Unmasking DeFi Risks: Insights from Euler Hack, USDC Depeg, and Terra Luna Crash

Marijo Radman
May 15, 2023
Reading time
4 min read

What dangers lie beneath the surface of Decentralized Finance(DeFi)?

Let's explore the recent Euler Hack, USDC  Depeg, and Terra Luna Crash incidents to unravel the hidden risks that can jeopardize your investments. How can we learn from these catastrophic events and develop strategies to protect our wealth? In this article, we delve into the causes and consequences of these crashes and provide a framework for mitigating risks using real-time monitoring, machine learning, and big data approaches.

Euler Hack

This exploit revealed the vulnerabilities in smart contracts, emphasizing the need for rigorous code audits, formal verification, and reliable development team track records. By demanding transparency and thorough assessments, investors can avoid projects with dubious security measures.

USDC Depeg

The USDC Depeg incident highlighted the liquidity risks inherent in stablecoins. Monitoring liquidity depth, stability, and market conditions is crucial to protect investments from sudden market shifts. Real-time monitoring enables proactive risk management and early detection of deviations from pegs.

Terra Luna Crash

The Terra Luna Crash underscored the systemic risks present in DeFi. Assessing network stability, transaction finality, and the impact of external events is vital. By incorporating these factors into risk assessment frameworks, investors can mitigate potential losses arising from market downturns and systemic vulnerabilities.

Possible Solutions

Real-time monitoring

Implementing real-time monitoring tools allows investors to track critical parameters such as liquidity, smart contract execution, and market conditions continuously. By staying vigilant and promptly identifying anomalies, investors can take necessary actions to mitigate risks and protect their investments.

Leveraging big data approaches and community collaboration

Big data analytics plays a crucial role in uncovering hidden risks. By analyzing the interconnectedness of DeFi components, liquidity concentration, and security foundations, investors can identify patterns, correlations, and emerging risks. Collaborating within the DeFi community to share data and insights foster resilience and collective protection against risks.


The recent Euler Hack, USDC Depeg, and Terra Luna Crash have exposed the perils inherent in DeFi.

To protect your investments:

☑️ demand transparency,

☑️ conduct thorough assessments,

☑️ and embrace a polarizing mindset.

Utilize real-time monitoring tools to stay informed and proactive in risk management.

Leverage big data analytics to uncover hidden risks and collaborate within the DeFi community to strengthen the ecosystem.

By incorporating these solutions, you can navigate the world of DeFi with greater confidence, safeguarding your wealth in this dynamic financial landscape.

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