Charting the Path Forward: EraLend’s Response and Blueprint Following the Security Incident

3 min readAug 8, 2023

The past week has been a stern test for EraLend and the broader DeFi ecosystem, following the unsettling incident that we’ve all had to navigate. We recognize the difficulties this incident has imposed on our community, and we want to assure you that we will always stand by your side.

After thorough deliberation and assessment, the team has decided to respond proactively and chart a path forward. Here’s our future blueprint:

1. We’re set to redeploy EraLend using the secure version audited by PeckShield. The affected EraLend will transition into EraLend Classic. With the bedrock of the new EraLend, we’re re-engaging with our protocol development as initially planned. All aspects of product development, protocol operations, and business development will regain their previous momentum.

2. Our collaboration with partners to trace and reclaim the stolen funds will persist until full recovery, and we will relentlessly seek prosecution of the hacker.

3. We’ve onboarded SlowMist as our security consultant. They will support us in tracing the stolen assets and advising on security enhancements for our upcoming product upgrades. The revamped EraLend App will direct 100% of the protocol fee towards compensating victims.

4. Additionally, we’ll gradually introduce other compensatory sources, encompassing fundraising, prospective zkSync airdrops, and diversified platform income, should the retrieval of stolen funds face impediments.

New EraLend DApp

1. To maximize security, we’re delisting SyncSwap LP as collateral to circumvent possible oracle manipulation risks.

2. The entirety of collected platform fees will be redirected to the EraLend Classic USDC vault, ensuring liquidity for victim withdrawals.

EraLend Classic DApp

1. Effective from August 8th at 00:00 UTC, all lending and borrowing activities on EraLend Classic will be disabled.

2. Repayment and withdrawal functionalities will be operational until all users have exited the platform.

3. Starting from August 8th at 00:00 UTC, the USDC interest rate will witness a steep hike until all unaffected USDC borrowings have been cleared.

We anticipate a significant increase in the USDC borrow rate on EraLend Classic. Therefore, we strongly encourage unaffected USDC borrowers who have supplied ETH and SyncSwap LP to expedite their repayments and withdrawals, thereby bolstering liquidity for the victims.

Stellar Program

1. We remain committed to allotting 30% of the potential zkSync airdrop to those who have earned stellar points.

2. Weekly campaigns will shift to the new EraLend, implying that points can be earned through supplying or borrowing on the new platform. Post August 8th, UTC 00:00, EraLend Classic users will cease to accumulate points, with an exception for EraLend Classic USDC vault suppliers who will continue to accumulate points as compensation.

3. Any stellar points earned prior to these changes will remain intact.

We deeply appreciate your understanding and patience during this challenging time. We are unequivocally committed to maintaining the security of our platform and the trust of our community.

About EraLend

EraLend is pioneering the DeFi space as the first native decentralized lending protocol on zkSync. As a community-centric lending protocol, Eralend strives to evolve as the paramount liquidity hub within the zkSync ecosystem.

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Low Risk & Capital Efficient lending protocol on zkSync.