# Euler Docs > Lend, borrow and build without limits. ## Ecosystem ### Core Components The Euler ecosystem is built around a modular DeFi protocol, user interface, and various entities that support development, governance, and adoption: #### Protocol & Interface * [Euler Protocol](https://github.com/euler-xyz/euler-vault-kit) – A decentralized, permissionless lending protocol powered by non-custodial smart contracts on Ethereum and other EVM-compatible networks. It allows users to lend, borrow, and swap crypto assets. * [Euler Interface](https://app.euler.finance/) – A user-friendly web interface for interacting with the Euler Protocol. While it serves as the primary access point for most users, Euler's smart contracts can also be accessed through various third-party applications. #### Governance & Development * [Euler DAO](https://forum.euler.finance/) – A decentralized autonomous organization (DAO) controlled by EUL token holders, enabling community-driven governance over protocol operations and treasury allocations. * [Euler Labs](https://eulerlabs.com/) – The core development team responsible for building and maintaining the Euler Protocol, its web interface, and related tooling. While they contribute to the ecosystem's growth, the protocol remains decentralized and permissionless. * [Euler Foundation](https://euler.foundation/introduction) – A non-profit entity that fosters the long-term sustainability of the Euler ecosystem. It provides a legal wrapper for funding research, grants, and development initiatives aimed at enhancing the protocol and expanding its adoption. ### Integration Partners #### User Interfaces Third-party applications that provide alternative ways to interact with Euler's smart contracts: * [Contango](https://contango.exchange/) - A DeFi protocol that automates complex trading strategies, enabling users to create leveraged positions on Euler through a process known as 'looping'. * [DeFi Saver](https://app.defisaver.com/eulerV2/account/0x797dd80692c3b2dadabce8e30c07fde5307d48a9/manage) – A DeFi management platform offering automation, portfolio management, and leverage tools for users interacting with lending protocols and other DeFi services. * [Vaults.fyi](https://www.vaults.fyi/vaults) – A DeFi platform providing a comprehensive resource for discovering and analyzing on-chain yield opportunities across multiple protocols and networks. * [Summer.fi](https://summer.fi/) – A DeFi platform specializing in borrowing, yield farming, and automation tools to help users efficiently manage their crypto assets. * [Superlend](https://www.superlend.xyz/) – A lending and borrowing aggregator that optimizes returns by integrating multiple money markets across different blockchain networks. * [Bunni](https://bunni.xyz/explore/pools/mainnet/0x77f73405a72f844e46d26a0bfd6f145c1a45ffcf6e4af5c86811405f29d2e615?chain=mainnet) - A swap protocol built on top of Uniswap that maximizes liquidity providers' (LPs) yields by enabling the rehypothecation of idle assets into Euler vaults. #### Creator Tools Tools and resources for developers to build and expand the Euler ecosystem: * [Euler Vault Scripts](https://github.com/euler-xyz/euler-vault-scripts) - A collection of scripts for deploying, configuring, and managing vault clusters, including emergency procedures and governance integration. * [Euler Create](https://create.euler.finance/) - A bare-bones no-code platform for creating and managing lending vaults on Euler, making it easy for anyone to launch their own lending market. * [Edge Deployer](https://www.objectivelabs.io/edge) - A tool provided by Objective Labs to construct and deploy fully immutable lending vaults on Euler. * [Oracle Deployer](https://www.objectivelabs.io/oracles) - A tool provided by Objective Labs to deploy and manage price oracles for Euler markets. #### Cross-Chain Solutions Tools for moving EUL tokens between different blockchain networks: * [Stargate](https://stargate.finance/bridge) - A fully composable cross-chain bridge built on LayerZero that enables users to seamlessly transfer assets between different blockchain networks. * [Swell Superbridge](https://superbridge.swellnetwork.io/) - A native bridge facilitating seamless asset transfers between the Ethereum mainnet and Swellchain, a Layer 2 network within the Swell Network ecosystem. ### Analytics & Risk Management #### Risk Dashboards Platforms providing insights into protocol risks and market health: * [Euler Open Interest](https://open-interest.euler.finance/) – A risk dashboard showcasing the open interest of all the vaults on Euler * [Gauntlet](https://dashboards.gauntlet.xyz/protocols/euler) – A risk dashboard offering real-time risk assessment and economic modeling for Euler, helping users monitor protocol health and risk factors. * [Sentora](https://defirisk.sentora.com/metrics/ethereum/eulerv2) – The Risk Radar platform, providing real-time economic risk analysis for Euler, including liquidity risks, supply concentration, and market health metrics. #### Analytics Platforms Tools for tracking protocol performance and user activity: * [Token Terminal](https://tokenterminal.com/explorer/projects/euler) – A financial data analytics platform offering fundamental on-chain and off-chain financial metrics for Euler. * [DeFiLlama](https://defillama.com/protocol/euler#information) – A leading DeFi data aggregator, providing real-time analytics, rankings, and insights into Euler's TVL, revenue, and protocol activity. * [Dune](https://dune.com/euler_labs_team/euler-finance) – A customizable blockchain data analytics platform, allowing users to query, visualize, and share real-time on-chain data about Euler. Built by 0xPibs. * [Dune EulerSwap](https://dune.com/euler_labs_team/eulerswap) - Dedicated Dune dashboard for EulerSwap ### Rewards & Incentives Platforms that distribute rewards to Euler users: * [Merkl](https://app.merkl.xyz/?search=euler) – A reward distribution platform that automates and optimizes incentives for liquidity providers on Euler. It allows users to efficiently claim multiple rewards in a single transaction, reducing gas fees. * [Royco](https://app.royco.org/) – A market-driven incentive protocol where liquidity providers compete to earn rewards by performing specific on-chain actions on Euler, such as providing liquidity or executing trades. * [Turtle Club](https://app.turtle.club/) - A club for DeFi power users that optimizes incentives for club liquidity providers on Euler. ### Community & Support * [Discord](https://discord.com/invite/pTTnr7b4mT) - Join our community for discussions, support, and updates * [Twitter](https://twitter.com/eulerfinance) - Follow us for the latest news and announcements * [Telegram](https://t.me/@eulerfinance_official) - Join our Telegram group to stay up-to-date with all things Euler! * [GitHub](https://github.com/euler-xyz) - Explore our open-source code and contribute to development * [Blog](https://blog.euler.finance/) - Read our latest articles and technical deep-dives ## Glossary ### Core Protocol Components | Term | Definition | | --------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | **EVC** | The Ethereum Vault Connector (EVC) is an open-source interoperability layer within the Euler protocol that connects credit vaults, enabling their use as collateral for one another. It allows users to efficiently batch and execute multiple operations in a single transaction, enhancing flexibility and efficiency in decentralized finance (DeFi) operations. | | **EVK** | The Euler Vault Kit (EVK) is a framework designed to facilitate the creation of credit vaults—specialized ERC-4626 compliant vaults that incorporate borrowing functionalities. Unlike traditional ERC-4626 vaults that actively invest deposited funds to generate yield, credit vaults function as passive lending pools, allowing users to earn interest by lending out their deposited assets. | | **EPO** | The Euler Price Oracle (EPO) is a composable on-chain pricing system within the Euler protocol, designed to provide accurate and flexible asset price data. It utilizes a modular library of oracle adapters and components that implement the IPriceOracle interface, facilitating seamless integration with various external pricing sources. | | **IRM** | Interest Rate Model (IRM) is a contract that determines the borrow and supply interest rates for a vault based on its utilization. IRMs can be customized per vault to implement different rate calculation strategies. | | **Hook Target** | A contract that implements custom logic to be executed before specific actions in a vault's transaction lifecycle. Hook Targets can be used for access control, security checks, or other custom behaviors. | ### Financial Metrics | Term | Definition | | ---------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | **Health score** | The health of an account is a numerical representation of how safe a user's debt position is relative to its collateral value. It helps determine how close an account is to liquidation. If a user's health drops below 1, their account can be liquidated. Higher health means lower risk of liquidation. Health also plays a role in determining the liquidation bonus a liquidator receives. As health falls below 1 due to price changes, the bonus a liquidator gets for liquidation grows. | | **TTL** | Time to Liquidation. How long it would take for your account to be liquidated if prices stayed the same, but you kept earning or paying interest at the current rates. | | **NAV** | Net Asset Value (NAV) represents the total value of a user's account, measured as the total value of their deposits minus the total value of their debts. | | **APY** | Annual Percentage Yield (APY) represents the annualised return earned on deposits or the interest paid on borrowed assets, accounting for compound interest. It reflects the effective yield on an asset over a year, assuming continuous reinvestment of earnings. | | **ROE** | Return on Equity (ROE) measures the annualised profitability of a borrow position relative to the user's equity in Euler. It indicates the percentage return a user earns on their deposited assets after accounting for borrowing costs over the course of a year. Equity can be defined one of two ways depending on whether a user has an ordinary borrow or a multiplied position. | | **LTV** | Loan-to-Value (LTV) ratio represents the maximum amount that can be borrowed