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Overview

EulerEarn is a non-custodial, ERC-4626 compliant meta-vault that aggregates user deposits into a curated set of underlying lending vaults on Euler (and other ERC-4626 strategies). Users deposit a single asset and Earn allocates it across multiple isolated strategies to optimize yield, while preserving risk isolation per strategy.

Why EulerEarn?

  • Set-and-forget yield: Professional curators and allocators handle strategy selection and rebalancing.
  • Automated best rates: Funds are steered toward higher-yield strategies within risk bounds.
  • Risk isolation: Per-strategy supply caps limit exposure; issues in one market do not contaminate others depending on the market structure.
  • Simplicity: A single ERC-4626 token represents your share of the aggregated pool; deposits/withdrawals stay permissionless and on-chain.
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EulerEarn’s contracts are based on Morpho’s MetaMorpho (v1.1) and enhanced for Euler: generic ERC-4626 strategy support (esp. EVK lending vaults), EVC batching, Permit2 support, strict reentrancy protections, and removal of deprecated patterns (e.g., skim, multicall).

Core Concepts and Mechanics

Vault Structure & Strategies​

  • One Earn vault per underlying asset (e.g., DAI, ETH).
  • Up to 30 ERC-4626 strategies per vault (commonly Euler EVK lending vaults, but any approved ERC-4626 is possible).
  • Two ordered queues govern flows:
    • Supply queue: order in which deposits are allocated (respecting per-strategy caps).
    • Withdraw queue: order in which strategies are tapped for redemptions.
  • Per-strategy caps: curator-controlled maximum allocation for each strategy. Increases are timelocked; decreases are immediate.
  • Idle funds / cash reserve: maintain immediate liquidity via a reserve (e.g., by allocating to a non-borrowable EVK escrow vault), trading off yield for withdrawal responsiveness.

Roles & Permissions​

  • Owner: highest-privilege governance for a vault; assigns roles, sets fees and fee recipient, manages timelock, and can transfer/renounce ownership.
  • Curator: risk configuration; adds/removes strategies, sets caps, initiates forced removals (timelocked), and can revoke pending cap changes.
  • Allocator(s): manage supply/withdraw queues and trigger reallocations within caps to optimize yield and liquidity.
  • Guardian: safety role to cancel timelocked actions before execution (circuit-breaker for risk-increasing changes).

Timelocks & Safeguards​

Timelocks apply to risk-increasing or sensitive changes (e.g., cap increases, forced removals, decreasing the timelock, changing guardian). Pending actions can be revoked by the Guardian or Owner before they execute.

Fees & Yield Distribution​

  • Performance fee: Up to 50% of net positive yield, minted as additional vault shares to the fee recipient.
  • Interest accrual: As the underlying strategies accrue yield, the totalAssets of the vault gets updated on interactions (e.g., depositing, withdrawing). totalAssets is calculated by summing up the underlying strategies' assets.

Loss Handling​

  • Realized losses accounting: When a strategy incurs a realized loss (e.g., bad debt, forced removal), Earn increases lostAssets to reflect the shortfall, but does not socialize the loss to the depositors. The share price will not decrease, but depositors who remain may be unable to withdraw unless the bad debt is covered.

Integrations​

Earn vaults implement ERC-4626 and ERC20Votes, support Permit2 for approvals, and integrate with EVC for advanced batching.

For technical details, see the repository; refer to the Integrator, and Allocator guides in this section for practical workflows.