Introduction  On Dec-05-2024 10:28 PM +UTC Bitcoin experienced a flash crash, sending the price from $98,000 to $90,500 on Binance, $91,700 on Kraken, and similar levels on other exchanges. The price recovered to $96,000 within 4 minutes.  Despite the rapid recovery, the volatility was sufficient to drive 3 liquidations on Euler, all of which involved positions in which a user had used one form of wrapped bitcoin (LBTC or WBTC) to borrow cbBTC. Under normal circumstances, such positions would

Euler is officially back. We couldn’t be more excited for this new chapter and can’t wait for everyone to experience the much improved Euler v2. More importantly, we also want to acknowledge users of the protocol more effectively and further build the Euler ecosystem. Following discussions, the Euler Experience Points Initiative is officially live on the Dapp, with users earning points retroactively from day one of the announced launch. In total, there will be three seasons, each lasting four m

  Euler v2 is the credit layer of onchain finance. Modular by design, it empowers builders to create vaults that collateralise almost any kind of digital asset. This launch represents a pivotal moment in DeFi. With Euler v2, the possibilities for lending, borrowing, and building are endless. Following a year of meticulous development and rigorous security audits, Euler v2 is now live, accelerating the modularity movement in DeFi. Unlike its predecessor, Euler v1, which was tailored to a partic

Building on the success of our recent code competition with 602 researchers, we're thrilled to continue our collaboration with Cantina to further fortify Euler v2's contracts and launch a $1 million bug bounty programme, now live. Over the past year, we've worked closely with numerous security teams and individual researchers whose insights have helped us refine and strengthen both Euler v2’s contract design and security. The goal of this programme is to continue to work with the security commu

Liquidity begets more liquidity “The problem with Uniswap and Euler trying to be all, like, modular, is that liquidity will fragment if there’s loads of pools for each type of asset.” Here’s why this is a flawed perspective. Left to its own devices, liquidity typically begets more liquidity. Whenever there are redundant options for where liquidity can flow to, the least liquid options often suffer. This phenomenon plays out in nature just as much as it does in economics. It’s why you seldom

Security came first in every step of building Euler v2.  The vision for transitioning Euler into a modular protocol dates back to 2022. Since then, various code designs have been explored as proof of concepts long before work officially began on what will be launched in the very near future. As we head toward that milestone, we’re proud to share today that Euler v2 has undergone one of the most expensive and comprehensive security processes for any DeFi protocol to-date. Roughly $4m was alloca

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