against a specific collateral asset. For example, an LTV of 0.8 means you can borrow up to 80% of your collateral's value. | | **Utilization** | The ratio of borrowed assets to total supplied assets in a vault. Higher utilization typically leads to higher interest rates. | ### Risk Management | Term | Definition | | --------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | **Liquidation** | The process of forcibly closing a user's position when their health score falls below 1. Liquidators can purchase the collateral at a discount, helping to maintain the protocol's solvency. | | **Liquidation Bonus** | The discount at which liquidators can purchase collateral during a liquidation. The bonus increases as the health score decreases. | | **Isolated Risk** | A risk management approach where each vault or market operates independently, meaning the risks associated with one vault ro market do not directly impact others. | ### Technical Terms | Term | Definition | | ------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | **ERC-4626** | A tokenized vault standard that provides a unified interface for yield-bearing vaults. Euler V2 vaults are ERC-4626 compliant, making them compatible with other DeFi protocols. | | **Rehypothecation** | The practice of using the same collateral for multiple purposes. In Euler, deposited assets can be used as collateral while still earning yield. | | **Multicall** | A feature of the EVC that allows users to batch multiple operations into a single transaction, reducing gas costs and improving efficiency. | | **Permit2** | A mechanism that allows users to approve token transfers without requiring a separate transaction, improving user experience and reducing gas costs. | ### Protocol Features | Term | Definition | | --------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------- | | **Non-borrowable Vault** | A vault where deposited assets can only be used as collateral and cannot be borrowed. This feature allows for more flexible risk management. | | **Cross-collateralization** | The ability to use assets from one vault as collateral to borrow from another vault, enabled by the EVC. | | **Sub-accounts** | Virtual accounts within the EVC that allow users to manage multiple positions with different risk parameters. | | **Operator** | A feature that allows users to delegate specific permissions to other addresses, enabling automated strategies and management. | ## Euler - The Modular Lending Platform By Euler Labs ### Introduction Euler is a flexible platform for decentralized lending and borrowing, designed to adapt and grow with the evolving world of DeFi. Euler’s modular design and institutional-grade security empower builders to create and manage custom lending markets in a fully permissionless way, tailored precisely to their needs. At the product layer, Euler v2 is a system of ERC-4626 vaults built using a custom-built vault development kit, called the EVK, and chained together using the EVC. The vault kit is agnostic about governance, upgradability, oracles, and much else. Different vault classes support different use-cases, giving users freedom through choice and modularity. Euler v2 will launch with several initial classes of vaults built on the EVK. Builders can customise and integrate these as they wish, or design their own vaults with just a few clicks. **Escrowed collateral** vaults hold deposits that can be used as collateral for taking out loans from other vaults, but do not earn their depositors interest because they do not allow borrowing. They are ungoverned. **Governed** vaults hold deposits that can both be used as collateral and borrowed, earning depositors additional yield. A DAO, risk manager, or individual manages these vaults, controlling risk, interest rates, loan-to-value, and other risk parameters. They are suited for passive lenders who trust the governor's management. **Ungoverned** vaults have fixed parameters with no active governor to manage risk, making them suited to lenders who prefer to manage their own risk. They come in two types: * **0x** ungoverned vaults have zero exposure to governance through their collaterals * **nzx** ungoverned vaults have non-zero exposure to governance because they may accept collateral with governance exposure **Yield aggregator** vaults are a special class of governed vaults that aggregate passive lender assets that can be directed by the vault governor to flow into any underlying ERC4626 vault, including both ungoverned or governed Euler vaults, but also external vaults like sDAI. The vault governor manages risk/reward by altering flows into underlying vaults with different properties. #### Synthetic assets The modular architecture of Euler v2 enables not only vanilla lending and borrowing via vaults, but also the creation of collateralized debt positions and synthetic assets. These can benefit from deep collateral liquidity inside Euler, advanced risk management and trading features provided by the EVC, and be bolstered by FeeFlow (see below). As well as synthetic assets already planned for governance by Euler DAO, the architecture of Euler enables the creation of a product class where new synthetic assets can be created in a permissionless fashion. More will be revealed about Euler synthetics in the near future. #### Reward Streams: permissionless rewards without staking RewardStreams is an innovative open-source module empowering projects to seamlessly stream rewards to users of new markets in a permissionless manner. This module is a robust and adaptable implementation of the billion-dollar algorithm, enabling the simultaneous distribution of multiple reward tokens. Unlike traditional methods, users can subscribe to receive their preferred rewards without the need to transfer their vault shares to a staking smart contract. This unique feature allows suppliers to earn rewards while concurrently taking out loans, presenting a dynamic and efficient approach to incentivizing and engaging users. #### Fee Flow: reverse Dutch auctions for fees FeeFlow is a new and powerful open-source module that provides the Euler DAO with greater control over fees generated on Euler markets, maximising ecosystem growth. This powerful tool enables the auctioning of fees to accumulate assets such as ETH, stETH, USDC, or potentially even EUL, amplifying the DAO's financial flexibility. Alternatively, these fees can be utilised to acquire DAO-backed synthetic assets, providing organic demand and helping to stabilise the asset. In this scenario, the synthetic asset becomes a valuable instrument within Euler's market ecosystem, creating new and diverse trading opportunities FeeFlow employs a reverse Dutch auction mechanism, periodically auctioning off fees by systematically reducing the auction price as fees accumulate. In Euler v2, vault creators can set fees, ensuring a passive income stream while sharing a portion with the Euler DAO in a decentralised, efficient, and MEV-resistant manner. This innovative approach enables the DAO to convert fees from various assets into a unified, accumulated token. #### Free Market Liquidations Euler v2 allows more advanced vault creators to customise and design their own liquidation flow, but the EVK comes equipped with Euler v1’s innovative reverse Dutch auction liquidation flow as standard. This mechanism was popular with borrowers and traders on Euler v1, where bonuses for liquidators on large loans were \<0.7%, the cheapest of any DeFi lending protocol. This not only protects borrowers, but also helps protect lenders by maintaining the solvency of pools. Ultimately, the less collateral paid to MEV bots by borrowers, the better. ### Ethereum Vault Connector (EVC) The EVC is an interoperability layer and powerful primitive enabling vault creators in the Euler ecosystem to bootstrap new lending products easily by connecting vaults together and recognizing existing deposits in far away vaults as collateral. Whilst a key module inside Euler v2, the EVC is an open-source project supported by Euler Labs that anyone can launch products on. The white paper and development documentation can be found at evc.wtf. One of the goals of the EVC is to abstract away many of the features common to all credit-based protocols in order to let developers focus on product features tailored to specific types of users. In this way it helps developers build their own lending protocols, stablecoins, yield aggregators, margin trading apps, and much else. In the long run, it is expected to usher in a wave of innovation in lending as it supports lending products backed not only ERC20 tokens, but also irregular asset classes, such as RWAs, NFTs, IOUs, synthetics, and more. Growth of vaults designed to work with the EVC expands the Euler ecosystem and leads to more flexibility for lenders and borrowers alike. This leads to higher yields and powerful network effects over the long term. #### Account Managers for advanced trading and risk management For developers building on the EVC, it provides a range of important features for more advanced users of lending protocols out of the box. These include multicall-like batching, flash liquidity for efficient refinancing of loans, simulations, gasless transactions, and more. One of the powerful features of the EVC is account manager functionality implemented through a smart contract called an operator. Operators can be smart contracts or EOAs that can be delegated responsibility to act on a user’s behalf. Amongst other use cases, this feature can be used to implement advanced trading and risk management strategies, including conditional orders like stop-loss and take-profit, custom liquidation flows, or intent-based systems. Developers can build their own operator smart contracts to implement risk management and position automation strategies and make them available to users as separate products. The EVC is a multicall contract with a special user authentication layer. It allows any external contracts to be called without needing adaptor contracts. This not only means that all the functionality is accessible to both EOAs and smart contract wallets, but also allows for limitless expansion of the ecosystem through the development of new EVC-compatible products in a permissionless fashion. Although the EVC allows only one outstanding liability at any given time, it provides each address with 256 virtual addresses (“sub-accounts”), which