DeFi lending platform Euler has announced the completion of a comprehensive security process for its upcoming Euler v2 protocol, which included a $4 million investment allocated by Euler DAO.

The significant budget reflects Euler's dedication to security within the decentralized finance (DeFi) space. This commitment is evident in the protocol's modular design, aimed at minimizing risks and enhancing reliability.

Euler has incorporated lessons learned from a $200 million exploit that occurred in March 2023. The protocol emphasizes its priority to rebuild trust and establish new security benchmarks within the DeFi sector through its extensive security enhancements.

Audits

As outlined in the Aug. 12 blog post , Euler v2's modular architecture is designed to isolate potential risks and simplify the auditing process. Key components, such as the Ethereum Vault Connector (EVC), Euler Vault Kit (EVK), and Euler Price Oracle (EPO), are dedicated to specific functions, ensuring accuracy.

This approach has facilitated both internal and external audits, with 29 separate code reviews conducted by 12 leading security firms to thoroughly test and secure the platform.

Through these efforts, Euler aims to position its v2 platform as one of the most secure in the DeFi ecosystem, demonstrating its commitment to safeguarding user assets and maintaining platform reliability.

Beyond standard security practices, Euler Labs collaborated with Certora and other experts during the design phase to address potential vulnerabilities. The protocol also employed custom fuzz testing suites and formal verification methods to ensure the robustness of its code.

Global review

A key part of Euler's security approach involved a large-scale code audit competition organized by Cantina, offering $1.25 million in rewards for finding post-audit bugs.

The competition attracted over 600 participants from around the world, but none uncovered any high or medium-severity vulnerabilities — a significant achievement for such a thorough review.

Despite these comprehensive efforts, Euler Labs emphasizes that security is an ongoing endeavor. The protocol will also benefit from additional initiatives, such as bug bounties and user interface penetration tests, to maintain its security posture beyond the launch.