Euler V2 is modular lending infrastructure for creating, connecting, and operating onchain credit markets.

Most lending systems start from one fixed market structure. Some prioritize broad collateral networks. Others prioritize isolated markets. Some rely on active governance or curator oversight. Others minimize change after launch.

Each model has tradeoffs. Broad collateral networks can improve capital efficiency, but they also connect risk across many assets. Isolated markets can keep risk contained, but they may limit borrower flexibility. Immutable markets reduce governance surface, but they cannot always adapt when market conditions or pricing assumptions change.

Euler V2 is designed around a different idea: lending markets should be built from configurable components.

With Euler V2, teams can define collateral relationships, oracle inputs, interest rate models, liquidation parameters, caps, hooks, governors, and curator roles at the vault or market level. That makes it possible to create markets with different risk profiles, operating models, and collateral structures without rebuilding the lending stack from scratch.

Modular Credit Markets

Euler V2 breaks lending infrastructure into reusable components.

The Euler Vault Kit lets builders create ERC-4626 lending vaults with configurable market parameters. The Ethereum Vault Connector lets vaults recognize selected collateral relationships, coordinate account logic, support sub-accounts, and batch multi-step actions.

Together, EVK and EVC make Euler more than a single lending market. They make it a system for creating many lending market structures from the same underlying primitives.

A market can be isolated around one asset. A curator can operate a set of vaults with defined parameters. A team can build a tokenized asset market with asset-specific rules. An application can connect selected collateral and borrow assets into a custom credit flow.

Hooks, operators, and controllers extend this further by letting builders add transaction-time checks, scoped permissions, and product-specific execution logic.

Built on Euler

Euler is already used to create lending products that do not fit neatly into older market categories.

A deployment can use hooks to define additional checks. It can use EVC to coordinate collateral across selected vaults. It can use EVK to configure vault-level parameters. It can expose a focused user experience while inheriting Euler’s underlying lending infrastructure.

This flexibility comes with responsibility. Modular systems require careful configuration, review, and monitoring. Builders and curators need to understand the vault parameters, oracle design, collateral relationships, hooks, governors, and liquidity conditions behind each market.

That is the tradeoff Euler makes explicit: more configuration, more design space, and more responsibility for the teams creating markets.

The Credit Layer for Programmable Finance

Euler V2 is built for a market structure where lending does not live in one monolithic application.

Markets, vaults, institutional credit flows, curated Earn vaults, embedded lending apps, and agent-driven workflows can all use the same core infrastructure.

As more products are built on Euler, the value of the system comes from shared primitives: vaults that follow common standards, account logic that can compose across markets, and execution paths that support more complex credit applications.

Euler V2 provides the infrastructure for that system.

For builders, curators, and integrators, the opportunity is direct: create lending markets and credit products with configurable collateral, pricing, liquidations, hooks, and vault relationships, without starting from a blank protocol design.