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Curators

Curators configure or operate selected vault parameters. Their responsibilities vary by vault type, governance model, and role assignment.

Curator authority depends on the deployed contracts and assigned roles. Parameter and allocation decisions can affect collateral eligibility, LTVs, caps, oracle routes, liquidation settings, liquidity, fees, and user-facing metadata. Users should review each role address and its exact permissions before supplying, borrowing, or using an Earn vault.

Credit vault risk management

In credit vaults, configured governors or other authorized roles can manage supported parameters that affect depositors and borrowers. The goal is to define collateral and debt relationships that are understandable, monitorable, and consistent with the intended market design.

Collateral selection

Collateral selection defines which vault shares can support borrowing from a liability vault. Curators should review asset liquidity, volatility, oracle availability, market depth, legal or access constraints where relevant, and correlation with the borrowed asset. Poor collateral selection can expose depositors to bad debt, especially if the collateral becomes hard to price or liquidate.

Loan-to-value management

Once collateral assets are selected, the role authorized by the vault sets loan-to-value (LTV) ratios. These ratios come in two forms: the maximum LTV, which caps how much users can borrow, and the liquidation LTV, which determines when a position becomes eligible for liquidation. The liquidation LTV is typically set higher than the maximum LTV, providing a buffer against immediate liquidations even if prices move against borrowers who have taken out maximum loans.

Where authorized, a role can adjust some LTV ratios over time through LTV ramping. Ramping can make liquidation LTV changes gradual, but the chosen duration and target still affect borrowers. Users should monitor pending or active LTV changes.

Pricing and oracle selection

Pricing affects borrow capacity, liquidations, and vault accounting. The configured oracle route values both collateral and debt assets for the controller's checks. While USD is common as a unit of account, other units such as ETH may be used when appropriate for the assets involved.

Euler's oracle-agnostic design lets the authorized role configure supported oracle providers and router configurations. Examples include Chainlink, Pyth, Redstone, Chronicle, and custom oracle routes where appropriate. Each route has tradeoffs, including data freshness, liquidity sensitivity, manipulation resistance, and operational complexity.

Supply and borrow caps

To manage risk exposure effectively, curators can implement supply and borrow caps. These caps limit how much of an asset can be deposited or borrowed, providing an additional layer of risk control. While these caps can be temporarily exceeded within a transaction batch, if a cap remains exceeded when checks run, the system only allows operations that do not increase the violation relative to the start of the batch.

Advanced controls

Available controls depend on the vault contracts and assigned roles. A governor may configure supported vault parameters and a hook target; the hook enforces only its programmed checks. Pause, guardian, curator, allocator, fee-recipient, cap, oracle, and other powers may belong to different addresses. Document each deployed role and timelock instead of assuming that one “risk curator” controls every capability.

Earn vault risk management

In Earn vaults, curators manage which strategies can receive allocations and may set strategy caps or related constraints. Earn vaults can allocate to Euler lending vaults and, where configured, other ERC-4626 strategies.

Strategy management

Curators can enable or disable specific strategies, influencing where deposits may be allocated. They should monitor strategy risk, liquidity, caps, rates, withdrawal behavior, and market conditions before making allocation changes.

Liquidity management

Earn vault configuration can define supply and withdrawal queues. These queues affect how deposits are allocated and how withdrawals are sourced. Liquidity in an Earn vault depends on the idle balance, strategy liquidity, caps, and withdrawal queue behavior.

User protection

Timelocks can give users time to observe pending role or parameter changes. Timelocks do not make a vault risk-free, but they can make governance changes easier to monitor.

Security considerations

Role labels do not grant authority beyond the deployed contracts, but authorized parameter and allocation changes can materially affect user outcomes. Poor collateral selection, overly aggressive LTVs, weak oracle routes, high caps, insufficient liquidity, or unclear governance controls can increase bad debt, liquidation, or withdrawal risk.

Before using a curator-managed vault, review:

  • Curator or governor identity.
  • Role permissions and timelocks.
  • Accepted collateral and connected markets.
  • Oracle routes and fallback behavior.
  • Supply caps, borrow caps, borrow LTV, and liquidation LTV.
  • Liquidation discount and cool-off settings.
  • Earn vault allocation queue, withdrawal queue, strategy caps, and fees.
  • Recent or pending parameter changes.

For curator workflows, use Curate.