Flaws in Euler Finance lead to $197 Million Loss in Ethereum Transactions

03/13/2023 11:34 • Blockchain Buzz • 139 views

According to PeckShield’s analysis, Euler Finance was used in a series of transactions on Ethereum (hacker transaction address) due to its logical flaws in donation and liquidation, resulting in a loss of about 197 million dollars. Specifically, DonateToReserves needs to ensure that donors still have excess collateral, and liquidation needs to ensure the “correct” conversion rate from loans to mortgaged assets. In addition, two hackers participated in the attack: 0x5F2… 8B8c and 0xBcA… 7c5C.

Euler Finance was attacked due to logical flaws in its donation and liquidation

Analysis based on this information:

PeckShield, a blockchain security company, has released an analysis of the recent series of transactions on Ethereum involving Euler Finance, which resulted in a loss of approximately $197 million. According to the report, the flaws in Euler Finance’s donation and liquidation mechanisms made it vulnerable to hacking and exploitation by cyber attackers. The attackers took advantage of the logical flaws in the system to initiate unauthorized transactions that resulted in massive losses.

One of the primary issues identified by PeckShield was the DonateToReserves mechanism, which is intended to ensure that donors have excess collateral before allowing them to donate funds to the system. However, due to a flaw in this mechanism, the excess collateral was not checked, allowing the hackers to donate without meeting the required criteria. This resulted in a transfer of millions of dollars to the hackers’ accounts.

The second major issue identified by PeckShield was the liquidation mechanism, which is designed to manage the conversion rate from loans to mortgaged assets. However, due to a flaw in this mechanism, the hackers were able to manipulate the conversion rate and acquire assets at a much lower price. This resulted in the loss of additional funds, amounting to about $197 million in total.

PeckShield’s analysis also revealed that two hackers were involved in the attack, with addresses 0x5F2… 8B8c and 0xBcA… 7c5C. As per the report, these hackers were able to exploit the flaws in Euler Finance’s system and caused significant losses to the users of the platform.

In conclusion, the analysis conducted by PeckShield highlights the dangers of using blockchain technology without proper security measures in place. Cyber attackers are continually looking for loopholes and vulnerabilities that they can exploit to siphon off millions of dollars. It is essential that blockchain companies invest in robust security mechanisms that can prevent such attacks and ensure the integrity of their systems.

Keywords such as PeckShield, Ethereum, logical flaws, donation, liquidation, and hackers suggest that the article is discussing a security issue related to Euler Finance transactions. The report highlights the primary issues that caused the vulnerability of the system to hacking, leading to the loss of approximately $197 million. The article emphasizes the need for enhanced security measures to prevent such attacks and secure the integrity of blockchain-powered systems.

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Flaws in Euler Finance lead to $197 Million Loss in Ethereum Transactions

Euler Finance was attacked due to logical flaws in its donation and liquidation

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