Bb-e-usd Redemption Analytics for Euler Finance


  • Balancer OpCo is working on a tool to enable withdraws of non-Euler USD out of bb-e-usd soon.
    • The method has already been tested as PoC and was used to help TempleDAO recover their funds from bb-e-usd.
  • Check this analysis and see if it seems like a reasonable way to handle the redemption from Euler.

History and Context

A bb-e-usd pool was recently created on Balancer with the intention of providing a composable option for an interest bearing boosted pool component that earned yields from depositing on Euler. Pools were created pairing the following tokens with bb-e-usd and gauges were granted by governance:

  • rETH
  • wstETH
  • DOLA

Shortly after emissions started flowing on these gauges, Euler Finance was exploited and the protocol was frozen.

In the immediate aftermath pools containing bbeUSD were paused by the Emergency DAO. As a result of the pause, and the frozen nature of bb-e-usd. It has been difficult for users to withdraw non-frozen funds from the affected pool.

It is important to note that Balancer is an immutable AMM. New pool factories include a 3 month window in which the pools can be paused.

All of the pools in question had been launched on factories deployed recently so in this case a pause was possible. The pause will cease to function and the pools will enter Recovery Mode after the pause window ends. Read more about limited pausing here.

Recovery Efforts to date

Following the exploit, a number of weeks of hacker tracking/whispering commenced. As a result, a vast majority of the stolen funds were returned to Euler. Earlier this week, Euler distributed these funds to EOAs and Multi-sigs who had deposits in the protocol through a new Redemption Page.

Once the distribution was settled, the Balancer Maxis worked with the TempleDAO team to build a Proof of Concept and eventually extract the non-frozen funds from their bb-e-usd position.

A user interface is being developed by the frontend team at OpCo to enable users to easily execute this same process with a single click action.

Finally, Balancer Labs has developed this analysis of the location of frozen Euler e-tokens on the block when the Balancer Pools were paused by the EmergencyDAO.

Next Steps

This forum post and this analysis will be announced to the following community hubs: Balancer Twitter, Balancer Discord .
Discussions and disputes are invited as comments to this post.

If the results of the analysis remain undisputed for a couple of days, it is suggested that this distribution be considered by Euler to distribute funds due to the vault, and that these payments are made via the already operational Euler Redemption System.

If there are any disputes, the Data Team at Balancer Labs has offered more resources to provide further analysis to resolve them.


I polished up the Proof of Concept used to extract the remaining value out of BPTs for Temple and the Balancer Fee Collector. It can be reviewed here:

Get in touch if you have any questions.

The value obtained by redeeming BPTs using this PoC or the User Interface that will follow is additional to any redemption provided by Euler.

Euler has informed us that they have updated their tree with the balancer data. You should be able to claim your redemption funds at

OpCo is still working on the UI to redeem the remaining funds stuck inside the pool. All simulations of this so far have rendered around 33 cents per BPT in USDC, USDT and DAI.