From the Brink of Ruin: Euler’s Miraculous Comeback!

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What You Need to Know:

  • Euler almost folded after a devastating $200 million hack in March 2023.
  • Instead of vanishing, the team chose to rise from the ashes, rebuilding Euler from the ground up.
  • Now, it’s breaking records and setting new all-time highs, despite its rocky past.

Ah, the story of Euler Finance! A tale of glory and despair, of riches lost and miraculously regained. Imagine, if you will, a time not long ago – March 2023, to be precise – when Euler was brought to its knees by a $200 million hack. It seemed like the final curtain was coming down on this ambitious crypto venture. Who would’ve blamed them for simply walking away, leaving the wreckage behind? Yet, against all odds, they didn’t. No, my dear friends, they decided to rebuild it all, from scratch. Brave souls.

Fast-forward to today. Euler, with its many millions of crypto-dollars under management, is now setting new all-time highs. Of course, it’s still far from the titans of the lending world, such as Aave, which commands multibillions in assets. But, let’s not get lost in comparisons. Euler’s resurgence, from the ashes of a hack, is worth acknowledging. Do you hear the applause, or is it just me?

Michael Bentley, the valiant CEO of Euler Labs, who could have been sitting on a beach sipping something with an umbrella in it, instead chose to fight for the platform’s survival. He recalls the moment when critics, in their usual fashion, declared the end. “It would’ve been perfectly understandable to just let it go,” he said. But Bentley, being the man he is, had other plans. His team didn’t just salvage Euler; they reinvigorated it with a brand-new vision.

The new and improved Euler now promises a highly customizable borrowing experience, where users can mold their pools’ risk, yields, and assets as they see fit. This, as opposed to the old version, which Bentley describes as a “one-lending-market” kind of deal. You know, simple and boring. But apparently, people want more – they want flexibility! Who knew?

And let’s not get too carried away here. Euler’s comeback wasn’t guaranteed. There was that pesky little thing called the tarnished reputation, and who could forget that they missed most of the DeFi surge of 2024? They were busy tinkering away in pre-launch security reviews, not quite the recipe for success. But, alas, they emerged from their cave in September 2024 with V2 of Euler, nearly a year and a half later than expected. Talk about making a dramatic entrance.

To make a grand return, Euler didn’t exactly break the bank. No, Bentley’s team relied on a modest incentives budget – just “a few million” worth of EUL tokens to coax users back. Meanwhile, their competitors were throwing tens of millions of dollars at the problem. But Bentley insists that the real secret to their success was something more profound: “product market fit.” Ah, that timeless tale of good products finding their rightful home.

And here we are today. Despite Ethereum‘s ether continuing its meteoric rise, Euler persists. In fact, it’s one of only two lending protocols in the top 10 that has seen an increase in active loans over the last month. Now, that’s something to cheer about. It’s a wonder, isn’t it? Could it be that, even in the midst of a potential bear market, Euler’s growth remains steady? Bentley seems to think so, and who am I to argue with the man who pulled off this unlikely feat?

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2025-03-14 17:51