Today in DeFi - Euler Exploit Updates, Gearbox V3 Coming, Smart Contract Wallet, and More...

Euler Exploit Updates

Euler Labs @eulerfinance

An update on our work today to recover funds for Euler protocol users. Here are a few actions we took immediately: 1. Stopped the direct attack as soon as possible by helping disable the EToken module, which blocked deposits and the vulnerable donation function 2. Engaged TRM… https://t.co/6ZClE9uGoH

Euler was hacked for nearly $200M. due to a vulnerability that allowed the attacker to “create an unbacked token debt position by donating funds to the Euler’s reserves”.
As a result, “the attacker was able to liquidate these underwater accounts and profit from the liquidation bonuses.”

Affected Protocols

• Angle Protocol lost ~18.4m as Angle’s core module invests part of its funds in automated yield strategies, which includes depositing funds in Euler. The protocol has been paused with debt ceilings set to 0, and the Euler AMO has been wound down.

• Balancer lost 11.6m sent to Euler from the bbeUSD (Euler Boosted USD) pool. Balancer has paused and put into recovery mode bbeUSD and all pools containing bbeUSD.

• Idle DAO lost ~$5m in strategies that invest in Euler. The actual figures can change depending on the insurance coverage and any other plan undertaken by the Euler team.

• Yearn lost $1.38m as it has indirect exposure to Euler. Affected strategies include yvUSDT and yvUSDC which invests in Idle and Angle. Devs are working on the fix and the team assures that any bad debt remaining will be covered by the Yearn Treasury.

• Yield Protocol lost ~1.5m as the protocol’s mainnet liquidity pools hold Euler eTokens and Yield fyTokens. Yield has disabled the app and paused mainnet borrowing while investigating.

Gearbox Announced V3

Gearbox Protocol ⚙️🧰 @GearboxProtocol

The wait is over... The next step to become the base layer of Leverage in DeFi, the next step to Redefine Lending & Leverage. Gearbox V3 ⚙️🧰 @Balancer and @AuraFinance integrations, Tokenomics, Alpha Lend Pools with higher APYs, L2 capability and more: link.medium.com/tJhKtW2t8xb

link.medium.comGearbox V3 Teaser: reDEFIning Leverage and Lending.Gearbox Protocol. Too often we have been asked “Why that name?”,

Gearbox announced V3. The new version will have improvements on Asset Limits and Quota Interest, Minimum Viable Tokenomics (MVT) via staking, a bots & automation marketplace, and Balancer/Aura integrations. ETA for V3 is around the end of Q2.

dYdX to Reduce Trading Rewards

dYdX Foundation 🦔 @dydxfoundation

🗳️ The vote to reduce trading rewards by ~45% from 2.9M $DYDX to 1.6M $DYDX has passed! dydx.community/dashboard/prop… ✅ 25.7M $DYDX (66 addresses) ❌ 5.0M $DYDX (6 addresses)

dydx.communitydYdXdYdX Staking & Governance Dashboard

dydx passed the vote to reduce trading rewards by 45% and the proposal has been queued for execution. These changes will take effect at the start of the next epoch (Epoch 21), which starts on March 14, 15:00 UTC.

Upcoming: Filecoin Virtual Machine

Filecoin @Filecoin

As you may know, the deployment of the Filecoin Virtual Machine (#FVM) to Filecoin mainnet is upcoming on 🥧day, March 14! 🧵 incoming – here is all you need to know about the FVM 👇

Filecoin is launching Filecoin Virtual Machine (FVM) on March 14. The launch will allow Devs/projects to deploy EVM smart contracts on the Filecoin network, enabling concepts such as Data DAOs and programmable storage marketplaces.

Upcoming: Shapella on Goerli

timbeiko.eth @TimBeiko

Goerli Shapella Client Updates 👀 @lodestar_eth new version required: 1.5.1 ‼️ @go_ethereum new version recommended: 1.11.4❗️ @ethnimbus release out: 23.3.0 ✅ Announcement blog updated accordingly: blog.ethereum.org/2023/03/08/goe… 📣 Community Call Monday: github.com/ethereum/pm/is… 👋

timbeiko.eth @TimBeiko

🌃 Goerli is moving to Shapella 🌃 📆 Upgrade @ epoch 162304, (10:25:36 PM UTC on Mar. 14, 2023)📆 Client release versions, FAQs and community calls + watch parties are all linked below ⤵️ https://t.co/FmZuvZGBB4

The implementation of Shapella on Ethereum Goerli sets to go live around 10:25 pm UTC on March 14. Goerli is the last testnet to go through before Shanghai launches on the mainnet.

Critical Network Upgrade, Smart Contract Wallet, …