Euler Finance Exploited with Flash Loan Attack Resulting in Loss of $196 Million

Summary # On March 13, 2023, a flash loan attack targeted Euler Finance, a noncustodial lending platform on the Ethereum blockchain. The attack led to a loss of roughly $196 million in various cryptocurrencies, including Dai, USD Coin, Staked Ether, and Wrapped Bitcoin. The attacker took advantage of a weakness in Euler’s smart contract, specifically in a feature called “donateToReserves.” The attacker used multiple Ethereum addresses to exploit this weakness in the contract and took advantage of a problem in Euler’s system for liquidation. ...