Euler allocates $4 million for v2 protocol security, conducts 29 audits

DeFi lending protocol Euler has announced the completion of a comprehensive security process for its upcoming Euler v2 protocol, which involved a $4 million investment allocated by Euler DAO.

This substantial budget highlights the protocol’s commitment to security in the DeFi sector, particularly through its modular design, which aims to reduce risks and improve reliability.

Euler has designed v2 with lessons learned from a $200 million exploit that hit the protocol in March 2023. The protocol said its primary aim is to rebuild trust and set new standards for security in the DeFi sector through its extensive efforts to enhance security.

Audits

According to the Aug. 12 post, Euler v2’s modular architecture was designed to isolate risks and simplify the auditing process. Key components such as the Ethereum Vault Connector (EVC), Euler Vault Kit (EVK), and Euler Price Oracle (EPO) were created to perform specific functions with precision.

This approach facilitated both internal and external audits, with 29 separate code audits conducted by 12 top security firms to rigorously test and secure the platform.

By doing so, Euler aims to make its v2 platform one of the most secure in the DeFi space, demonstrating its dedication to protecting user assets and ensuring the platform’s reliability.

In addition to standard security practices, Euler Labs engaged with Certora and other experts during the design phase to address potential vulnerabilities. The protocol also utilized bespoke fuzz testing suites and formal verification methods to ensure code robustness.

Global review

A significant aspect of Euler’s security strategy was its decision to conduct a large-scale code audit competition managed by Cantina, with $1.25 million in rewards for identifying post-audit bugs.

The competition drew over 600 participants globally, none of whom discovered any high or medium-severity issues — a notable outcome for such a large-scale review.

Despite these extensive measures, Euler Labs continues to emphasize that security is an ongoing process. The protocol will also benefit from additional initiatives, such as bug bounties and user interface penetration tests, to maintain its security posture beyond the launch.