Euler Vault Kit Introduction
The Euler Vault Kit (EVK) is a powerful, modular framework for building credit vaults — permissionless, composable lending pools that form the foundation of the Euler protocol. EVK enables anyone to deploy and configure isolated lending vaults, each with its own risk parameters, governance, and supported assets.
With EVK, developers and risk curators can:
- Launch new lending markets for any ERC-20 asset
- Set custom risk parameters (LTVs, caps, oracles, IRMs)
- Choose between governed or ungoverned vaults
- Compose vaults into markets or clusters for cross-collateralization
The modularity of EVK means you can build everything from simple, single-asset lending pools to complex, governed credit markets with advanced risk management. Whether you're a DAO, protocol, or independent builder, EVK gives you the tools to create, manage, and innovate on top of a robust, open lending infrastructure.
Why Build on Euler?
One of the most powerful aspects of Euler is its flexibility: for example, both Aave and Morpho-style markets can be built on Euler, but not the other way around. With Euler, you have much more control over the product you're building.
Aave, for example, is a monolithic system where adding a new collateral asset affects the risk of the entire market. This is because, unlike on Euler, you can't set the LTV (loan-to-value) level on an asset-to-asset basis (or, in Euler's case, vault-to-vault). On Euler, multiple vaults for the same asset can coexist, each with its own risk parameters. This granular control makes it trivial to create isolated pairs, as Morpho does, but with even more flexibility.
Euler also makes it easier to bootstrap new markets, especially if you're willing to accept certain risks via cross-market collateral rehypothecation. For example, if you want to launch your own market on Ethereum mainnet and accept USDC as collateral, you can use the USDC vault from Euler Prime (managed by Euler DAO and Gauntlet) as collateral. This vault currently holds tens of millions in USDC and provides a stable interest rate plus incentives. As a result, borrowers in your new market can immediately offset their borrowing costs by earning a stable rate on their collateral, even if that collateral is managed by a different risk curator.
Liquidations on Euler are also more nuanced. Instead of a fixed liquidation bonus, Euler uses an auction mechanism: the liquidation bonus grows as the health of a position deteriorates, so users aren't overly penalized for small violations. As a governor, you can define the maximum liquidation bonus for your vaults.
Customization is another major advantage. With hooks, you can add extra access controls, KYC checks, custom accounting, and more. The hooking mechanism lets you tailor vault behavior to your needs.
As a governor, you also have full control over the price source and interest rate models. If the defaults don't fit your use case, you can bring your own.
Finally, you get all the benefits of the Ethereum Vault Connector (EVC) out of the box. Batching is a standout feature, allowing you to group multiple operations together—enabling things like one-click leverage, which is already live in the Euler UI. Another powerful but less-known feature is operators: users can delegate control of their account to any other Ethereum address, opening up a world of automation and advanced use cases.
In short, Euler gives you the building blocks to create lending products with a level of control, composability, and innovation that simply isn't possible on other platforms.
Before You Begin: Successful vault deployment starts with careful planning. Decide which assets you want to support, which existing vaults (if any) you'll allow as collateral, and how your oracle/router will price assets. If you're new to Euler, review the core concepts in the documentation to ensure you understand the architecture and risk model.
UI Listing and Verification: Only verified governed vaults and compliant ungoverned vaults are displayed on the official Euler UI.