Historical bad-debt events

Euler V2's assessment for RD-F-067 — scored green on the v1.7.0 rubric. The evidence below is the curator's reasoning for this score.

Evidence summary #

No V2 bad debt events confirmed. `rekt.incidents` in data cache is empty. The April 2026 KelpDAO rsETH exploit triggered precautionary market freezes at Euler; public reports indicate no significant bad debt accumulated due to swift action. V1 $197M exploit (2023) was on a now-deprecated, clean-slate-rewritten codebase. Bad debt socialization mechanism is present in EVK (default enabled; governor can disable) but has not been publicly triggered post-V2 launch.

Sources #

URL
https://coinedition.com/nine-defi-protocols-frozen-after-293-million-kelpdao-rseth-exploit/retrieved 2026-05-04
GitHub
https://github.com/euler-xyz/euler-vault-kit/blob/master/src/EVault/modules/Liquidation.solretrieved 2026-05-04
Internal
00-data-cache.json §sources.rekt.incidentsretrieved 2026-05-04

Methodology #

Count and sum (USD) the number of documented bad-debt events where the protocol socialized losses across depositors.

See the full factor methodology and distribution across all protocols →

rubric_version v1.7.0 protocol euler-v2 factor RD-F-067 score green collected_at 2026-05-04 19:56:06