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Reward EUL

Introduction

Reward EUL (rEUL) is a locked form of EUL to incentivize early adopters of the v2 version of the protocol. Users of Euler receive rEUL rewards by participating in supported markets, with both supply and borrow activities eligible for rewards. The rEUL token converts 1:1 into EUL over six months, following a non-linear unlock schedule:

  • 20% unlocks immediately.
  • 80% unlocks linearly over six months.
  • Users can redeem unlocked EUL anytime, but locked EUL is forfeited and burned if not fully vested.

Example

Suppose Alice deposits $10,000 USDC into Euler and earns 100 rEUL per month as rewards. After three months, she transfers 300 rEUL to her wallet. At this point, the unlock period for 300 EUL begins.

She has the following options:

  • Immediate redemption: She can redeem 60 EUL right away (20% of her expected 300 EUL at maturity). However, doing so forfeits the remaining 240 EUL, which will be burned from the total supply.
  • Full vesting: If she waits the full six-month period, she can redeem the full 300 EUL.
  • Partial redemption: She can redeem at any point before full maturity and receive a proportional share of the unlocked EUL.

Additionally, Alice can continue withdrawing rEUL to her wallet at any time. Each transfer starts a separate unlock schedule, making rEUL a non-fungible asset despite its ERC-20-like interface.

How to earn

Deposits or borrows eligible for rEUL incentives display a green sparkle icon next to the Supply or Borrow APY. Once deployed a user begins accruing rEUL immediately. Any earned rEUL is displayed on both the portfolio page and navigation bar for https://app.euler.finance/.

info

Important note. Reward calculations and distribution are handled by Merkl and their systems can take upto 12 hours to update.

How to convert rEUL to EUL

To convert rEUL to EUL, a user first needs to claim the rEUL to their wallet. This can be done on the portfolio page of https://app.euler.finance/ or on the Merkl webpage.

Once rEUL has been claimed to a user's wallet, a clock is started on vesting, enforcing the terms outlined above. A user can claim vested EUL from their rEUL at any time. However, locked EUL is forfeited and burned if not fully vested. The amount that is currently vested / unvested is displayed on the portfolio page of https://app.euler.finance/.

FAQ

Can I swap rEUL?​

No, rEUL tokens cannot be swapped. While they appear in your wallet like standard ERC-20 tokens, they are actually non-fungible. Each time you claim rEUL, a new vesting period begins, meaning no two claims are identical. As a result, rEUL tokens cannot be exchanged like regular ERC-20 tokens.

Can I transfer rEUL?​

It depends. Most rEUL tokens in a user's wallet are locked and cannot be transferred to general-purpose wallet addresses. However, transfers are allowed to certain whitelisted addresses, primarily smart contracts linked to third-party Euler integrations. In most cases, users will not need to transfer their tokens to these addresses.

Has rEUL been audited?​

Yes. The audit was performed by two yAudit lead security researchers HHK and Panda and can be viewed here.

Further reading

See the rEUL Rewards Governance Proposal for more details.