Dublin, Ireland – Euler, the decentralized finance (DeFi) protocol, has announced that it will repay all sub-account liabilities at the block the protocol was disabled on March 13. This move comes after the protocol experienced a smart contract vulnerability that led to the loss of approximately $6 million worth of Ether (ETH) from its liquidity pool.
According to Euler, the on-chain price oracle, provided by either Uniswap or Chainlink, will determine the Ether (ETH) value of assets and liabilities. This means that the repayment will be based on the current market value of the assets and liabilities, ensuring that all parties receive fair compensation.
In a statement, Euler explained that the repayment process will be carried out in two phases. The first phase will involve the repayment of sub-account liabilities, while the second phase will involve the restoration of the liquidity pool. Euler has assured its users that it will continue to work towards restoring the liquidity pool as soon as possible.
The decision to repay all sub-account liabilities has been welcomed by the DeFi community, with many praising Euler for its commitment to transparency and fairness. This move is also expected to boost confidence in the DeFi space, which has been plagued by a series of high-profile hacks and security breaches.
However, some experts have raised concerns about the long-term implications of the Euler hack. They argue that the incident highlights the need for greater security measures in the DeFi space, particularly around smart contract auditing and testing.
Despite these concerns, Euler remains optimistic about the future of DeFi. The company has stated that it is committed to improving the security and reliability of its protocol, and that it will continue to work closely with the DeFi community to achieve this goal.
In conclusion, Euler’s decision to repay all sub-account liabilities is a positive development for the DeFi space. It demonstrates the company’s commitment to transparency and fairness, and is likely to boost confidence in the DeFi ecosystem. However, the incident also highlights the need for greater security measures in the DeFi space, and serves as a reminder of the risks involved in investing in these protocols.