TL;DR

Euler v2 has been secured through a security process that cost around $4 million, one of the most expensive in DeFi.
The protocol employs a modular design to improve security and risk management, with 29 audits conducted by 12 security firms.
The largest code audit competition, with a $1.25 million prize pool, found no high- or medium-severity issues in the code.

Euler has invested an impressive amount of approximately $4 million in securing its new protocol, Euler v2, marking a milestone in security within the decentralized finance (DeFi) space.

This intensive focus on security has been undertaken in response to a $200 million exploit in March 2023, which underlined the need for a robust protection mechanism for the protocol.

Since its conception in 2022, Euler v2 has undergone an extensive development and review process, with a clear focus on safety and reliability.

The protocol has adopted a modular design, which is considered an effective solution to manage risks and improve security.

This design allows each module—including the Ethereum Vault Connector (EVC), the Euler Vault Kit (EVK), and the Euler Price Oracle (EPO) to perform specific tasks accurately and efficiently.

Modularity not only makes testing and auditing easier on each component, but also reduces single points of failure, contributing to greater security in the overall system.

The investment in security has allowed the hiring of a Senior Cybersecurity Engineer to oversee development processes, as well as collaboration with renowned security researchers.

The protocol has implemented fuzzing and formal verification testing suites, developed in collaboration with Enigma Dark and Certora.

These complementary methodologies have been crucial in identifying potential vulnerabilities and ensuring that key protocol invariants remain intact.

One of the highlights of the Euler v2 security process was the hosting of the largest code auditing competition to date, managed by Cantina.

With a prize pool of $1.25 million, the competition attracted more than 600 entrants from around the world.

Despite the massive scope of the audit, no high or medium severity issues were found in the code, reflecting the success of the security measures implemented.

Ongoing Commitment to Safety

Despite the positive results and thorough review, Euler Labs understands that safety is an ongoing process.

Audits and testing are just one part of a broader security approach that includes additional initiatives such as bug bounty programs and user interface penetration testing.

These efforts continue after the launch of the protocol to maintain a strong and proactive security posture.

Euler’s commitment to security goes beyond audits and code development; it also encompasses critical incident preparedness and continuous protocol monitoring.

Security in DeFi is a constant challenge, and therefore Euler v2 will continue to evolve and adapt to address new risks and ensure its long-term integrity.

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Filed under: News - @ August 13, 2024 3:29 pm