Is Euler Finance Safe?
Risk Grade: C (45/100)
Euler Finance is rated as elevated risk — multiple novel mechanisms and notable interaction risks.
Moderate risk — recovering from a $197M exploit with a redesigned system that introduces different risks
A lending protocol rebuilt from scratch after losing $197M in a 2023 hack (funds were later recovered). It holds $300M in deposits with a modular vault system that lets developers create custom lending markets. Its C+ grade reflects strong security spending against a proven track record of vulnerability.
TVL
$512M
Mechanisms
7
Interactions
5
Value Grade
C+
Key Risks for Euler Finance Users
This protocol was hacked for $197M in March 2023. The money was returned, but the incident proved the team's code can have critical flaws
Anyone can create a new lending vault and connect it to others. A single malicious or poorly built vault can drain money from legitimate ones it links to
Connected vaults can trigger chain-reaction liquidations. A crash in one vault forces selling that crashes the next, and so on down the line
Top Risk Factors
- •History of $197M flash loan exploit in March 2023 (funds recovered) demonstrates protocol-level vulnerability precedent
- •Modular Euler Vault Kit allows permissionless vault creation, expanding smart contract attack surface
- •Ethereum Vault Connector linking arbitrary ERC-4626 vaults introduces cross-vault contagion vectors
Risk Score Breakdown
Euler Finance's highest risk area is Track Record (12/15). Here's how each dimension contributes to the overall 45/100 score:
Read the Full Euler Finance Risk Report
This protocol has 2 collapse scenarios. 3 high-severity interaction risks identified. See the full mechanism classification, interaction matrix, and deep-dive recommendations.
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