Euler Finance has released a detailed plan for the redemption of funds following the recent cyber attack, which resulted in the majority of funds held by the protocol being extracted and converted into ETH and DAI. A significant portion of the funds has been recovered, and the plan aims to distribute these funds to affected users.

On March 13, an attacker extracted the majority of funds held by Euler protocol and converted them into ETH and DAI. "Much of this has been recovered", Euler said.

"Recovered funds include all those returned to the Euler DAO Treasury address following negotiations, totaling 95,556.36059211764 ETH and 43,063,729.35 DAI. Unrecovered funds at this point include funds with potential sanctions issues sent by the attacker to Tornado Cash, totaling 1,100 ETH and those sent to an address owned by the Ronin attacker, totalling 100 ETH. Another 100 ETH were returned by the attacker directly to a user, who in turn returned 12 ETH to the Euler DAO Treasury (included above). The DAO Treasury address also holds 3,396,964 USDC and 1,007,321 DAI from Sherlock protocol insurance payouts." the firm wrote in a statement.

According to the plan, the redemption mechanism proposed by Euler involves the following key steps: