What is Euler Finance?
Euler Finance is a permissionless lending protocol that allows users to create lending markets for any ERC-20 token. Following a March 2023 exploit and subsequent fund recovery, Euler relaunched as Euler V2 with a completely redesigned modular architecture focused on improved risk management and flexibility.
Euler V2 introduces the Ethereum Vault Connector (EVC), enabling vaults to use each other as collateral and creating a composable ecosystem of lending products.
Key Metrics
| Metric | Value |
|---|---|
| . . . . | . . . - |
| Version | Euler V2 |
| Chains | Ethereum |
| Architecture | Modular Vault System |
| Token | EUL |
| Audit Status | Extensively audited (V2) |
How Euler Works
Euler Vault Kit (EVK): Framework for building custom lending vaults with specific risk parameters. Ethereum Vault Connector (EVC): Enables vaults to recognize collateral from other vaults, creating a connected lending ecosystem. Permissionless Markets: Anyone can create a vault for any asset with appropriate risk parameters. Risk Management: Sophisticated oracle configuration and liquidation mechanics.Yield Opportunities
1. Lending (3-12% APY)
- Supply assets to various vaults
- Interest rates based on utilization
- Choose vaults matching risk tolerance
2. Vault Creation
- Create markets for new assets
- Earn fees as vault operator
- Set custom parameters
3. EUL Governance
- Participate in protocol governance
- Vote on risk parameters
- Shape Euler's development
Track Euler opportunities with Fensory.
Risk Considerations
- Historical Exploit: V1 was exploited (funds recovered)
- New Architecture: V2 is newer, less battle-tested
- Permissionless: Some vaults may have higher risk
- Smart Contract Risk: Lending protocols are complex
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Interested in modular lending? Fensory tracks Euler and lending protocol opportunities.[Get Started with Fensory →](https://www.fensory.com)