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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.
  • 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 (including a non-borrowable EVK escrow vault or address-0 reserve semantics), 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.
  • Yield smearing: harvested interest is released over a configurable period to smooth exchange rate jumps and reduce MEV/timing games. Withdrawing during the smear period may forgo some not-yet-distributed yield (benefiting remaining depositors).

Loss Handling​

Losses realized in a strategy are first offset against undistributed (smeared) interest; remaining losses are socialized across all depositors via the share price.

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.