The DeFi project Euler Finance was attacked by a Hacker, affecting multiple related protocols.

Euler Finance, as an innovative lending project in the Decentralized Finance (DeFi) space, recently encountered a serious security incident. On March 13, a Hacker attack led to the protocol losing approximately $200 million in funds. This incident not only affected Euler itself but also had a ripple effect on multiple related projects due to the composability nature of DeFi, causing a chain reaction.

As a foundational lending protocol, Euler's security should receive more attention. The losses caused by this attack are not limited to Euler itself, but also resulted in tens of millions of dollars in losses for other DeFi projects. Below are some affected projects and their loss situations:

1. Angle Protocol: This non-USD stablecoin project estimates a loss of approximately $17.61 million. Although there is some surplus, it is still insufficient for full compensation. The project team stated that they will compensate agEUR holders, liquidity providers, and hedge token holders proportionally.

2. Balancer: As a decentralized exchange, Balancer suffered a loss of approximately $11.9 million due to bbeUSD (Euler Boosted USD). Its innovative Boosted Pools feature became the main reason for this loss.

3. Idle Finance: This yield aggregator has incurred a loss of approximately $10.99 million across two yield strategies. Idle Finance previously deposited a large amount of funds into high-yield projects such as Euler.

4. Yield Protocol: As a fixed-rate lending protocol, its liquidity pool on Euler is affected, with expected losses not exceeding 1.5 million dollars.

5. Yearn: This yield aggregator indicates that, due to the strategies used by Idle and Angle, there is a total risk exposure of 1.38 million USD on yvUSDT and yvUSDC. Yearn promises that bad debts will be covered by its treasury.

6. Harvest: Similar to Yearn, its USDC, USDT, WETH and other liquidity pools have been affected by the Idle strategy, and the specific losses and handling plans have not yet been announced.

7. Inverse Finance: Its USD stablecoin DOLA experienced liquidity issues on a certain exchange, resulting in a loss of approximately $860,000.

8. SwissBorg: This cryptocurrency asset management platform incurred losses of some ETH and USDT in its Earn strategy, accounting for 2.27% and 29.52% of the subscribed funds, respectively. The company stated that it will cover all losses.

9. Opyn: The Zen Bull strategy of the decentralized options protocol Opyn may be affected by collateralized lending in Euler, and the specific amount of loss has not been disclosed.

10. Sherlock: As a security partner of Euler, Sherlock has passed a proposal to compensate Euler with $4.5 million and has executed a payout of $3.3 million.

11. Sense Finance: This fixed-rate lending protocol is indirectly affected by trading Idle and other fixed-income assets.

This incident once again highlights the importance and urgency of security issues in the DeFi ecosystem. The close connections between various projects are both an advantage of DeFi and a potential source of risk. In the future, DeFi projects need to pay more attention to security and risk management while pursuing innovation.