The current crypto-related bank closures, lawsuits, and collapses of crypto-related firms pose a different threat to the Euler protocol than they did in the past.

On Monday, a cyberattack of the decentralised lending system for small-cap companies using Ethereum resulted in the theft of digital assets worth around $200 million.

Euler flash loan attack

PeckShield, a blockchain security firm, tweeted on Monday that Euler should investigate some suspicious transactions on its platform.

According to the Euler transactions on etherscan, the hacker(s) fled with a number of cryptocurrencies, including 34.4 million USDC, 8.89 million DAI, 85,690 stETH, and 849 WBTC.

SlowMist, another blockchain security firm, stated in a tweet:

"The attacker deposited funds using flashloans, then leveraged them twice to trigger the liquidation logic, donating the funds to the reserve address and conducting a self-liquidation to collect any remaining assets."

Euler Labs, the startup behind the Euler Protocol, has stated that the exploit was successfully stopped and that it is now working to recover the stolen funds in collaboration with a number of firms, including Chainalysis.

Euler’s native token, EUL, down 52%

Following the disclosure of the exploit, the native token of Euler, EUL, fell by more than 52%.

The token was trading at $3.08 at press time, down from a high of $6.4826 on Monday morning. And, while the token price appears to have consolidated above $3, it is unclear whether the token will be able to maintain that level, given that it had dipped in its attempt to recover from the fall.