provide a gas-efficient way for users to isolate and manage risk without the need to maintain multiple separate wallet accounts. #### Collateral direct from a user’s wallet An alternative path to creating a collateral-only asset is to create an ERC20Collateral token, which is a simple extension to the ERC20 token standard to enforce compatibility with the EVC. Project making use of this extension can unlock an entirely new wave of composability. Users are no longer required to deposit their tokens into vaults in order to use them as collateral, they can do so directly from their wallet. This helps them retain their governance rights and other token privileges, whilst also helping avoid generating unnecessary taxable events. Whenever the user's balance decreases (outgoing transfer/token burn), the token contract calls into the EVC to check whether the outstanding loan rules are not violated. With an addition of a simple modifier which routes transfer calls through the EVC, mentioned account status checks can be deferred until the end of a batch of multiple operations, allowing a user to freely use their tokens within a batch as long as their account is solvent at the end. ERC20Collateral also makes the token compatible with EVC sub-accounts system out of the box. ### Use-cases and examples #### Leverage by chaining LRT/LST/ETH vaults * Create an vault for each major LST allowing all major LRTs as collateral. * Create a WETH vault that allows each of those major LSTs and each of the LRTs as collateral. * Use-case: LRTs depositors borrow LSTs, and LRTs + LSTs depositors borrow WETH, swap, re-deposit, and leverage their yield. Consequence: this special Euler WETH vault has the highest demand for borrowing of any vault in DeFi. #### Leveraged liquidity provision * Create a WETH vault and a LST vault that allow WETH/LST LP as collateral. * Use-case: LP token holders borrow more WETH and LST against their LP tokens and deposit into an AMM to get more LP tokens. * Consequence: LP token holders can leverage their LP positions whilst using simple, gas-efficient AMM protocols. #### Impermanent loss hedge * Create a WETH/USDC LP token vault that allows WETH and USDC as collateral. * Use-case: WETH and USDC token holders can borrow LP tokens to hedge or go short. * Consequence: LP token holders earn additional yield on their tokens, helping compensate against impermanent loss. #### USD carry trades * Create a custom vault pair that allows USDC to borrow USDT, and USDT to borrow USDC on high leverage. * Use-case: if USDC APY is higher than USDT APY, users can deposit USDC, borrow USDT, swap to USDC, and re-deposit to carry out a carry trade. * Consequence: users can hedge exposure to stablecoin depeg risk, carry out interest rate arbitrage, and profit from carry trades. #### Margin-trading real-world assets * Create a vault for USDC allowing a high-yielding RWAs as collateral, using hooks to enable secondary-transfer restrictions to be observed. * Use-case: RWA depositors borrow USDC at lower yield, swap to more RWA, and re-deposit, looping to go long. * Consequence: Margin trading on real-world assets as RWA depositors can leverage their yield and earn the interest rate spread on leverage ### Long-term picture The ability to lend and borrow digital assets is the foundation on which DeFi is built. Lending protocols are typically composed with decentralised exchanges (DEXs) in order to hedge risk and construct leveraged positions. In this way, borrowers pay interest to lenders, forming the foundation for capital markets in DeFi. Whilst lenders today have many options from which to earn sustainable and passive forms of yield, the trading experience for borrowers and traders remains remarkably poor. Monolithic lending protocols restrict borrowing with limited asset selections and conservative, one-size-fits-all loan-to-value (LTV) requirements, and then punish traders with heavy fines when they face liquidation. Meanwhile, isolated lending markets offer more flexibility, but often fragment liquidity and increase net costs for traders by disallowing rehypothecation and therefore extra yield on collateral. Moreover, in many cases traders are forced to navigate multiple protocols, governance systems, and user interfaces, paying leveraged fees to each along the way. Together, these market constraints and inefficiencies mean that many traders end up turning to CeFi platforms and relying on perpetual futures markets to put on trades, rather than using decentralised spot markets. This means lower yields for DeFi lenders and, consequently, lower liquidity in less capital efficiency in DeFi across the board. Euler v2 is a modular lending platform that aims to fix these problems and become the primary liquidity layer for DeFi. Monolithic lending protocols like Aave v3 help foster greater capital efficiency because they pool collateral used for different purposes together and enable rehypothecation. However, they only allow new collateral types to be added under restrictive economic conditions and typically only via governance actions. Isolated lending protocols like Compound v3 or Morpho Blue tend to allow greater flexibility in collateral use, but tend to fragment collateral and prevent rehypothecation, leading to lower capital efficiency. Euler’s modular architecture helps to solve the liquidity fragmentation problem associated with isolated pools by allowing permissionless creation of vaults that can use any other vault in the broader ecosystem as collateral. This ability to connect together different types of vaults from different product lines via the EVC provides unparalleled flexibility and modularity for lenders, borrowers, builders, traders, and more. Thanks to the modular design of the system, this can all be achieved without compromising on security or risk management. Vault-chaining via the EVC promises to enable new yield opportunities available nowhere else in DeFi today. With time, whole new product lines can be innovated and brought into the ecosystem helping to power vast network effects. Real-world assets, non-fungible tokens, IOUs for un-collateralised lending, peer-to-peer lending, oracle-free lending, and much more, are all possible directions for the growth of the ecosystem. With this design, together with other developments yet to be announced, Euler aims to become a global liquidity layer and one-stop shop for lending, borrowing, and trading on EVM-based networks. ### Acknowledgements With special thanks to Certora, Alberto Cuesta Cañada, Christoph Michel, and StErMi for helpful feedback on some of the mechanisms described herein. import { Mermaid } from "../components/Mermaid"; ## Introduction ### What is Euler V2? **Euler V2** represents a significant evolution of the Euler protocol, redesigned from the ground up with modularity, security, and capital efficiency at its core. V2 introduces a novel architecture centered around the **Euler Vault Kit (EVK)**. This kit allows anyone to deploy isolated, customizable lending and borrowing markets for virtually any ERC20 token, moving away from the monolithic pool structure. Key characteristics of Euler V2 include: * **Permissionless Vault Creation:** Anyone can create a lending vault for an asset using the EVK, fostering a diverse ecosystem of isolated risk pools. Some vaults may be configured as **non-borrowable (collateral-only)**. * **Modularity:** The protocol is built with distinct, replaceable components (Vaults, Oracles, Interest Rate Models, Hook Targets) allowing for greater flexibility in configuration. * **Isolated Risk:** Each market, being a collection of vaults, operates independently, meaning the risks associated with one market do not directly impact others, enhancing overall protocol resilience. * **Enhanced Capital Efficiency:** Features like sophisticated oracle integrations and customizable **Interest Rate Models (IRMs)** aim to optimize capital utilization within each vault. * **Developer Focus:** The EVK and accompanying tools like the **Ethereum Vault Connector (EVC)** are designed to empower developers to build innovative financial products and strategies on top of Euler. ### Key Concepts #### Core Components * [**Euler Vault Kit (EVK):**](concepts/core/vaults) The foundational toolkit comprising smart contracts that enable the creation and management of individual lending/borrowing vaults. Each vault is essentially an ERC4626-compliant tokenized debt market. * **Vaults:** Isolated lending pools for a specific underlying asset. Users deposit assets to earn yield (generated from borrows). These deposits can also serve as collateral, enabling the user to borrow assets from *other* vaults within the Euler V2 ecosystem. Some vaults are designated as **non-borrowable**, meaning assets deposited can only be used as collateral and cannot be borrowed. #### Periphery * [**Oracles:**](concepts/core/price-oracles) Price feed contracts responsible for providing secure and reliable price data for assets within a vault, crucial for collateral valuation and liquidation checks. Euler V2 supports a wide range of oracle types (Chainlink, Pyth, Redstone, Chronicle, etc.) and allows custom configurations per vault. * [**Interest Rate Models (IRMs):**](concepts/financial/interest-rates#interest-rate-models-irm) Contracts that determine the borrow and supply interest rates for a vault based on its utilization (ratio of borrowed assets to total supplied assets). IRMs can be customized per vault. #### Advanced Features * **Hook Targets:** Optional contracts that can be attached to vaults to execute custom logic **before** specific actions occur in the transaction lifecycle (e.g., before deposit, before borrow, before liquidation). Hooks call into designated **Hook Target** contracts (like `HookTargetAccessControl` or `HookTargetAccessControlKeyring`), which implement the specific logic (e.g., access control, security checks). This provides significant flexibility for customizing vault behavior. * [**Ethereum Vault Connector (EVC):**](concepts/core/evc) A core contract acting as an **alternate entry point** for interacting with EVK vaults. It is essentially a sophisticated multicall contract with built-in authentication and authorization features. The EVC mediates interactions between vaults, enabling using collateral in one vault to borrow from another. It handles authentication, allowing vaults to trust calls