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About Euler
Euler Finance is a modular lending protocol that enables the creation of customizable credit markets. Originally launched in 2021, Euler V2 represents a complete rebuild following extensive security work after a 2023 exploit. The new version introduces unprecedented flexibility in DeFi lending.
Euler V2 consists of two core components: the Euler Vault Kit (EVK) for deploying custom lending vaults with configurable parameters, and the Ethereum Vault Connector (EVC) that allows vaults to recognize collateral from other vaults. This enables sophisticated credit structures—a single collateral position can back borrowing across multiple markets.
The modular design means anyone can create lending markets with custom risk parameters, oracle configurations, interest rate models, and liquidation mechanics. This ranges from permissioned institutional vaults to permissionless public markets. Euler has rebuilt with comprehensive security measures and achieved significant TVL growth since the V2 relaunch.
Key Features
Euler Vault Kit
Create custom lending vaults with configurable risk parameters and oracles
Ethereum Vault Connector
Use collateral across multiple vaults for capital-efficient borrowing
Modular Markets
Permissionless creation of lending markets for any asset pair
Flexible Oracles
Support for Chainlink, Uniswap TWAP, Redstone, and custom oracles
Risk Isolation
Isolated lending pools prevent contagion between different markets
Governance Control
Vaults can be governed, immutable, or upgradeable based on creator choice
Use Cases
Standard Lending
Borrow against major assets in curated, battle-tested vaults
Long-Tail Assets
Access lending markets for newer or less liquid tokens
Institutional Markets
Create permissioned vaults with KYC requirements and custom terms
Leveraged Strategies
Use cross-vault collateral for efficient leveraged positions
Market Creation
Deploy custom lending markets for specific assets or use cases
Project Info
Frequently Asked Questions
Euler is a modular lending protocol. V2 allows anyone to create custom lending vaults using the Euler Vault Kit (EVK). Each vault can have its own collateral types, oracles, interest rate models, and risk parameters. The Ethereum Vault Connector (EVC) links vaults together, allowing collateral in one vault to back borrowing in others.
Euler V1 suffered a $197M exploit in March 2023 due to a vulnerability in the donation attack vector. The attacker later returned the funds. Euler Labs spent over a year on V2, conducting extensive security audits and implementing a comprehensive bug bounty program. V2 is a complete architectural redesign, not a patch of V1.
The EVC is Euler's innovation allowing cross-vault collateral recognition. Instead of depositing collateral into each lending market separately, you can deposit once and have multiple vaults recognize it. This dramatically improves capital efficiency and enables complex multi-leg borrowing strategies.
Anyone can create a vault using the EVK. Vault creators choose all parameters: accepted collateral, oracles, interest rates, liquidation conditions, and governance. Vaults can be fully permissionless, require whitelisting, or have any custom access control. This enables everything from institutional private markets to public permissionless lending.
Euler V2 underwent one of the most comprehensive security processes in DeFi—extensive audits, formal verification, and a $1M+ bug bounty. However, DeFi always carries risk. The modular design means each vault has independent risk—a poorly configured vault doesn't affect others. Always research specific vaults before depositing.