Euler V1
donation and liquidation

The reported mechanism

Euler’s retrospective describes the March 2023 V1 exploit as a sequence involving a donation and self-liquidation. The resulting liquidation bonus exceeded the loss from the donation. The same account describes the subsequent recovery effort.

How to approach the investigation

Separate temporary borrowing, position changes, the donation and liquidation. Compare the final asset changes with the protocol’s accounting. Recovery transfers belong in a later timeline, not in the original exploit transaction.