Are you an LLM? Read llms.txt for a summary of the docs, or llms-full.txt for the full context.
Skip to content

Euler Vault Kit introduction

The Euler Vault Kit (EVK) is a modular framework for building lending markets from ERC-4626 vaults. Each vault holds one underlying asset and can be configured with its own collateral relationships, oracle routes, LTVs, caps, interest-rate model, liquidation settings, hooks, fees, and governance.

EVK lets developers, curators, DAOs, and other market creators:

  • launch lending markets for ERC-20 assets;
  • configure risk parameters for each vault-to-vault relationship;
  • choose governed or immutable deployments; and
  • connect vaults into isolated pairs, multi-collateral markets, or larger clusters.

Why build with EVK?

Multiple vaults for the same asset can coexist with different parameters. LTVs are set between individual liability and collateral vaults, so a market creator can isolate a pair or deliberately connect several vaults. Existing vaults can also be accepted as collateral to help bootstrap a new market, with the new vault inheriting dependencies on that collateral vault's configuration and liquidity.

Liquidations use a reverse Dutch auction-style discount rather than one fixed bonus. The discount increases as a position's health deteriorates, up to the maximum configured by the vault governor.

Hooks can add custom accounting, access rules, or conditions to selected operations. The creator also chooses the vault's oracle or router, unit of account, and interest-rate model. If the oracle is a router, its routes may be managed by a separate router governor.

EVK vaults work with the Ethereum Vault Connector (EVC). EVC batching supports flows such as one-transaction leverage, while operators let users delegate control of selected accounts to another address or contract for automation and other account workflows.

Market structures

EVK supports several market structures:

  • Isolated pairs: one collateral vault supports borrowing from one liability vault.
  • Multi-collateral markets: a liability vault accepts several collateral vaults.
  • Vault clusters: connected vaults accept one another as collateral across a broader market.

More connected structures can improve capital and liquidity reuse, but they also create dependencies between the participating vaults. Choose the structure that matches the intended assets, governance, and risk model.