originating from the EVC. Key features include batching calls (atomic execution, deferred checks), permissions delegation to operator contracts, sub-accounts (virtual accounts), and [permit-based execution (EIP712)](https://eips.ethereum.org/EIPS/eip-712). * **Controller (EVC Context):** When a user borrows from a vault via the EVC, they designate that vault (or another contract) as a Controller for their EVC account. This grants the Controller authority over the user's enabled collateral set within the EVC, allowing it to enforce the borrowing vault's rules (e.g., prevent collateral withdrawal, seize collateral via `controlCollateral` during liquidation). #### Risk Management * **Risk Management:** V2 employs isolated markets, **vault-to-vault loan-to-value factors**, and liquidation mechanisms to manage risk. The configuration of individual vaults (which other vaults are accepted as collateral, LTVs, IRMs, oracle choice, attached Hook Targets) is key to its risk profile. ### Euler V2 vs V1 While sharing the goal of efficient lending and borrowing, Euler V2 differs significantly from earlier versions: * **Architecture:** Earlier versions had a single, monolithic pool for all assets with cross-collateralization. V2 uses **isolated, permissionlessly deployable vaults** via the EVK. * **Risk:** Earlier systemic risk is replaced in V2 by risk **isolated** to individual markets. * **Asset Listing:** Governance-managed tiered listings are replaced in V2 by **permissionless vault creation** for any ERC20, with risk parameters set by the vault creator. * **Oracles:** V2 introduces a more robust and flexible oracle framework supporting various providers and configurations per vault. * **Modularity:** V2 is highly modular, allowing components like IRMs, Oracles, and Hook Targets to be tailored per market, offering significant customization. ### Architecture Diagram >EVC: batch([operation 1, operation 2, ...]) loop EVC->>EVC: set the execution context EVC->>Any Vault: operation i Any Vault->>EVC: getCurrentOnBehalfOfAccount(address(vault)/address(0)) Any Vault-->>Any Vault: vault snapshot Any Vault->>Any Vault: operation i logic Any Vault->>EVC: requireAccountStatusCheck(account) Any Vault->>EVC: requireVaultStatusCheck() end critical EVC->>Controller Vault: checkAccountStatus(account, collaterals) Controller Vault->>Controller Vault: is msg.sender EVC? Controller Vault->>EVC: areChecksInProgress() Controller Vault-->>Any Vault: balanceOf() Controller Vault-->>Price Oracle: getQuote() Controller Vault->>Controller Vault: determine account's liquidity EVC->>Any Vault: checkVaultStatus() Any Vault->>Any Vault: is msg.sender EVC? Any Vault->>EVC: areChecksInProgress() Any Vault->>Any Vault: determine vault's health end EVC->>EVC: clear the execution context `} /> #### Description The Euler V2 architecture starts with the user interacting either directly with an EVK Vault or, more commonly, through the **Ethereum Vault Connector (EVC)**, which acts as a secure alternate entry point and multicall facility. The EVC routes actions to the appropriate EVK Vault(s), handling authentication and potentially batching operations. When borrowing via the EVC, a Controller contract gains authority over the user's enabled collateral set to enforce loan terms across vaults. Each EVK Vault interacts with dedicated Oracle and Interest Rate Model (IRM) contracts (not shown on the diagram). Optional Hooks can call into specific Hook Target contracts to modify vault behavior before actions occur (not shown on the diagram). This modular design ensures isolated risk per vault, while the EVC enables complex cross-vault interactions, authentication, and rule enforcement. ### Getting Started Ready to explore Euler V2? Here are some next steps: 1. Read the [Lite Paper](./lite-paper) for a detailed technical overview 2. Check out the [Concepts](./concepts/index) section to understand key terms and mechanisms 3. Visit the [User Guide](./user-guide/index) for practical usage instructions 4. For developers, explore the [Developer Guide](./developers/index) to start building 5. For risk curators, explore the [Creator Tools](./creator-tools/index) to start creating 6. Join our [Discord](https://discord.com/invite/pTTnr7b4mT) to connect with the community ## Batch Transactions **Batch transactions** on Euler let you combine multiple actions—like supplying, borrowing, swapping, and more—into a single, atomic blockchain transaction. This feature streamlines complex operations, saves on gas fees, and together with the simulation feature, provides a safer, more predictable user experience. ### What are Batch Transactions? Instead of sending separate transactions for each action (e.g., one to supply collateral, another to borrow), batch transactions let you bundle several operations together and submit them as a single transaction. This is especially useful for advanced strategies like Multiply, but can benefit any user looking to optimize their workflow. #### Common Actions You Can Batch * Supplying assets * Borrowing assets * Withdrawing assets * Repaying debt * Swapping tokens (often required for Multiply/Strategy loops) ### Why Use Batch Transactions? Batching offers several advantages: 1. **Gas Savings:** Executing multiple operations in one transaction is usually much cheaper than doing each separately. 2. **Atomicity:** All actions in a batch either succeed together or fail together—no partial execution. 3. **Convenience:** Simplifies complex operations, like opening a leveraged Multiply position, into a single step. 4. **Simulation:** Preview the outcome of all batched actions before sending the transaction on-chain. ### How Batch Transactions Work in the Euler App The Euler app provides an explicit batching interface, often visible as a "Batch" panel or cart on the right side of the screen when managing positions. #### Using the Batch Cart 1. **Adding Actions:** Instead of executing immediately, actions like supplying, borrowing, or setting up a multiply loop can be added to the batch cart using an "Add to batch" button. 2. **Viewing the Batch Cart:** The Batch panel displays the sequence of actions you've queued (e.g., Supply USDC, Borrow WETH, Swap WETH for USDC). 3. **Simulation:** * Use the **"Simulate transactions"** toggle in the Batch panel to preview the combined effect of all actions before sending any transaction. * The simulation predicts your resulting position, including metrics like **Health Score**, **Time to Liquidation**, and **Estimated Gas Fee**. * Adjust your batch until you're satisfied with the simulated outcome. 4. **Execution:** * Once you've reviewed the batch and simulation results, click **"Execute"**. * Confirm the transaction in your wallet. All queued actions are submitted to the blockchain as one atomic transaction. ### Best Practices * **Always simulate your batch before executing** to understand the impact on your positions and avoid surprises. * **Monitor gas fees**—batching is usually cheaper, but complex batches can still incur significant costs. * **Review the order of actions** in your batch to ensure they execute as intended. * **Use batching for Multiply/Strategy positions** to streamline the process and reduce risk of partial execution. Batch transactions give you greater control, efficiency, and safety when managing your positions on Euler. ### Understanding Atomic Transactions in the UI Many operations in the Euler UI already combine multiple actions into a single transaction, even when executed immediately. For example: * **Borrowing:** When you borrow assets, the UI automatically supplies the assets from your wallet or takes them from your existing deposits in a single transaction. * **Multiply/Strategy:** These operations automatically perform a series of actions—borrowing, swapping, and redepositing—all in one transaction. This means you don't always need to use the batch builder to achieve atomic transactions. The batch builder is most useful when you want to combine multiple distinct operations or when you need to preview the outcome of a complex sequence of actions before executing them. ## Borrowing Assets ![Figure 1: The Borrow page of Euler](/img/user-guide/general/borrowGeneral.png) **Figure 1:** The Borrow page of Euler Borrowing assets on Euler allows you to use your deposited collateral to access additional liquidity. This guide will walk you through the process of borrowing assets from Euler Vaults. ### Why Borrow Assets? Borrowing assets can be useful for various purposes, such as accessing liquidity without selling your collateral, leveraging your position for potential gains, or participating in specific strategies. Borrowers pay interest based on the vault's [**Interest Rate Model (IRM)**](../concepts/financial/interest-rates#interest-rate-models-irm), which is distributed to suppliers. :::warning Borrowing involves risks, including the potential for liquidation if your health score falls below a certain threshold. It's crucial to monitor your position and maintain a healthy collateral ratio. ::: ### Finding Borrow Pairs The "Borrow" page in the Euler app ([app.euler.finance/borrow](https://app.euler.finance/borrow)) lists all available borrow pairs. 