ERC-4626 virtual-share offset (OZ ≥4.9)
Euler V2's assessment for RD-F-074 — scored green on the v1.7.0 rubric. The evidence below is the curator's reasoning for this score.
Evidence summary #
EVK implements a native virtual deposit mechanism as inflation guard. Formula from whitepaper: exchangeRate = (cash + totalBorrows + VIRTUAL_DEPOSIT) / (totalShares + VIRTUAL_DEPOSIT). This is functionally equivalent to OZ >=4.9 virtual-share offset. Euler's own blog post on exchange rate manipulation in ERC-4626 vaults confirms the mechanism is live and was specifically designed to prevent first-depositor inflation. Cantina 2025 security assessment found no high/medium severity issues in these surfaces. Green: confirmed protection, though exact VIRTUAL_DEPOSIT constant value not extracted (medium confidence).
Sources #
- Docshttps://github.com/euler-xyz/euler-vault-kit/blob/master/docs/whitepaper.mdretrieved 2026-05-04
- https://www.euler.finance/blog/exchange-rate-manipulation-in-erc4626-vaultsretrieved 2026-05-04
- https://cantina.xyz/blog/cantina-euler-2025-modular-lending-securityretrieved 2026-05-04
Methodology #
Determine whether ERC-4626 vaults use OpenZeppelin ≥4.9 virtual-share offset pattern to prevent first-depositor share-inflation.
See the full factor methodology and distribution across all protocols →