The Euler attack incident triggered a $200 million chain loss in the DeFi ecosystem, raising concerns about the balance between security and innovation.

After DeFi Summer, Euler Finance emerged as one of the few innovative DeFi projects. The project categorizes assets into different tiers based on risk, with each tier having unique borrowing permissions. However, on March 13, Euler Finance suffered a Hacker attack, resulting in a loss of approximately $200 million.

As a foundational lending protocol, the security of Euler is particularly important. Due to the composability of DeFi, this attack not only affected Euler itself but also impacted several other DeFi projects, resulting in tens of millions of dollars in cascading losses.

Angle Protocol is a decentralized project focused on non-USD stablecoins, primarily offering the euro stablecoin agEUR. Users can mint agEUR in two ways: first, by exchanging stablecoins such as USDC at a 1:1 ratio, and second, by using assets like WETH as over-collateral. To enhance yields, Angle employs a yield strategy similar to Yearn, depositing part of the funds into platforms like Euler. This attack resulted in a loss of approximately $17.61 million for Angle, and although there are some surpluses, they still cannot fully offset the losses.

A well-known DEX suffered a loss of 11.9 million USD due to bbeUSD (Euler Boosted USD). This DEX launched the Boosted Pools innovation at the end of 2021, aiming to improve LP yield and simplify user interaction with lending protocols. In this incident, multiple trading pairs using bbeUSD were affected, and LPs could only redeem part of their funds.

Idle Finance, as a yield aggregator, provides various yield strategies. Due to depositing a large amount of funds into platforms like Euler for high returns, Idle Finance suffered a loss of approximately $10.99 million in this attack.

The liquidity pool of a certain fixed-rate lending protocol is built on Euler, with expected losses not exceeding $1.5 million. The borrower's collateral is unaffected as it is stored in the protocol.

Several well-known yield aggregators and asset management platforms have also suffered losses due to the direct or indirect use of Euler's strategies. These include a yield aggregator that lost $1.38 million, and a crypto asset management platform that lost 1617.23 ETH and approximately $1.69 million USDT.

In addition, some fixed income and options protocols have also been affected. The Zen Bull strategy of a certain decentralized options protocol may suffer losses due to collateralized lending on Euler.

As a security partner of Euler, a certain DeFi security provider has proposed a compensation of 4.5 million dollars for Euler and executed a payout of 3.3 million dollars.

This incident highlights the potential risks of the close connections between various projects in the DeFi ecosystem. While composability brings innovation and efficiency to DeFi, it also increases systemic risk. In the future, DeFi projects may need to pay more attention to risk management and security measures while pursuing innovation and high returns.