1. **Navigate:** Go to the "Borrow" page. 2. **Browse Pairs:** Each row in the table displays: * **Collateral Asset:** The asset you will supply as collateral (with market name) * **Debt Asset:** The asset you wish to borrow (with market name) * **Supply APY:** The annual percentage yield for supplying the collateral asset (may include rewards) * **Borrow APY:** The annual percentage yield for borrowing the debt asset (may include rewards) * **Max ROE:** The maximum potential Return on Equity for the pair * **Max Multiplier:** The highest leverage multiplier available for this pair * **LLTV:** The liquidation loan-to-value ratio for the pair * **Liquidity:** The available liquidity for borrowing, shown in both USD and asset units You can sort and filter by any of these columns. Click on a pair to view more details and open a borrow position. :::info Each APY value is inclusive of intrinsic yield (e.g., staking yield) and available rewards campaigns. Hover over the value for a breakdown. ![APY Breakdown](/img/user-guide/apyBreakdown.png) ::: :::warning **Risk Considerations** Borrowing involves risks, including smart contract risk and the risk of liquidation. Understand the specific risks associated with the pair before borrowing. ::: ### Understanding the Borrow/Multiply Position Page When you select a borrow pair, you're taken to a detailed page that is shared by both Borrow and Multiply actions. The only difference is the form shown, depending on whether you select "Borrow" or "Multiply" at the top. **Key Metrics and Sections:** * **Overview:** At the top, you'll see the collateral and debt assets, the market, and a summary of key metrics. * **Key Metrics:** These include: * **Supply APY:** Yield for supplying the collateral asset. * **Borrow APY:** Cost (or reward) for borrowing the debt asset. * **Max ROE:** Maximum potential Return on Equity. * **Max Multiplier:** Highest leverage available for this pair. * **LLTV:** Liquidation Loan-to-Value ratio. * **Liquidity:** Available liquidity for borrowing, in both USD and asset units. * **Oracle Section:** This section shows which price oracle is used for the pair, providing transparency on how prices and risk are determined. * **Tabs for Collateral and Debt:** You can switch between the "Collateral" and "Debt" tabs to see more details about each vault, including risk parameters, governor, exposure, utilization, and more. :::tip The same page is used for both Borrow and Multiply. Simply select the desired action at the top to switch between the two forms. ::: ### The Borrowing Process Once you have chosen a pair on the "Borrow" tab: 1. **Specify Amount:** In the borrow interface, enter the amount of the debt asset you wish to borrow. You can often see your wallet balance and use a "Max" button. 2. **Collateral Selection:** Choose the source of your collateral. If you have the required asset in your wallet, you can supply it directly. If you already have the asset supplied in your Savings (account 0), you can select it as the collateral source using the drop-down menu that appears. This allows you to use existing deposits or supply new collateral as needed. 3. **Confirm Borrow:** After approval (or if already granted), click the "Borrow" button and confirm the transaction in your wallet. This transfers the borrowed asset to your wallet and requires a gas fee. 4. **Approve (if necessary):** If this is your first time using a particular asset as collateral, you will need to approve the Euler smart contracts to interact with your collateral token. Euler uses Permit2 by default for token approvals, which allows for more gas-efficient approvals and revocations. You can disable Permit2 usage in the settings if preferred. If your wallet supports EIP-7702, it will be automatically detected and approvals will be batched with the borrow transaction, eliminating the need for a separate approval transaction or message signature. :::note The Net APY in the transaction summary takes into account the impact your position has on the vaults, reflecting where the new interest rates will be at. This does not consider impact on rewards. ::: :::tip ou can either supply directly by clicking "Open position" or use "Add to batch" if you want to build a more complex transaction (for example, batching multiple actions together before submitting). Batching can help save on gas and streamline your workflow when performing several actions at once. ::: ### After Borrowing * **Portfolio Update:** Your borrowed assets will appear under the "Positions" tab within your "Portfolio" section. You will see your borrow balance and the corresponding Borrow APY. * **Managing Your Position:** Monitor your health score and collateral ratio regularly. Adjust your position as needed to maintain a healthy collateral ratio and avoid liquidation. * **Repaying:** You can repay your borrowed assets at any time from the Portfolio section. You may choose to repay your debt from your position's collateral, savings, or wallet. ## EulerEarn Earn passive yield by supplying assets to **managed vaults** that allocate your deposit across underlying strategies on Euler. This guide walks you through how **EulerEarn** works, how to read a vault page, and how to deposit and withdraw. ### TL;DR * **What it is:** EulerEarn is a fork of MetaMorpho which is a non-custodial, ERC-4626 “meta-vault.” You deposit one asset; the vault allocates across a curated set of yield strategies on Euler. * **What you get:** Auto-accruing yield (via share price) and transparent, on-chain reporting of allocations, fees, and activity. * **Who it’s for:** Users who want set-and-forget yield on a single asset with curator-managed allocations. ### How Earn Works 1. **Deposit** an asset (e.g., USDC, WETH) into an Earn vault. 2. The vault **mints shares** to your wallet. Your position value changes as the vault’s share price moves. 3. A designated **Allocator** rebalances the vault, moving funds among approved **strategy vaults** to target better risk-adjusted yield. 4. Any **performance fee** (if set) is taken from positive yield as defined by the vault, not from principal. 5. **Withdraw** anytime for the underlying asset if there is liquidity available to do so. ### Roles & Responsibilities Each Earn vault shows its management roles on the vault page under **Management**: * **Owner:** Admin of the vault (typically a multisig). Can set role addresses and high-level parameters. * **Curator:** Selects/approves the list of **strategy vaults** the Earn vault may allocate to and may set caps. * **Allocator:** Executes **rebalances** (deposit/withdraw between strategies) according to the vault’s policy. * **Guardian:** Has the ability to veto pending critical actions. * **Fee receiver:** Address receiving any performance fees shown on the page. :::tip Always review the **Management** box for each vault to understand who controls policy and operations. ::: ### Reading the Vault Page A vault page presents all the essentials at a glance: #### Header Stats * **Total supply:** Total assets currently in the vault. * **Liquidity:** Amount not being currently utilized by the underlying strategies and able to be withdrawn. * **7d APY:** Recent annualized performance over the last 7 days (back-tested from on-chain PnL). Historical windows (30d / 90d) are below. #### Overview * **Capital Allocator:** The owner of the Earn vault * **Performance fee:** If present, fee applied to positive yield per vault rules. * **Days active:** How long the vault has been live on-chain. #### Performance * **7d / 30d / 90d APY:** Historical APY data. #### Exposure Shows where capital is allocated **right now**: * **Strategy vault:** The underlying yield source/vault. * **APY:** The current measured APY for that strategy. * **Allocation % / $:** Portion of vault funds deployed to the strategy. #### Management Addresses for **Owner, Curator, Guardian, Allocator, Fee receiver**. Click to verify on-chain. #### Rebalancing An on-chain log of allocation moves (deposits/withdrawals) performed by the Allocator. #### Activity User-level deposits/withdrawals to/from the Earn vault. #### Addresses Quick links to: * **Underlying token** contract * **Earn vault** contract * **Fee receiver** (if any) ### Using Earn #### 1) Connect & Choose a Vault 1. Open **Earn** in the app and connect your wallet. 2. Filter by **Asset** (e.g., USDC/WETH) and optionally by **Capital Allocator**. 3. Click a vault to inspect Exposure, fees, management, and history. #### 2) Deposit 1. Enter the amount and approve the token if prompted (first time only). 2. Confirm the **Deposit** transaction. 3. You receive **vault shares**; your wallet balance displays them as an ERC-4626 position. **Gas & slippage:** Deposits are simple transfers/mints; there’s no price slippage. #### 3) Withdraw 1. On the vault page, switch to **Withdraw** and enter an amount. 2. If there’s sufficient **Liquidity**, the withdrawal completes immediately. :::note In the event that there is insufficient liquidity, you will have to withdraw less until additional liquidity becomes available. ::: ### Fees * **Performance fee (optional):** Displayed in the **Overview** and routed to the **Fee receiver**. Charged on positive yield per-vault policy. * **Protocol fees:** If any, they’ll be shown on the vault page. ### Risk Summary All DeFi carries risk. Before depositing, consider some of the following risks: * **Strategy risk:** Underlying strategy vaults can underperform or incur losses. * **Role risk:** The vault owner is ultimately in control of who they assign the roles to. Additionally, Curator/Allocator choices impact where funds are deployed and how quickly liquidity can be freed. * **Liquidity risk:** Immediate withdrawable liquidity can be lower than total supply at times. The **Exposure**, **Management**, and **Rebalancing** sections exist to keep these trade-offs transparent. ### Frequently Asked Questions **Is my yield auto-compounded?**\ Yes. Earn uses ERC-4626 shares. Your position value increases as the share price rises with strategy yield. **What determines APY?**\ APY is derived from recent realized performance and will fluctuate with market rates and allocations. Check **7d/30d/90d** views for further historical data. **Why is there a performance fee?**\ Fees align incentives and fund ongoing operations/security. If set, the percentage appears under **Overview**. **Which networks and assets are supported?**\ Support varies by vault. The Earn list shows available assets on your selected network. ### Troubleshooting * **Can’t approve or deposit:** Ensure you’re on the right network and have gas for that chain. * **APY shows 0%:** New vaults or very small TVL can produce noisy/zero short-window metrics. Check 30d/90d as the vault matures. * **Withdrawal reverts:** Try a smaller amount to match or go under the current liquidity. ### Developer & Integrator Links * [**Developer Docs**](../developers/euler-earn) * [**Contracts & Sources**](https://github.com/euler-xyz/euler-earn) *For programmatic integrations, use the Developer Docs for interfaces, ABIs, and examples.