The Euler Vault Kit, or EVK, is the framework for creating Euler lending vaults.
EVK lets builders deploy configurable ERC-4626 vaults with their own collateral rules, oracle configuration, interest rate model, borrow and supply caps, liquidation settings, governor, curator, and operating parameters.
It is one of the core primitives behind Euler V2. EVK creates the vault. The Ethereum Vault Connector defines how selected vaults and accounts can interact.
Why EVK Exists
Lending markets need different rules.
A stablecoin market does not need the same configuration as a long-tail asset market. A tokenized asset market may need different collateral rules, oracle inputs, caps, hooks, or operating roles. A curated market may need active parameter updates, while another market may need fixed rules after launch.
EVK gives builders a standard framework for creating those markets without rebuilding the lending protocol from scratch.
What EVK Does
EVK creates configurable lending vaults.
Each Euler vault is an ERC-4626 vault. That means it follows a standard vault interface while still allowing market-specific configuration.
Asset and Vault Configuration
Each vault has one underlying asset.
The vault defines how that asset can be supplied, borrowed, priced, collateralized, and liquidated. It can also define roles for operation, curation, governance, and fee collection.
Collateral Rules
A vault can define which assets are accepted as collateral through its configured relationships.
When used with EVC, a vault can recognize deposits in selected connected vaults as collateral. This lets builders create isolated markets, cross-collateralized markets, or curated collateral sets.
Oracle Configuration
A vault can use a defined oracle configuration for pricing.
Oracle design matters because price inputs affect collateral value, borrowing capacity, liquidation conditions, and account health.
Interest Rate Models
A vault can define its own interest rate model.
This lets markets set borrow-rate behavior around the asset, liquidity profile, and utilization dynamics of that vault.
Caps and Limits
A vault can use borrow caps, supply caps, and other limits.
Caps help control market size, exposure, and liquidity conditions for a specific vault.
Liquidation Settings
A vault can define liquidation parameters.
Euler V2 supports market-specific liquidation settings, so each vault can set parameters around the collateral and borrow risks it is designed to support.
Governance and Roles
A vault can have a governor and curator depending on its design.
The governor controls selected configuration paths. The curator or other roles may operate market parameters, allocation choices, or other actions depending on the product built around the vault.
Some vaults may be designed with active governance. Others may be designed with fixed parameters.
What EVK Makes Possible
EVK lets builders create many market types from the same framework.
Isolated Markets
Create a market around a specific asset with defined collateral, borrow limits, pricing, oracle, and liquidation rules.
Cross-Collateralized Markets
Create markets where selected vaults recognize one another as collateral through EVC.
Rehypothecated Lending Markets
Create vaults where supplied assets can be borrowed by other users, subject to the vault’s rules and market liquidity.
Escrowed Collateral Markets
Create vaults that hold collateral without allowing borrowing from that vault itself.
Curated Market Products
Create vaults or market structures where curators define parameters, caps, allocations, roles, and operating paths.
Institutional Markets
Create markets for tokenized assets, permissioned flows, or defined participant sets using vault-level rules and hooks where required.
Embedded Lending Applications
Build lending and borrowing flows into apps, wallets, dashboards, and product interfaces.
EVK and Risk Isolation
EVK helps make market rules explicit.
Each vault has its own parameters. That means risk can be configured around the asset and market design instead of inherited from one global pool.
A vault does not automatically share collateral relationships with every other vault. Those relationships are configured through EVC.
This lets builders create isolated markets where isolation matters, or connected markets where selected collateral relationships are useful.
EVK and EVC
EVK and EVC work together.
EVK creates the vault.
EVC connects selected vaults and accounts.
A builder can use EVK to define the market’s asset, pricing, caps, collateral rules, and liquidation settings. EVC then lets that vault recognize selected collateral, coordinate account checks, support sub-accounts, delegate scoped permissions, and batch execution paths.
Together, EVK and EVC form the core of Euler V2’s modular lending architecture.
The Short Version
EVK is the vault creation framework for Euler V2.
It lets builders deploy configurable ERC-4626 lending vaults with market-specific rules for collateral, pricing, caps, interest rates, liquidations, governance, and roles.
EVK defines the market. EVC defines how selected markets and accounts interact.
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