups and those with fixed parameters.
Asset Support
This new system not only accommodates traditional digital assets but also non-fungible tokens (NFTs), real-world assets tokenized on the blockchain, and synthetically created assets. This broad asset support is part of Euler’s strategy to diversify investment and lending opportunities within its ecosystem.
Ensuring Security
Euler v2 has undergone extensive auditing. It boasts reviews from 12 different cybersecurity firms, amassing a total of 31 audit reports. “We have made significant investments in security to reassure our users and safeguard the platform,” Bentley remarked. Despite these precautions, Euler encourages users to personally assess the risks of individual vaults.
The launch follows an incident in March 2023, when Euler v1 suffered a flash loan attack resulting in a temporary loss of $195 million. The attacker exploited a loophole to manipulate market values but ultimately returned the funds. This incident highlighted the vulnerabilities and complexities of DeFi protocols. Euler Finance is positioning itself at the forefront of decentralized finance security and innovation. With the rollout of Euler v2, the protocol aims to set new standards in flexibility and safety for its users.
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