Euler commits $4 million to security, performs 29 code audits to protect v2

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Euler, a decentralized lending protocol, today announced the completion of an unparalleled security process for its v2 platform. Euler DAO has invested approximately $4 million in security measures, including hiring top security experts, rigorous testing methods, and extensive audits with 29 code audits from 12 different firms.

The security investment was a substantial amount compared to other DeFi projects, which typically allocate much smaller budgets in the low six figures, the company said. Efforts aim to make Euler v2 one of the most secure DeFi protocols ever built.

Euler said high-profile security experts were involved from the early stages of development to help identify and address potential vulnerabilities, including security engineers at Certora, ERC-4626 pioneer and Yield protocol developer Alberto Cuesta Cañada, as well as and Cmichel, StErMi, lead security engineers at Spearbit.

Once each module was completed, it was subjected to rigorous internal and external audits. Euler v2’s robust security framework includes a modular architecture that isolates potential vulnerabilities, enhancing auditability.

The audit process was complemented by advanced testing methodologies, including fuzz testing and formal verification, which were developed in collaboration with security experts.

The company noted that the protocol has undergone 29 audits by 12 leading firms. Euler’s multi-layered approach ensures that the core functions of the protocol remain secure under all conditions.

As part of its commitment to security, Euler hired Cantina to organize the largest code auditing competition ever held. The event attracted more than 600 participants globally, with researchers competing for a prize pool of $1.25 million.

Modular approach

Euler is set to launch its revamped version, Euler v2, in the second quarter of 2024, the team said in a press release. Euler v2 adopts a modular structure, introducing components such as the Euler Vault Kit (EVK) for customizable credit vaults and the Ethereum Vault Connector (EVC) for integration with ERC-4626 vaults.

Euler v2 aims to provide increased flexibility for users to create customized lending markets and strategies. The new the release is also trying to rebuild confidence after the $200 million exploit last March.

The team previously said it learned from the attack on the previous version, prioritizing flexibility and scalability in v2.

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