By Norah ODonnell
Euler Finance has announced plans to activate a redemption platform to refund customers their stolen assets. The lending company suffered a major loss on March 13 when bad actors launched a flash loan attack on the platform heisting crypto assets worth $197 million.
The hack disrupted the operation of the lending company and exposed the customers to financial crisis. The attempt to restore the stolen assets prompted the Euler team to develop effective strategies, such as rewards and adoption of flexible litigation process.
Conditions to Redeem Assets on the Euler Platform
After days of pursuing the hackers, the Euler recovery strategies proved fruitful following a successful engagement with the hackers. They agreed to return the funds, and the Euler team confirmed the recipient of 90% of the stolen assets.
Subsequently, the quest to restore customer confidence has triggered the lending platform to explore ways to refund the affected customers. On April 12, the Euler team announced plans to process funds for all the hack victims.
The team will prioritize settling the unpaid sub-account liabilities incurred before the lending protocol suspends its operation. The report stated that refunds tasks the Euler team to examine the current market value for Ether (ETH) by analyzing the on-chain price listed by Uniswap and Chainlink.
In the meantime, the Euler technical team has deployed smart contracts with a Merkle tree design on its decentralized finance platform. The group gathered and recorded crucial information on all the affected addresses onto the Euler smart contracts.
The team has also developed a redemption procedure that includes a verification process. At this stage, Merkle technology will examine the validity of the redemption and assess vital customer information.
According to the Euler redemption terms and conditions, the Merkle system will determine whether the information the user provides matches the data on the addresses. Once the verification is executed, users can proceed with the primary stages and seamlessly redeem their assets.
The proposed refunds will enable the Euler customer to regain their financial health.
Strategies Applied By Euler to Restore Customers’ Confidence
A recent statement from Nexus Mutual, a renowned crypto insurance company, revealed that the Euler exploit exposed most of its policyholders to huge losses. They stated that the investors affected by the Euler attack pursued the insurance company for financial support.
Reportedly, the Nexus team extended its insurance services such as covers to more than 5 of Euler’s investors. They stated that the insurance company managed to cover losses incurred by the five clients worth $2.4 million.
An observation made by the affected customers revealed that the assets available on the Euler platform amount to $133 million, which will be reimbursed to 457 customers. Surprisingly, the Nexus report stated that four insured clients settled $380000 while the other two have yet to commit.
The remaining two investors expect to receive more than $400000 from Euler. After monitoring the Euler redemption platform, the Nexus team noted that the two clients had executed no transaction.
Initially, the two investors had pledged to settle Nexus’s outstanding balances once they received their lost assets.
In a separate report, the Nexus head of communications BraveNewDeFi argued that the Euler redemption platform was opened on April 12. BraveNewDeFi noted that most Nexus policyholders still needed to redeem their assets from the platform.
He stated that only one client had transacted $380000 from the Euler redemption portal to the Nexus decentralized autonomous organization (DAO).
The team has vowed to make the follow-up to avoid losing their assets in the Euler exploit scandal. Furthermore, the insurance team has engaged the Euler team to support them in recovering their money.
The Nexus team requested the lending platform to remind the policyholders to repay their balances. The Euler team is expected to update the portal to notify the Nexus customers to honor their pledges.
The insurance company announced plans to proceed with legal action against their policyholders who will fail to make their repayments. The report stated that Nexus would hire legal practitioners to assist them in recovering their assets from the Euler customers.