What is Euler (Euler v2)?
Euler is a permissionless, modular lending protocol that lets users create lending markets for almost any ERC-20 token. In March 2023 Euler suffered a roughly $200 million exploit, but the funds were returned in full, and the protocol relaunched as Euler v2 in September 2024 with a completely redesigned modular architecture. Since the relaunch Euler has grown many times over to roughly $0.9 billion to $1 billion in deposits and has expanded across several chains, so any impression that Euler is dead or defunct after the 2023 hack is out of date. It is active and recovered.
Euler v2 is built around the Euler Vault Kit (EVK) and the Ethereum Vault Connector (EVC), which lets vaults use each other as collateral and creates a composable ecosystem of lending products.
Key Metrics
| Metric | Value |
|---|---|
| . . . . | . . . - |
| Total Value Locked | ~$0.9B to $1B |
| Version | Euler v2 (relaunched Sep 2024) |
| Chains | Ethereum, Base, Swell, Sonic, Arbitrum, BOB |
| Architecture | Modular Vault System (EVK + EVC) |
| 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 in March 2023, but all funds were returned in full
- Modular Architecture: v2 has been live and audited since September 2024 and has grown to roughly $0.9B to $1B
- Permissionless: Some vaults may have higher risk than others
- 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 →