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IyaJJJ

Member

Registered: 2023-01-25

Posts: 2,082

Euler Finance: 10 audits are insufficient to prevent a hack

Euler Finance, an Ethereum-based lending protocol, was the victim of a deadly attack that resulted in the theft of over $175 million in assets.
Not only was this financially disastrous for the company, but it also had personal ramifications for its CEO, Michael Bentley.

Despite 10 audits in the two years before the incident, these measures do not appear to have prevented such a large breach.
It shows the limitations of smart contract auditing, whatever it has been and will continue to be. Audits are useful, but not enough if experienced and determined hackers want to take over a company.
The industry needs new ways to secure protocols, new risk management systems to protect assets from protocol eviction or instability to legitimate users.