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Select vault pairs

When creating a new pool in EulerSwap using Maglev, the first step is to select the two assets that will form your trading pair. These assets must be available within the Euler lending protocol, as liquidity for your pool will be sourced directly from your Euler account balances.

How it works:

  • Choose Two Assets:
    You will select any two supported tokens, such as USDC/USDT for a stablecoin pair, or WETH/USDC for a volatile pair. The choice depends on your market-making strategy and the assets you have deposited in your Euler account.
  • Lending Vault Integration:
    Both assets must be present in Euler’s lending vaults. This means your deposits are automatically available for lending and borrowing within the protocol, allowing you to earn lending interest and protocol rewards (such as EUL tokens) on your deposited assets.
  • Capital Efficiency:
    Since assets remain in your Euler account and are not locked in a separate pool contract, you retain full flexibility. Your funds continue to generate yield from lending and borrowing fees, and can be reused across multiple EulerSwap pools if desired.
  • Borrowing and Leverage:
    You can borrow against your deposited assets to create leveraged positions or to implement advanced strategies like dynamic hedging.
  • Just-in-Time Liquidity:
    With assets in Euler’s lending vaults, your pool can dynamically access liquidity as needed, borrowing output tokens against input token collateral to fulfill swap requests. This makes the protocol highly capital efficient and responsive to market demand.