Euler is modular lending infrastructure for onchain credit.

It lets markets, vaults, and credit products be created around specific assets, collateral rules, pricing models, liquidation settings, governance paths, and account relationships.

The core idea is simple: vaults define market rules, and Euler’s account infrastructure defines how selected vaults and accounts can interact.

That makes Euler a credit layer for programmable finance.

What Euler Is

Euler is infrastructure for creating and operating lending markets.

A lending market needs more than supply and borrow buttons. It needs rules for collateral, pricing, interest rates, caps, liquidations, roles, and account control. It also needs clear boundaries around which assets can interact with one another.

Euler V2 breaks those pieces into modular primitives.

The Euler Vault Kit creates configurable ERC-4626 lending vaults. The Ethereum Vault Connector coordinates collateral relationships, account checks, operators, sub-accounts, and batched execution across selected vaults.

Together, they let markets be built, connected, and operated without forcing every asset into one shared risk environment.

Euler Vault Kit

The Euler Vault Kit, or EVK, is the framework for creating Euler lending vaults.

Each vault is an ERC-4626 vault with its own configuration. A vault can define its underlying asset, oracle source, interest rate model, borrow and supply caps, liquidation settings, collateral rules, governor, curator, and other market parameters.

This gives builders a standard way to launch lending markets while still controlling the details that matter for the asset and use case.

A vault can be simple and isolated. It can also be part of a larger market design where selected vaults recognize one another as collateral through EVC.

Ethereum Vault Connector

The Ethereum Vault Connector, or EVC, is account infrastructure for ERC-4626 vaults.

EVC lets selected vaults recognize deposits in other vaults as collateral. It also supports sub-accounts, scoped operator permissions, batching, and account status checks.

This matters because lending markets often need coordination across multiple vaults. A user may supply one asset, borrow another, repay, rebalance, or move through several steps in one execution path. A builder may need to separate accounts, delegate specific permissions, or connect collateral relationships without building account infrastructure from scratch.

EVC provides that coordination layer.

It does not define the market’s risk model. Vaults and products define those rules. EVC defines how selected vaults and accounts can interact.

Risk Isolation on Euler

Each Euler vault is an ERC-4626 lending vault with its own asset, collateral rules, oracle configuration, interest rate model, borrow and supply caps, liquidation parameters, governor, and curator. That means a market can be created with risk parameters specific to the asset and the intended borrower or lender base.

Risk does not automatically flow across every Euler market.

A vault only recognizes another vault as collateral when that relationship is explicitly configured through the Ethereum Vault Connector. This lets builders create isolated markets, selected collateral clusters, or broader cross-collateralized designs without forcing every asset into one shared risk environment.

Market Types on Euler

Euler can support several market structures from the same primitives.

Isolated Markets

An isolated market scopes activity around a defined vault or vault relationship.

This structure is useful when the market needs clear boundaries around collateral, borrow exposure, pricing, and liquidation rules. Long-tail assets, new collateral types, and higher-risk markets often benefit from this type of separation.

Cross-Collateralized Markets

A cross-collateralized market lets selected vaults recognize one another as collateral.

EVC makes this explicit. Vaults do not automatically share risk across the whole system. The market design defines which collateral relationships exist.

This can support markets where several assets are meant to work together, such as stablecoin clusters, related staking assets, or curated collateral sets.

Rehypothecated Markets

A rehypothecated market lets supplied assets be borrowed by other users.

This can improve capital efficiency because deposits are not only used as collateral. They can also support borrowing activity and earn lending interest where there is market demand.

Rehypothecation introduces additional risk. Users and curators need to evaluate liquidity, utilization, borrow demand, caps, collateral rules, and liquidation parameters.

Escrowed Collateral Markets

An escrowed collateral vault can hold deposits that are used as collateral without allowing borrowing from that vault.

This is useful when an asset should support borrowing elsewhere, but should not itself be lent out. It can help create collateral utility while keeping the supplied asset from being rehypothecated.

Earn Vaults

Euler Earn vaults allocate one deposited asset across selected Euler markets or compatible ERC-4626 allocation targets.

Users interact with one vault position. Curators define the eligible markets, allocation caps, queues, roles, and rebalancing logic behind it.

Earn vaults turn a set of Euler markets into a single curated vault product.

