Euler Finance opened up redemptions for recovered funds to its users Wednesday at 02:00 UTC.
The majority of the assets that were taken in a $197 million flash loan attack last month were returned by hackers, according to an announcement made on April 12 by the Ethereum-based noncustodial lending protocol Euler Finance, which said it will open redemptions.
The protocol was turned off on March 13; according to Euler, it will pay back all sub-account liabilities at the block. The value of assets and liabilities in Ether (ETH) will be determined by the on-chain pricing oracle, which will be offered by either Uniswap or Chainlink. The business clarified:
“Markets that have bad debt in excess of reserves (a few long-tail markets that suffered oracle attacks) will have the bad debt proportionally distributed amongst depositors in the market.”
A smart contract with an inbuilt Merkle Tree and funds for all compromised addresses was made by Euler. In order for redemptions to be processed, users’ addresses need to pass the Merkle proof of validity and “an acceptance token that is individually computed for each account, and confirms that the account holder agrees with the terms and conditions.”
The project developers gave the Euler Finance hacker until April 4 to return 90% of the stolen assets or face legal action, and on that date, the hacker almost completely returned all recoverable monies.
After a temporary communication breakdown, Euler offered a $1 million reward for information leading to the location of the money that had been taken and the hacker’s name, which persuaded the latter to return the stolen property.
Additionally, a user persuaded the hacker that he had lost his life savings as a result of the exploit, leading the hacker to restore 100 ETH to the person, who then gave 12 ETH to the Euler treasury.
Due to the recent increase in Ether’s price, which has totaled 95,556 ETH and 43 million DAI U.S. dollar stablecoin, the amount recovered is larger than the initial amount that was abused.
Additionally, after the hacker delivered the money to cryptocurrency mixer Tornado Cash, 1,100 units of the exposed Ether were marked as being irrecoverable.
