Euler Finance Initiates Three New Audits for Euler v2 Protocol

VII Finance, built on Euler V2, now allows users to borrow against their Uniswap V4 liquidity positions while continuing to earn both lending yield and swap fees. **Key Features:** - Use Uniswap V4 LP tokens as collateral - Maintain earning potential from swap fees - Continue receiving lending yield - Powered by Euler's infrastructure This integration represents a step forward in capital efficiency for DeFi users, enabling them to access liquidity without sacrificing their position's earning potential. The solution combines Euler V2's lending infrastructure with Uniswap V4's concentrated liquidity model. For liquidity providers seeking to maximize capital efficiency, this offers a practical way to unlock value from existing positions.

Euler Finance has taken immediate protective measures after Resolv reported unauthorized minting of USR tokens. **Actions Taken:** - RLP disabled as collateral in Arbitrum Euler Yield vault - Euler Earn USDC on Arbitrum stopped allocating to Euler Yield - Exposure isolated while investigation continues KyberSwap also responded by blocking all wallets linked to the exploit from platform activity. Both protocols are monitoring the situation and promise updates as information emerges. The incident highlights the ongoing security challenges in DeFi protocols.

Euler is conducting a comprehensive review following a recent security incident, with recovery efforts now in progress. **Key Points:** - Full incident review underway - Focus on strengthening system security at all controllable layers - Continued support for ecosystem curators and builders **Background Context:** This follows Euler's complete recovery from a March 2023 exploit, where the team successfully retrieved all affected funds. The protocol has since been working on a more robust and modular platform version. The team maintains its commitment to security improvements while supporting the broader Euler ecosystem during the recovery process.

**Recovery Claims Now Open** Users affected by the Stream/Elixir incident involving the Frontier Elixir USDT vault on Plasma can now file claims for recovery. **Key Details:** - Affected users will receive approximately **80% recovery** on their positions - Claims portal: [partnerclaims.elixir.xyz](http://partnerclaims.elixir.xyz) - **Limited time window** to submit claims - Frontier Elixir USDT vault contract: `0x3799251bD81925cfcCF2992F10Af27A4e62Bf3F7` **What to Do:** Visit the Elixir recovery portal to check eligibility and submit your claim. Review the official thread for complete information on the recovery process and requirements. Time-sensitive action required for affected vault users.

Depositors in the EulerDAO vault will receive pro-rata redemptions through the Elixir claim portal. The two largest depositors were: - Re7 USDT0 Core vault - Telos Surge Earn vault Depositors in these Earn vaults will receive their share of the redemption based on the amount allocated from their respective vaults into the EulerDAO vault. The redemption process will be handled through the [Elixir claim portal](https://app.euler.finance/earn/0x66bE42a0BdA425A8C3b3c2cF4F4Cb9EDfcAEd21d?network=plasma).