Blog

Euler V2: The Credit Layer for Programmable Finance

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

March 20, 2025

Euler V2 Is Live: Modular Lending Infrastructure for Onchain Credit

  Euler V2 is live. Euler V2 is modular lending infrastructure for creating, connecting, and operating onchain credit markets. It gives builders and curators the primitives to deploy ERC-4626 vaults, define market parameters, connect collateral relationships, and support different lending market structures through one shared architecture. The Power of Modularity Euler V2 is designed around modular vaults. Each vault can define its own asset, collateral relationships, oracle configuration,

September 04, 2024

Fragmented Liquidity: Debunking Myths

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

August 21, 2024

Securing Euler

Security was treated as a core requirement throughout the build of Euler V2. The vision for transitioning Euler into a modular protocol dates back to 2022. Since then, multiple code designs were explored as proof of concepts before work began on the final V2 implementation. Euler V2 has undergone a multi-layered security process. Roughly $4 million was allocated by Euler DAO to security work, covering dedicated security leadership, early researcher engagement, fuzz testing, formal verification

August 12, 2024

Capital-efficiency in lending protocols: escrowed collateral vs collateral rehypothecation

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

May 02, 2024

Fee Flow: Euler's Approach To Navigating Fee Accumulation

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

April 16, 2024

Introducing Euler V2: The Credit Layer for Programmable Finance

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 modular lending infrastructure for teams that want to create credit markets, vault products, and lending applications without rebuilding the core protocol stack from scratch. It gives builders the primitives to define how a market works: which assets are supported, how collateral is valued, how borrow

February 22, 2024

Exchange Rate Manipulation in ERC4626 Vaults

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

January 31, 2024

Introducing EVC: Composable Collateral for Euler Vaults

The Ethereum Vault Connector is open-source account infrastructure for ERC-4626 vaults. EVC lets selected vaults recognize one another as collateral, coordinate account checks, delegate scoped permissions, and batch multi-step actions. It is designed to make lending markets more composable without forcing every vault into one shared risk model. EVC makes Euler vaults composable. For builders, integrators, curators, and agents, EVC makes vault relationships programmable. Integrators use EVC

January 11, 2024