How was Angle Protocol exposed to Euler?

The protocol’s Core module invests part of its funds in automated yield strategies.

More details on this can be found in our docs.

As per this governance vote, the protocol’s USDC and DAI reserves’ APR were automatically optimized by depositing funds between Euler, Compound and Aave.

At the time of the Euler hack, 17,614,940.03 USDC had been routed by the protocol on Euler.

You can find the smart contract that deposited the funds on Euler here.

How was the Angle Protocol “paused”?

The protocol has an emergency multisig called the guardian which can take conservatory measures, like pausing the protocols operations in case of unforeseen events.

In particular, the multisig paused the ability to:

• mint and burn agEUR from the Core Module
• deposit and withdraw Standard Liquidity Providers token from the Core module
• open and close perpetual positions in the Core module
• borrow more agEUR from the Borrowing module

What are the consequences for the Angle Protocol?

Prior to the Euler hack, the Angle Core module had a Total Value Locked (TVL) of approximately $36.1m (with 4.110m DAI, 24.99m USDC, 6.9m FRAX, 1.52 wETH, 203k FEI) and the protocol had holdings of different assets spread across various chains worth ~$1.0m.

17.3m agEUR had been minted through the Core module.

In addition, the protocol had:

• ~$11.8m in deposits from its Standard Liquidity Providers
• ~$71.0k in deposits from Hedging Agents
• a surplus of approximately $5.58m