Aave vs Morpho vs Euler

Aave, Morpho, and Euler each use a different market design.

Aave is known for shared-pool lending. Assets are listed into markets where users can supply and borrow against a broad set of approved collateral. This can create deep liquidity and a simple user experience, but risk is coordinated across the listed assets in that market.

Morpho is known for isolated lending markets. Morpho Blue markets are defined around a specific loan asset, collateral asset, oracle, interest rate model, and loan-to-value. This makes risk easier to isolate, but collateral and liquidity are separated market by market.

Euler uses modular lending vaults. Each vault defines its own rules, and selected vaults can recognize one another as collateral through EVC. This means Euler can support Aave-like cross-collateralized markets, Morpho-like isolated markets, and market structures that sit between the two.

The important distinction is configurability.

Euler does not require every asset to share one risk environment. It also does not limit every market to one isolated pair. Builders and curators can define the vaults, collateral relationships, caps, oracles, liquidation rules, governors, and operating roles that fit the market they want to create.

What Can Be Built on Euler

Euler can support many credit products from the same underlying primitives.

Credit Markets

Launch markets around specific assets with defined collateral, borrow limits, pricing, oracle, and liquidation rules.

Earn Vaults

Create ERC-4626 vaults that allocate one deposited asset across selected Euler markets or compatible allocation targets, with curator-defined caps, queues, and rebalancing logic.

Curated Products

Package selected markets into vaults, allocation products, or user-facing lending experiences with defined roles and operating paths.

Institutional Markets

Create open or permissioned lending markets with asset-specific collateral rules, hooks, operating roles, and market parameters.

Embedded Lending Applications

Integrate supply, borrow, repay, collateral, and account flows directly into apps, wallets, and product interfaces.

Agent Workflows

Use Euler’s structured data, SDKs, APIs, llms.txt, operators, sub-accounts, and batching to let software read market state and prepare scoped lending actions.

EulerSwap

Create AMM liquidity inside Euler vault positions, connecting swap execution with lending, collateral, and LP-specific pool design.

Integrating Euler Into Products

Euler is not only a destination app. It is infrastructure that other products can build on.

Apps, wallets, agents, institutional platforms, vault products, and market interfaces can integrate Euler primitives directly into their own user flows.

An integrator can use Euler to:

• create a lending market around a supported asset
• add borrowing or collateral flows to an application
• offer access to selected Earn vaults
• build a curator interface for market operation
• route users through supply, borrow, repay, and withdraw flows
• automate approved actions through scoped operators
• read market data through structured interfaces and docs

The product can own the interface while Euler provides the lending, collateral, vault, and account infrastructure underneath.

Security

Euler V2 was built through a multi-layered security process.

The protocol has undergone internal review, independent audits, fuzz testing, formal verification, public audit competitions, live Capture the Flag programs, monitoring, and bug bounty coverage.

Security work is also reflected in the architecture. Modular components are easier to specify, test, and review. Vault-level parameters make market assumptions more explicit. EVC makes collateral relationships and account interactions defined rather than implicit.

No security process removes protocol risk.

Users, curators, and integrators should evaluate vault parameters, oracle configuration, collateral relationships, liquidity, governance paths, and applicable market risks before interacting with any market.

Who Euler Is For

Euler serves several groups.

Users can access lending markets, borrowing markets, Earn vaults, and swap products through interfaces built on Euler.

Curators can launch and operate markets or vault products with defined parameters, roles, caps, queues, and update paths.

Builders can create credit products using EVK, EVC, hooks, SDKs, APIs, and documentation.

Institutions can structure markets around defined collateral, participant sets, operating roles, and asset-specific requirements.

Agents and automation systems can read market data, evaluate vault rules, and execute approved actions through scoped permissions and batched execution.

The Short Version

Euler is modular lending infrastructure.

EVK creates configurable ERC-4626 lending vaults.
EVC connects selected vaults and accounts.
Hooks, operators, sub-accounts, SDKs, APIs, and docs extend what can be built around them.

Euler can support isolated markets, cross-collateralized markets, rehypothecated markets, escrowed collateral, Earn vaults, embedded lending apps, institutional markets, agent workflows, and AMM liquidity inside vault positions.

The result is a credit layer for programmable finance: markets, vaults, and products with configurable collateral, pricing, liquidations, roles, and vault relationships.