Donovan Choy

EigenLayer plans to <a href="https://blog.eigenfoundation.org/season-2-stakedrop/">distribute</a> 86 million EIGEN tokens, around 5.1% of its total supply, as part of its Season 2 “stakedrop” campaign. The distribution will be split across three groups:



<ul class="wp-block-list">
<li>Stakers and Operators: 70 million tokens are allocated to participants who staked and operated on the protocol.</li>



<li>Ecosystem Partners: AVSs, liquid staking protocols, and other key contributors will receive 10 million tokens.</li>



<li>Community Members: Early advocates and contributors will share 6 million tokens.</li>
</ul>



The airdrop is based on a snapshot taken on Aug. 15, 2024, with claims opening on Sept. 17, 2024.



<h2 class="wp-block-heading">Euler launches V2</h2>



The DeFi lending protocol Euler launched its V2 deployment on Wednesday.



Unlike V1, Euler V2 is being reimagined with a fundamentally modular design that “isolates risk, is easier to test, analyze, and audit, and reduces single points of failure,” according to an official <a href="https://www.euler.finance/blog/securing-euler">blog post</a>.



With the aid of the protocol’s “Euler Vault Kit”, builders can create ERC4626 vaults that are customizable in terms of risk management, governance settings, and asset collateral types.



These vaults can be interconnected using the &#8220;Ethereum Vault Connector&#8221; module, allowing deposits to be recognized across different vaults seamlessly.



Euler V2’s modular design allows vaults to interact, enabling diverse credit markets tailored to specific needs. This flexibility supports various lending strategies and asset management approaches, leading the team to brand it as a “meta-lending” protocol capable of unifying multiple lending and borrowing markets.



Back in March 2023, Euler was exploited in a $197 million flash loan attack. Following negotiations and pressure from the community and law enforcement, the attacker ultimately <a href="https://blockworks.co/news/euler-exploiter-returns-money">returned</a> the stolen funds.



In response, Euler V2 underwent a rigorous security process, with 29 audits conducted by 12 independent firms. The team has described this as &#8220;one of the most expensive and comprehensive security processes for any DeFi protocol to date,&#8221; according to their official blog.



<h2 class="wp-block-heading">One interesting stat:</h2>



<ul class="wp-block-list">
<li>Polygon successfully <a href="https://blockworks.co/news/polygons-biggest-little-upgrade-matic-to-pol">upgraded</a> its MATIC token to POL on Wednesday, as part of its move to Polygon 2.0. Three days into the process, it has converted 53.2% of the total supply, according to a dashboard from <a href="https://dune.com/queries/3262981/5461995">Dune Analytics</a>.</li>
</ul>



<h2 class="wp-block-heading">Also of note:</h2>



<ul class="wp-block-list">
<li>ApeChain, an L2 network affiliated with the Bored Ape Yacht Club, launched its &#8220;BluePrint&#8221; roadmap. The initiative aims to boost user engagement with a new ecosystem website, fiat-to-crypto onramps, and developer tools like the Reboot Protocol. The project seeks to expand ApeCoin&#8217;s utility beyond NFTs​.</li>



<li>Skyscanner has partnered with Travala to enable its 110 million monthly users to book over 2.2 million hotels using more than 100 cryptocurrencies. This integration marks the first time Skyscanner has incorporated crypto payments into its platform.</li>



<li>Celestia, a data availability-focused L1, has <a href="https://blog.celestia.org/roadmap/">announced</a> a plan to scale its block size to 1 gigabyte. The network said that it aims to boost data throughput and support high-performance applications like onchain gaming​.</li>
</ul>



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Web3 Watch: EigenLayer announces 86M token airdrop for Season 2

Katherine Ross

The head of risk for the developer of Euler Finance is stepping down, following a period of security vulnerabilities on the DeFi protocol.&nbsp;



Seraphim Czecker, head of risk at Euler Labs, announced his resignation via a tweet on Wednesday, April 19.&nbsp;



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">Big announcement: I have resigned from <a href="https://twitter.com/eulerfinance?ref_src=twsrc%5Etfw">@eulerfinance</a>. Details soon.&mdash; Seraphim (@MacroMate8) <a href="https://twitter.com/MacroMate8/status/1648681377435402240?ref_src=twsrc%5Etfw">April 19, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



According to his LinkedIn, Czecker was under contract at Euler. He had been with the team for over a year.



Prior to Euler, Czecker worked as an FX trader at Goldman Sachs. 



“Given the state of the protocol after the hack, I decided it’s the best time to move on. As the person who was responsible for growth at Euler, there is not much I can help them with at this stage,” Czecker told Blockworks. He added that he “will be moving on to another DeFi project” but did not provide details.



Michael Bentley, CEO of Euler, responded in the tweet thread from Czecker and said the resignation had been planned prior to the March <a href="https://blockworks.co/news/flash-loans-expose-growing-gap-in-defi-insurance">flash loan</a> attack on Euler, where the protocol lost $197 million.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">Was planned before the attack FYI&mdash; Michael Bentley (@euler_mab) <a href="https://twitter.com/euler_mab/status/1648713239016996864?ref_src=twsrc%5Etfw">April 19, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



In a statement to Blockworks, Bentley said, “We agreed to let him go before the attack to pursue an independent project with a former colleague. His departure got put on pause whilst people focussed on the attack response, but we spoke yesterday and agreed that now seems like a good time for him to move on.”



An attacker was able to exploit vulnerable code and “was able to liquidate these underwater accounts and profit from the liquidation bonuses,” according to a <a href="https://twitter.com/eulerfinance/status/1635431726364147712">tweet</a> from the company.



In late March, <a href="https://blockworks.co/news/euler-exploiter-returns-money">Euler succeeded in clawing back</a> $177 million after the hacker apologized and promised to return the stolen assets.



Last year, Euler <a href="https://blockworks.co/news/defi-protocol-euler-gets-32m-from-coinbase-ftx-to-diversify-dao">raised</a> $32 million in a funding round led by Haun Ventures. The round included FTX, Coinbase, and Uniswap Labs Ventures.



Michael Bodley contributed reporting.



Updated April 19, 2023 at 4:26 pm ET: Added comment from Seraphim Czecker.



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Start your day with top crypto insights from David Canellis and Katherine Ross. <a href="https://blockworks.co/newsletter/empire">Subscribe to the Empire newsletter</a>.



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