Euler Labs has relaunched its DeFi lending protocol as Euler v2, nearly 18 months after a devastating flash loan attack that resulted in losses exceeding $200 million.

In response to the previous exploit, Euler v2 has undergone rigorous security audits, including 31 external audits conducted by 12 cybersecurity firms, ensuring robust safeguards are in place.

The protocol also implemented a public $1.25 million post-audit bug bounty, with no significant security issues reported, showcasing its commitment to safety.

Despite the earlier attack, Euler Finance successfully recovered all user assets, demonstrating resilience and a strong commitment to security.

Described as 'the credit layer of on-chain finance', Euler v2 was meticulously developed over a year, focusing on enhancing the flexibility of lending markets.

The new version allows builders to create customizable vaults tailored to various strategies and needs in decentralized finance, marking a significant evolution from its predecessor.

Euler v2 is characterized as a 'meta-lending protocol', enabling limitless applications for on-chain credit through customizable borrowing and lending vaults.

The vaults in Euler v2 are agnostic to governance and risk management methods, accommodating a variety of assets, including NFTs and tokenized real-world assets.

CEO Michael Bentley emphasized the adaptability of Euler v2, which is designed to create markets with varied risk parameters and collateral types.

Bentley anticipates significant growth in the crypto lending market over the next decade, positioning Euler v2 at the forefront of this expansion.

With its modular design, Euler v2 enhances the flexibility of lending markets, allowing for innovative approaches to borrowing and lending.

However, Bentley cautioned that users must conduct their own research regarding market risks associated with vaults, particularly ungoverned ones.