* ## Creating an EulerSwap Position ### Overview EulerSwap's liquidity provision interface guides you through a simple 5-step process to create your liquidity positions. ### Getting Started * Connect your wallet to the EulerSwap interface * Ensure you have assets in supported Euler vaults * Follow the 5-step flow to create your position * Monitor and adjust your position as needed ### Step-by-Step Guide #### Step 1: Choose Your LP Strategy Select from three position types optimized for different goals. Leveraged and Just-in-Time (JIT) Liquidity are most suitable for correlated pairs. * **Ordinary LP**: Traditional liquidity provision with lending yield benefits * **JIT Liquidity LP**: Maximize capital efficiency with Just-in-Time liquidity provision * **Leveraged LP**: Amplify your position through collateral looping #### Step 2: Select Vaults Choose the vaults that will form your liquidity position. * The interface shows compatible vaults based on your selections * Funds must be allocated to these vaults before proceeding #### Step 3: Choose Liquidity Amounts Configure your position by setting: * Deposit amounts for each asset * Single-sided or balanced liquidity options * Maximum borrowing limits for enhanced depth Real-time USD values help you understand your total position size. #### Step 4: Choose Concentration Factor The concentration factor determines the distribution across the entire liquidity range. While EulerSwap always provides full-range liquidity, a low concentration factor means liquidity is spread more evenly. A concentration factor of 0 is equivalent to a Uniswap-v2 liquidity position. As the concentration factor increases, liquidity is distributed more tightly around the equilibrium price, supported higher volume in concentrated pairs. At a concentration factor of 1, there is no price impact, meaning most pools will want to use a concentration factor below 1. Note carefully the prices served by the majority of your liquidity distribution, as you hover over the ends of the liquidity graph. #### Step 5: Review and Deploy Before confirming, review your complete position details: * Total liquidity value * Expected rewards APR * Concentration parameters * Health metrics One click deploys your position and begins earning fees immediately. ## Getting Started with Euler V2 Welcome to Euler V2, a flexible and modular platform for decentralized lending and borrowing. This guide will walk you through the initial steps to begin interacting with the Euler ecosystem. ### Connecting Your Wallet ![Figure 1: Connect a Wallet modal](/img/user-guide/connectWallet.png) **Figure 1:** Connect a Wallet modal upon clicking the "Connect" button on the top right To use Euler, you first need a compatible wallet and some assets on the relevant blockchain (e.g., Ethereum Mainnet). Euler supports various popular browser extension wallets and mobile wallets through WalletConnect. 1. **Choose a Wallet:** If you don't already have one, install a wallet like MetaMask, Rabby, Coinbase Wallet, or any other wallet compatible with WalletConnect. 2. **Access the Euler App:** Navigate to the official Euler App ([app.euler.finance](https://app.euler.finance/)). Other interfaces might exist, but this guide focuses on the primary app. 3. **Connect:** Look for the "Connect" button, usually located in the top-right corner. Click it and select your wallet provider. Follow the prompts in your wallet to approve the connection. Ensure you are connecting to the correct network (e.g., Ethereum Mainnet). Once connected, the interface will display your wallet address, indicating a successful connection. ### Understanding the Interface The Euler app provides access to core functionalities through several main tabs: * **Portfolio:** This is your central dashboard. It's divided into: * **Positions:** Shows your active borrow and multiply positions, including details like Net Asset Value (NAV), Return on Equity (ROE), multiplier, health score, and liquidation price. * **Savings:** Displays assets you have supplied directly for earning yield (direct lending). These assets reside in your primary account (account 0) and can be selected as a source of collateral when opening new positions. * **Rewards:** Lists any claimable rewards (e.g., USDC, EUL) earned through protocol participation. * **Lend:** This tab lists all available vaults (markets) where you can supply assets to earn yield (Savings). You can see the asset, governor, supply APY, total supply, exposure (which vaults accept this as collateral), and utilization for each vault. * **Borrow:** This tab lists available pairs for opening borrow positions. It shows the collateral asset, debt asset, supply APY (for the collateral), borrow APY (for the debt), max ROE, max multiplier, LTVs (Borrow and Liquidation), and market liquidity. * **Strategies:** This tab lists pre-configured strategies, often involving leverage (looping) or specific yield opportunities. It shows pairs, max ROE, max multiplier, liquidity, and whether assets are correlated. * **EUL:** This tab focuses on the Euler governance token (EUL) and its role in **Fee Flow Auctions**. While EUL grants governance rights, this section allows users to participate in auctions to purchase accumulated protocol fees using EUL. The interface shows auction details like the current price (in EUL), max claimable fee value, time remaining, and your EUL balance. Users can place bids to settle the auction and claim fees. It also lists vaults generating fees available to claim. #### Key Concepts from UI * **Account Abstraction:** Euler uses an account system. Your direct supplies (Savings) go into your main account (0). Borrow and Multiply positions are opened in separate, subsequent accounts (1, 2, 3...). This isolates risk between positions. Note that each account can only have one borrow or multiply position. * **Collateral Source:** When opening a position, collateral can be sourced from your Wallet or your Savings account. * **Atomic Execution:** Actions like supplying collateral and borrowing/multiplying are often combined into a single, atomic transaction (using batching). * **Vaults & Pairs:** Lending happens by supplying to individual vaults (markets). Borrowing and Strategies operate on pairs of vaults (collateral vault / debt vault). * **LTVs:** Loan-to-Value ratios are crucial. **Borrow LTV** determines your initial borrowing power. **Liquidation LTV (LLTV)** determines the threshold at which your position risks liquidation. * **Health Score:** A metric shown for borrow/multiply positions indicating safety against liquidation (higher is generally safer). A position will be liquidated when the health score reaches 1. * **Risk Curator:** Each vault or market either ungoverned or is overseen by a risk curator, who is responsible for managing risk parameters, selecting oracles, setting loan-to-value ratios, and ensuring the safety and efficiency of the protocol. The risk curator may adjust parameters over time to respond to changing market conditions and protect depositors, but cannot withdraw user funds. Users should be aware that the effectiveness of risk management depends on the curator's decisions. #### Where Do My Positions and Deposits Live? ![Figure 2: The portfolio page](/img/user-guide/portfolio.png) **Figure 2:** The portfolio page focused on the "Savings" tab When you use Euler, your main wallet address is used for your Savings (direct deposits). Each time you open a borrow or multiply position, Euler creates a new "sub-account" for you behind the scenes. These sub-accounts are special addresses that only you can control, and they help keep your positions separate for better risk management. * **Savings (direct deposits):** Always live in your main wallet address (account 0). * **Borrow/Multiply positions:** Each new position is opened in its own sub-account (account 1, 2, 3, etc.), which is a unique address linked to your wallet. Each sub-account address is almost identical to your main wallet address—they share the first 19 bytes, and only the very last byte is different. This means you can easily recognize your sub-accounts on the blockchain: they'll look just like your main address, except for the final two characters. You don't need to manage these addresses yourself — Euler handles it all for you. But if you ever want to see exactly where your assets are, you can look up your main address and its sub-accounts on the blockchain. This system helps keep your positions organized and your risk isolated. Take time to explore each tab and click on individual vaults or pairs to see detailed views (like the Vault Details and Position Details pages shown in the screenshots). Pay attention to tooltips and information icons. With your wallet connected and a basic understanding of the interface, you are ready to explore [supplying](./supplying-assets) assets or opening [borrow](./borrowing-assets)/[strategy](./multiply-strategies) positions. Refer to the specific guides for detailed steps. ### Additional Resources * For more detailed guides, check out the [User Guide Index](index). * If you encounter any issues, refer to the [Troubleshooting](troubleshooting) section. ## User Guide This site contains user guides for interacting with the Euler V2 protocol via the official app ([app.euler.finance](https://app.euler.finance/)). Navigate through the sections using the menu to learn about: * **[Getting Started](getting-started):** Connecting your wallet and understanding the basic interface. * **[Supply (Savings)](supplying-assets):** How to lend assets directly and earn yield. * **[Borrow](borrowing-assets):** Understanding how to open and manage borrow positions. * **[Multiply](multiply-strategies):** Leveraging your positions using automated strategies. * **[EulerSwap](euler-swap):** Providing liquidity on EulerSwap. * **[Euler Earn](euler-earn):** An overview of Euler Earn. * **[Portfolio](portfolio):** Tracking your positions, savings, and rewards. * **[Positions](managing-positions):** Understanding how to manage your positions * **[Batch](batch-transactions):** Using the batch feature for efficient multi-step actions. * **[Spy Mode](spy-mode):** Viewing other users' positions. * **[Troubleshooting](troubleshooting):** Common issues and solutions. Feel free to explore these guides to enhance your understanding and experience with Euler V2. If you have any questions or need further assistance, please refer to the [Troubleshooting](troubleshooting) section. ## Liquidation **Liquidation** is a core part of how Euler keeps the protocol safe for everyone. If you're borrowing or using leverage, understanding liquidation is essential—not just to avoid it, but to manage your risk and make smart decisions. ### What is Liquidation and Why Does it Matter? Liquidation is the process that protects the protocol and its users when a position becomes too risky. If the value of your collateral drops, or the value of