Overview

Euler V2 is a modular lending protocol built around ERC-4626 vaults, offering flexibility in creating and managing credit-based products. Its core building block is the credit vault, which enables lending and borrowing.

By linking credit vaults as collateral for one another, market creators can design various credit markets, from simple isolated collateral-debt pairs to more complex, feature-full, cross-collateralised clusters.

Credit markets on Euler can be governed by risk curators or remain ungoverned. Credit vaults ar agnostic about asset pricing mechanisms and come equipped with many optional risk management features for curators to choose from.

Euler also features Earn vaults, which allow depositors to entrust risk curators with deploying funds into yield-generating opportunities. These funds can be allocated to Euler’s credit vaults or external products.

Euler’s modular design enables builders to create custom lending, borrowing, and asset management solutions, driving innovation in DeFi.