Euler Finance opens redemptions after hacker returns funds

On April 12, Ethereum-based noncustodial lending protocol Euler Finance announced that it would unfastened redemptions aft hackers returned the immense bulk of assets stolen successful a $197 cardinal flash indebtedness exploit past month. 

Euler says it volition repay each sub-account liabilities astatine the artifact the protocol was disabled connected March 13. The on-chain terms oracle, provided by either Uniswap oregon Chainlink, volition find the Ether (ETH) worth of assets and liabilities. The institution explained: 

"Markets that person atrocious indebtedness successful excess of reserves (a fewer long-tail markets that suffered oracle attacks) volition person the atrocious indebtedness proportionally distributed amongst depositors successful the market."

Euler has created a astute declaration containing funds for each exploited addresses, with an embedded Merkle Tree. In bid for redemptions to beryllium processed, users' addresses request to walk the Merkle impervious of validity and "an acceptance token that is individually computed for each account, and confirms that the relationship holder agrees with the presumption and conditions."

Magazine: Should crypto projects ever negociate with hackers? Probably

On April 4, the Euler Finance hacker returned astir each recoverable funds pursuing an ultimatum from task developers to either instrumentality 90% of stolen assets oregon look ineligible action. Following a little lapse successful communication, Euler launched a $1 cardinal bounty for accusation starring to the whereabouts of the stolen funds and the hacker's identity, which prompted the second to instrumentality assets. In addition, a idiosyncratic convinced the hacker that helium had mislaid his beingness savings owed to the exploit, which prompted the hacker to instrumentality 100 ETH to the individual, who subsequently donated 12 ETH to the Euler treasury.

— Euler Labs (@eulerfinance) April 12, 2023

A full of 95,556 ETH and 43 cardinal DAI U.S. dollar stablecoin person been recovered, with the magnitude being higher than the archetypal exploited full owed to the rising terms enactment of Ether wrong the past month. Additionally, 1,100 units of the exploited Ether were labeled irrecoverable aft the hacker sent the coins to cryptocurrency mixer Tornado Cash.

Related: Euler Finance attack: How it happened, and what tin beryllium learned