# Euler V1: every path that changes collateral belongs in the solvency model

Source: https://www.web3sec.news/blog/euler-donation-accounting
Updated: 2026-11-08

Assign owners and record supporting evidence in your team's own system.

- [ ] Classify functions by effects on collateral and debt.
- [ ] Specify account and system solvency invariants.
- [ ] Generate multi-step sequences near liquidation boundaries.
- [ ] Measure net effects across cooperating accounts.
- [ ] Define pause authority and restart evidence before an incident.

## References
- [BlockSec: technical Euler exploit analysis, 13 March 2023](https://blocksec.com/blog/defi-exploit-analysis-root-cause-euler-s-200m)
- [Euler Labs: historical exploit and recovery retrospective, 10 January 2024](https://www.euler.finance/blog/war-peace-behind-the-scenes-of-eulers-240m-exploit-recovery)