Introduction  Over-collateralisation is a powerful mechanism for allowing peer-to-peer (P2P) or peer-to-pool (P2P) lending in decentralised finance (DeFi). Lenders require borrowers to deposit more value in collateral than they take out in loans. This requirement helps ensure that there is always an incentive for borrowers to repay their loans. Where and how collateral is deposited can have a major impact on the capital efficiency of lending protocols. There are two main approaches protocols us

TL;DR: * Euler Vault Kit (EVK) and Euler Price Oracle code is made public today. * Auditors encouraged to begin familiarising themselves with the code ahead of $1.25m record-breaking Cantina code audit contest begins on May 20th. * Builders and integrators can begin learning how to create and connect together their own custom lending and borrowing vaults, or their own synthetic assets. * For further questions or inquiries about integrating with Euler, reach out to us on Discord or Telegram

Traditionally in DeFi, protocols have commonly directed accumulated fees straight into their treasury. However, this approach has revealed itself to be suboptimal, requiring active treasury management to consolidate all assets into a single currency. The conversion of fees into a single asset has been riddled with challenges, leading to issues such as MEV extraction, dependency on oracle services, and the necessity for ongoing oversight. This blog aims to explain Fee Flow, Euler’s approach to

We're excited to announce the largest security competition done in history with $1,250,000 in rewards up for grabs. The Euler v2 Code Audit Competition will be conducted in collaboration with Cantina, an industry-leading security marketplace incubated by Spearbit. As the largest audit competition in crypto history, this marks a significant milestone ahead of the upcoming launch of Euler v2 in the Ethereum mainnet. In the development of Euler V2, we are elevating the standards in every aspect wh

It’s official. Euler is relaunching! Today, we’re excited to unveil Euler v2— The Modular Lending Platform. Check out the Lite paper or read on below to find out more. Introduction Euler v2 is a modular lending platform that will have two main components at launch: 1) the Euler Vault Kit (EVK), which empowers builders to deploy and chain together their own customised lending vaults in a permissionless manner; and 2) the Ethereum Vault Connector (EVC), a powerful, immutable, primitive which g

Introduction Suppose a lending protocol allows borrowers to use USDC as collateral to take out loans of ETH. What is the maximum amount of ETH that can be borrowed with the USDC collateral? Asked in terms of protocol risk management, what is the correct loan-to-value (LTV) ratio the protocol should adopt for such a trade? A straightforward answer is that it is the LTV that maximises the risk/reward payoff for lenders. Unfortunately, knowing what this is at any given point in time is practical

The Euler Labs team is excited to announce a custom-built governance portal at https://gov.euler.finance to improve the governance experience for the Euler community. The Euler Governance Platform (EGP) is tailored to bridge the gap between the community and decision-making, combining the functionalities of existing apps such as Tally and Snapshot into a singular, user-friendly interface. The Euler Governance Platform stands as a testament to our commitment to simplifying governance, making it

Attack Vectors, Manipulation Mechanisms, and Mitigations Introduction The ERC4626 Tokenized Vault standard has exploded in popularity. Many protocols are racing to implement compatible contracts, hoping to become integrated with yield aggregators and to capture significant shares of trading volume and user share. However, as with any new technology, there are dangers that are not immediately apparent. Shortly after its release, it was identified that naive ERC4626 vaults are vulnerable to fi

Today marks a significant day for Euler Labs, as we proudly introduce The Ethereum Vault Connector, a public good, open-source primitive designed to make lending markets more customizable and interconnected, powering the creation of novel use cases. DeFi is Dead, Long live DeFi.  DeFi emerged as the answer to traditional finance's shortcomings — limited choices, opacity, and centralised control. For DeFi to continue fulfilling its mission, we believe our efforts must extend beyond just dece