Euler’s Head of Risk resigns saying ‘not much I can help them with’

The Head of Risk astatine Euler, Seraphim Czecher, announced his resignation, adding, “There is not overmuch I tin assistance them with astatine this stage.”

In a tweet posted connected April 20, helium alluded to a nonaccomplishment of religion successful the protocol pursuing a caller onslaught — Czecher said, considering the circumstances, resigning is the close happening to do.

“Given the authorities of the protocol aft the hack, I decided it’s the champion clip to determination on.”

Euler exploited for $197 million

On March 13, hackers executed respective flash indebtedness attacks connected the permissionless lending and borrowing level — extracting $197 cardinal successful DAI, USDC, WBTC, and stETH.

A flash indebtedness is the uncollateralized borrowing of cryptocurrency which requires speedy repayment. This DeFi trading relation is typically utilized by precocious traders looking to nett from arbitrage opportunities.

Flash indebtedness attacks typically impact the attacker borrowing ample sums of cryptocurrency via the flash loan, past utilizing the whale presumption bestowed by the funds to manipulate the marketplace successful their favor.

However, successful this case, according to Chainalysis, the attacker straight exploited a weakness successful Euler’s flash indebtedness protocol that balanced tokens representing collateral (eTokens) with tokens representing indebtedness (dTokens).

“The hack was made imaginable by a liquidity contented successful the DonateToReserve relation of the eToken. This relation was decently burning eTokens, but not dTokens, starring to an incorrect conversion of borrowed assets to collateralized assets.”

The attacker returns the funds

On April 4, aft palmy negotiations with the attacker, Euler announced it had recovered the funds — calling it “one the largest recoveries successful DeFi history.”

The enactment said this was made imaginable by the community-led sleuthing that yet outed the attacker’s identity.

“While the onslaught itself showed a level of sophistication it rapidly became wide the attacker had made a perchance life-changing mistake.”

The Euler assemblage overwhelmingly praised the efforts taken to reclaim the stolen funds — with galore expressing optimism astir the protocol’s future.

However, approaching 3 weeks aft this announcement, Czecher resigned from his presumption arsenic Head of Risk — adding that, earlier the hack, helium was already reasoning astir quitting.

However, post-hack, Czecher said feels helium has small to connection the protocol — which catalyzed his determination to leave.

“But it is evident that Euler volition request to rethink what they volition bash adjacent and for a maturation idiosyncratic similar maine determination isn’t overmuch to lend with.“

He intends to determination to different DeFi task but wished Euler bully luck.

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