Euler, an Ethereum-based lending protocol, is making a comeback after years of dormancy. The total value locked (TVL) of its v2, which was launched in August of this year, surged to a record $77.3 million on November 18, according to data from DefiLlama.
Euler’s TVL was at $14 million at the beginning of the month and less than $8 million on October 1. After gaining over 500% within the past month, the lending protocol has become one of the best-performing dapps on Ethereum and across the decentralized finance (DeFi) sector.
Two years ago in November, Euler had a record $677 million in its pools, being one of the largest dapps on Ethereum. The FTX collapse slashed Euler’s TVL by over 50%, though it rebounded to nearly $560 million by March 2023.
However, a hacking attack that drained $200 million worth of stETH, USDC, and other tokens has left the platform less appealing to DeFi investors. Even though the Russian hacker returned stolen funds, Euler couldn’t recover since then, with the TVL remaining below $100,000 for months.
The recent launch of v2 injected new life into the lending protocol. While the older version still has about $65,000, Euler v2 has a record $77 million, accounting for more than 99% of the platform’s TVL.
Before launching the new version, Euler invited hundreds of white hats for a code audit competition. The protocol was audited by 12 different cybersecurity firms.
Euler v2 is a credit layer that offers a development kit for deploying ERC-4626 vaults that enable users to build flexible vaults and manage lending risks. Users can select between risk-isolated lending pairs, cross-collateralized vault clusters, passive lending, or fixed-parameter vaults.
The largest tokens by TVL include USDC, WBTC, WETH, Staked USDe, wstETH, and cbBTC.
On November 16, Euler saw record daily inflows when nearly $14 million was deposited on the platform, with WBTC accounting for half of it.
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