your borrowed asset rises, your position can become undercollateralized. When this happens, the protocol allows others (liquidators) to step in, repay some or all of your debt, and claim a portion of your collateral at a discount. This mechanism ensures that lenders remain protected and the protocol stays solvent. #### How Liquidation Works on Euler Every borrow or multiply position on Euler is tracked by a health score. This score is a quick way to see how safe your position is: the higher, the better. If your health score drops to 1 or below, your position becomes eligible for liquidation. This can happen for a few reasons—maybe the market moved against you, your collateral lost value, your borrowed asset gained value, or interest accrued and pushed you over the edge. When a position is eligible, anyone can act as a liquidator. They repay part (or all) of your outstanding debt and, in return, receive some of your collateral at a discount. The protocol calculates exactly how much collateral is seized, based on the liquidation discount and the amount of debt repaid. After liquidation, any remaining collateral stays in your position, and your debt is reduced by the amount the liquidator repaid. If your position is still above the liquidation threshold, you're safe again. If not, it can be liquidated further until it's healthy or all collateral is gone. The process is handled automatically by the protocol's smart contracts, with the Ethereum Vault Connector (EVC) ensuring that only eligible positions can be liquidated and that all transfers are handled securely. ### What Happens After Liquidation? If your position is liquidated, you don't lose everything. Only enough collateral is taken to cover the debt repaid by the liquidator (plus the discount). Any leftover collateral remains in your account. You can continue to use your position, add more collateral, or repay debt to improve your health score and avoid further liquidations. ### How to Avoid Liquidation ![Figure 1: Position health display](/img/user-guide/liquidation.png) **Figure 1:** Snippet of a user's position displaying its health The best way to avoid liquidation is to keep your health score well above 1. Regularly check your positions in the Portfolio section of the app. If your health score starts to drop, consider adding more collateral or repaying some of your debt. Maintaining a healthy buffer between your current LTV and the liquidation threshold gives you more room to weather market swings. Diversifying your collateral, using less volatile assets, and staying informed about market conditions can also help reduce your risk. Remember, interest rates can change, and so can the value of your assets—so keep an eye on your positions and act early if things start to look risky. If you want extra peace of mind, set up notifications or use third-party tools to alert you when your health score drops below a certain level. And always make sure you understand the risks before taking on leverage or borrowing against your assets. ### How is the Liquidation Discount Calculated? When a position on Euler becomes eligible for liquidation, liquidators are incentivized to act by being able to purchase collateral at a discount. This "liquidation discount" is not a fixed value—it scales with how unhealthy the position is. The deeper a position falls below the liquidation threshold (i.e., the lower its health score drops below 1), the larger the discount a liquidator receives. This means that if a position is only slightly in violation, the discount is small, but if it's deeply undercollateralized, the discount increases—up to a maximum set by the vault's configuration. This system is known as a "reverse Dutch auction." It ensures that liquidations are fair: positions that are only slightly unhealthy aren't penalized excessively, while those that are riskier offer a greater incentive for liquidators to step in quickly. For those interested in the technical details, the discount is calculated based on how far the account's health score has fallen below 1, and the vault's maximum liquidation discount setting. This approach helps protect both borrowers and the protocol, ensuring liquidations are efficient and fair. ### Want to Be a Liquidator? Liquidation isn't just a risk—it's also an opportunity. Anyone can act as a liquidator on Euler. If you spot a position that's eligible, you can repay its debt and claim collateral at a discount. This helps keep the protocol healthy and can be profitable if you act quickly and manage your own risks. For those interested in automated liquidation, Euler provides an open-source liquidation bot ([liquidation-bot-v2](https://github.com/euler-xyz/liquidation-bot-v2)) that can help monitor and execute liquidations efficiently. *** Liquidation is a fundamental part of how Euler works. By understanding it, you can better protect your positions, avoid unnecessary losses, and even participate in keeping the protocol safe for everyone. ## Multiply (Strategies) ![Figure 1: The Strategies page of Euler](/img/user-guide/general/strategiesGeneral.png) **Figure 1:** The Strategies page of Euler Multiply strategies (also known as "Strategies") allow you to create leveraged positions with just a few clicks. These strategies automate the process of creating leveraged positions by combining supply, borrow, swap actions, and redeposit in a single transaction. ### What are Multiply Strategies? Multiply strategies on Euler allow you to instantly create a leveraged position with a single transaction. When you choose your desired leverage (multiplier) or target LTV, Euler automatically calculates and executes all the necessary steps — borrowing, swapping, and re-supplying — so you immediately reach your chosen multiplier level. #### Key Benefits * **Capital Efficiency:** Achieve greater exposure than your initial capital allows * **Amplified Yields/Returns:** Potential for higher returns (but also higher losses) * **Simplified Leverage:** Automates the complex looping process #### Key Risks * **Increased Liquidation Risk:** Leverage magnifies losses. A smaller adverse price movement can lead to liquidation compared to a simple borrow position * **Interest Rate Risk:** Changes in supply or borrow APYs can affect profitability * **Smart Contract Risk:** Standard risk associated with DeFi protocols * **Amplified Effects**: Price impact and slippage can be amplified depending on how leveraged you are ### Finding Strategies The "Strategies" tab in the Euler app ([app.euler.finance/strategies](https://app.euler.finance/strategies)) lists available multiply strategies. 1. **Navigate:** Go to the "Strategies" tab. 2. **Browse Strategies:** Each strategy card displays: * **Market:** The market name (e.g., Euler Prime) * **Asset Pair:** The collateral and debt assets (e.g., USDC / WBTC) * **Max ROE:** The maximum potential Return on Equity for the strategy * **Points:** Whether the strategy earns points (if applicable) * **Rewards:** Whether the strategy is eligible for rewards (if applicable) * **Max Multiplier:** The highest leverage multiplier available for this strategy * **Correlated:** Whether the assets are correlated (Yes/No) * **Liquidity:** The available liquidity for the strategy, shown in both USD and asset units 3. **View Details:** Click "View details" to see more information and open a position. :::note Each APY value is inclusive of intrinsic yield (e.g., staking yield) and available rewards campaigns. Hover over the value for a breakdown. ::: :::tip Strategies are sorted based on the Max ROE and liquidity. ::: ### Understanding the Borrow/Multiply Position Page When you select a strategy, you're taken to a detailed page that is shared by both Multiply and Borrow actions. The only difference is the form shown, depending on whether you select "Multiply" or "Borrow" at the top. **Key Metrics and Sections:** * **Overview:** At the top, you'll see the collateral and debt assets, the market, and a summary of key metrics. * **Key Metrics:** These include: * **Supply APY:** Yield for supplying the collateral asset. * **Borrow APY:** Cost (or reward) for borrowing the debt asset. * **Max ROE:** Maximum potential Return on Equity. * **Max Multiplier:** Highest leverage available for this pair. * **LLTV:** Liquidation Loan-to-Value ratio. * **Liquidity:** Available liquidity for borrowing, in both USD and asset units. * **Oracle Section:** This section shows which price oracle is used for the pair, providing transparency on how prices and risk are determined. * **Tabs for Collateral and Debt:** You can switch between the "Collateral" and "Debt" tabs to see more details about each vault, including risk parameters, governor, exposure, utilization, and more. :::tip The same page is used for both Multiply and Borrow. Simply select the desired action at the top to switch between the two forms. ::: ### Opening a Multiply Position Opening a Multiply position happens on the Position Details page, similar to opening a Borrow position, but using the "Multiply" tab. 1. **Select Action:** Ensure the "Multiply" tab is selected on the position details interface 2. **Supply Margin Collateral:** Enter the amount of the collateral asset you wish to start the position with 3. **Set Multiplier:** Use the slider to choose your desired level of leverage (multiplier) for the position 4. **Review Multiply Details:** Carefully review the transaction simulation: * **Multiplier:** The leverage level you selected * **ROE:** Estimated net yield or return. Click the ⚙️ to adjust calculations * **Current Price:** The current price of the collateral or debt asset * **Liquidation Price:** The estimated price at which your position risks liquidation * **Your LTV (LLTV):** The LTV your position will open at and the LLTV associated with the position * **Your Health:** Your initial health score * **Swap:** The estimated swap amounts * **Price Impact:** The estimated price impact for the swap * **Leveraged Price Impact:** The estimated price impact for the swap with leverage calculated for * **Slippage Tolerance:** The maximum slippage allowed for the swap before it reverts. Click the ⚙️ to adjust the tolerance * **Routed Via:** The aggregator the swap will route through * **Estimated Gas Fee:** The estimated cost of your transaction 5. **Open Position:** After all the details look good, click "Open position" (or "Add to batch") and confirm in your wallet. 