Angle Protocol, the originator of the stablecoin agEURO, has announced that it was hit in the Euler Finance hack. A total of 17.6 million USDC had been deposited in the attacked application.
European bank collaterally affected by Euler Finance hack
Angle Protocol, which issues the euro-linked stablecoin agEUR, announced yesterday afternoon that it had been impacted by the nearly $197 million hack on Euler Finance:
Angle Protocol is impacted by the Euler exploit. The protocol had 17.6m USDC deposited on Euler.
The protocol has been paused, debt ceilings set to 0, and the Euler AMO has been wound down.
We are monitoring the situation and will communicate updates as soon as we have them.
– Angle (@AngleProtocol) March 13, 2023
Indeed, Angle Protocol had 17.6 million USDC on the attacked application, and it is not possible at this time to say whether and to what extent these funds have been impacted. A total of 34.4 million USDC was stolen from Euler Finance, and it is now unclear how much of this belongs to Angle.
In a frequently asked questions shared with their community, the teams behind the EFA explain in detail how they were affected. If some or all of the 17.6 million were lost, it would affect the liquidity providers in the Core Module, one of the facets of the protocol involved in issuing agEUR.
For the time being, the liquidity providers in the Core Module are therefore locked into their position, due to the emergency procedure. For those who have borrowed agEUR on Angle, however, they can pay it back safely and get their collateral back if they wish.
Euler Finance looks back at the details of the hack
For its part, Euler Finance gave more details on the measures that had been taken concerning its protocol, and the details of this hack. TRM Labs and Chainalysis have been engaged in the investigation, as well as “the wider Ethereum security community”:
An update on our work today to recover funds for Euler protocol users.
Here are a few actions we took immediately:
1. Stopped the direct attack as soon as possible by helping disable the EToken module, which blocked deposits and the vulnerable donation function
2. Engaged TRM…
– Euler Labs (@eulerfinance) March 14, 2023
Although Euler offered a $1 million bounty for anyone who discovered such a flaw, the vulnerability remained active for eight months before being exploited, since the protocol implemented an update to its contracts last summer.
The auditing company Omniscia has published a detailed analysis of the attack. By exploiting the flaw, the attacker has, in a very simplified way, created an artificial debt that he has liquidated himself, in order to drain some of the protocol’s reserves.
The funds are now being tracked, and while we have seen recently that it is possible to recover cryptocurrencies that have been stolen, this is not a general rule.
From Angle Protocol’s side, more information should be forthcoming as the investigation continues to explain how much of the agEUR has been affected. This will give investors more visibility into the health of the stablecoin.
The price of the stablecoin is down more than 7% as a result of the news, currently trading at just under $0.99 compared to the usual $1.07.