6. **Approve (if necessary):** If this is your first time using a particular asset as collateral, you will need to approve the Euler smart contracts to interact with your collateral token. Euler uses Permit2 by default for token approvals, which allows for more gas-efficient approvals and revocations. You can disable Permit2 usage in the settings if preferred. If your wallet supports EIP-7702, it will be automatically detected and approvals will be batched with the multiply transaction, eliminating the need for a separate approval transaction or message signature. :::note The ROE in the transaction summary takes into account the impact your position has on the vaults, reflecting where the new interest rates will be at. This does not consider impact on rewards. ::: :::tip You can either supply directly by clicking "Open position" or use "Add to batch" if you want to build a more complex transaction (for example, batching multiple actions together before submitting). Batching can help save on gas and streamline your workflow when performing several actions at once. ::: #### Understanding the Swap Summary ![Figure 2: Transaction summary in the multiply form](/img/user-guide/multiplyForm.png) **Figure 2:** Transaction summary in the multiply form Before executing a transaction, it is best to review the transaction summary to make sure you are comfortable with the swap. :::note This section can also be used for other areas of the app where a swap is needed (e.g., repaying with collateral) ::: ##### Slippage When swapping between tokens, prices could shift between Token A and Token B, resulting in different amounts being received than what was being initially calculated. This could be positive or negative, but on Euler, the UI will not consider positive slippage as it will be just for your gain. However, the UI allows you to set the slippage tolerance if it goes negative before the transaction reverts. For example, if you got a quote to swap 100 of Token A for 200 of Token B, a 1% slippage could result in either receiving 202 or 198 of Token B. If the tolerance was set to 1%, receiving less than 198 of Token B will revert the transaction. ##### Price Impact DEXes are coded in such a way that the price you receive for your token depends on the size of the trade. As a result, larger swaps may result in worse prices. Price impact, however, is not exclusive to DeFi, but exists in traditional finance when trading stocks or currencies in size. For example, if the current trading price of ETH is 4000 USDC and you wanted to buy 1000 ETH, it cannot be reasonably expected you will pay at that price, but instead at a higher price. Instead of paying 4M USDC for that 1000 ETH you might pay 4.1M USDC: a 2.5% price impact (100K/4M). Despite this, price impact can be positive. This is possible because it is difficult to say what the real market price of an asset is at any given moment. Market prices are sourced from various sources like CoinGecko or DefiLlama, but accuracy may still vary for various reasons. Additionally, both tokens need to be priced in USD terms which can amplify the inaccuracies or desynced prices. In short, it's possible a trade on DEX can actually give a better price than what other sources think the market price is. **Leveraged price impact** is the impact counted on the margin (as opposed to the notional) value of your position. For example, let's say you deposit 100 USDT into a USDT/USDC strategy at 10x leverage. Your margin is 100 USDT, but the traded amount will be 900 USDC sold for USDT (10x leveraged position will be the 1000 USDT / 900 USDC). 900 is the notional size. If the trade has a 1% price impact, the cost of the trade would be $9, which is the 9% of the deposited amount. This is the leveraged price impact. ### Managing Your Multiply Position Multiply positions appear alongside Borrow positions under the "Positions" tab in your "Portfolio". #### Monitoring * Regularly check the **Health Score** and **Liquidation Price** * Leveraged positions require closer monitoring due to increased risk * Monitor the APYs of both your collateral and debt assets, as changes can significantly impact your position's profitability #### Available Actions * **Multiply:** Increase your position's multiplier by borrowing more debt against your collateral * **Repay:** Reduce the multiplier by partially unwinding the loop or fully unwind the loop and repay all debt * **Supply Collateral:** Supply more collateral directly to the position account * **Withdraw Collateral:** Withdraw excess collateral if the position is significantly overcollateralized Management actions are complex transactions involving multiple steps. Always understand the implications before confirming. ## Understanding Your Portfolio ![Figure 1: The Portfolio page on Euler](/img/user-guide/portfolioHeader.png) **Figure 1:** The Portfolio page on Euler The "Portfolio" tab in the Euler app ([app.euler.finance/portfolio](https://app.euler.finance/portfolio)) serves as your central dashboard, providing a comprehensive overview of your activity, assets, debts, and rewards within the protocol. ### Portfolio Overview Header At the top of the Portfolio page, you'll find a summary of your overall financial standing on Euler: * **Your Rewards:** The total estimated value of rewards currently available for you to claim. * **Your Debt:** The total value of assets you have borrowed across all your borrow/multiply positions. * **Your Supply:** The total value of assets you have supplied, including both direct lending (Savings) and collateral within positions. * **Net Asset Value (NAV):** Your overall net worth within the Euler protocol (Total Supply - Total Debt). ### Portfolio Tabs The Portfolio section is organized into three distinct tabs #### Positions ![Figure 2: Multiple positions on the Portfolio page](/img/user-guide/positions.png) **Figure 2:** Multiple positions shown on the Portfolio page on Euler This tab displays all your active **Borrow** and **Multiply (Strategy)** positions. Each position represents an isolated account (position 1, 2, 3...) where you have supplied collateral and borrowed assets. For each position listed in the main view, you can see: * **Assets:** The collateral and debt assets involved (e.g., USDC / WETH). * **Net Asset Value (NAV):** The net value of the assets within that specific position (Collateral Value - Debt Value). * **Your ROE (Return on Equity):** An estimated return based on the position's performance. * **Multiplier:** The level of leverage applied (primarily for Multiply positions). * **Health Score:** A crucial metric indicating the position's safety against liquidation (higher is generally safer). * **Current Price:** The oracle price for the asset pair. * **Liquidation Price:** The estimated price at which the position becomes eligible for liquidation. * **Actions:** A button like "View position" to navigate to the detailed management page for that specific position. ##### Position Details View Clicking "View position" takes you to a detailed page for managing that specific position. This view includes: * **Position Risk:** * **Health Score:** Current health score. * **Time to Liquidation:** An estimate based on current conditions. * **Your LTV:** The position's current Loan-to-Value ratio. * **Your LLTV:** The Liquidation LTV threshold for this position. * **LTV Slider:** A visual representation of the current LTV relative to the Liquidation LTV. * **Borrow Section:** * Details of the borrowed asset (Governor (Risk Curator), Market Value, Borrow APY, Current Price, Liquidation Price). * Action buttons like "Repay", "Multiply" (take on more leverage), or "Borrow" (more of the same asset). * **Collateral Section:** * Details of the collateral asset (Governor (Risk Curator), Market Value, Supply APY, Current Price, Liquidation Price, LLTV). * Action buttons like "Supply" (more collateral), "Withdraw" (excess collateral), "Collateral swap", "Transfer" (of collateral shares), or "Disable collateral". This detailed view is where you perform specific management actions like adding/removing collateral or repaying debt for an individual position. #### Savings ![Figure 3: Multiple Savings on the Portfolio page](/img/user-guide/savings.png) **Figure 3:** Multiple Savings shown on the Portfolio page on Euler This tab shows assets you have supplied directly for **lending/earning yield**, separate from any collateral in your borrow/multiply positions. These assets reside in your primary Savings account (position 0). For each asset supplied to Savings, you can see: * **Asset:** The token supplied (e.g., USDC, WETH). * **Your Supply:** The amount of the asset you have deposited. * **Supply Value:** The current market value of your supplied amount. * **Supply APY:** The current annual percentage yield being earned on this deposit. * **Exposure:** Information on how the supplied assets might be utilized within the protocol. * **Actions:** Buttons to "Supply", "Withdraw", "Savings swap", or "Transfer" (of saving shares). :::info **Key Distinction** Assets in Savings earn yield, but **do not** collateralize your borrow/multiply positions. The asset needs to be enabled for collateral and must be supplied *within* each specific position account which the UI handles automatically when opening a new position. ::: #### Rewards This tab lists any rewards you have earned through using incentivized vaults on Euler that are ready to be claimed. * **Claimable Tokens:** Shows the different reward tokens available and the amount claimable for each. * **Market Value:** The estimated market value of the claimable rewards. * **Claim Buttons:** Buttons to initiate the transaction to claim specific rewards or "Claim all" to claim multiple rewards at once. :::note It can take 8-12 hours for Merkl to calculate the rewards you've earned. ::: **Reward EUL (rEUL)** If you claimed any rEUL, it will be listed with the following: * **Amount:** The amount rEUL that was claimed * **Accrued Amount:** The total accrued amount of EUL * **Maturity Date:** The maturity date when rEUL will allow you to unlock without penalty. For more information about rEUL, check out [**Reward EUL**](../EUL/reward-eul) *** Regularly checking your Portfolio page is essential for monitoring the health of your positions, tracking your savings yield, and claiming earned rewards. ## Spy Mode **Spy mode** is an advanced feature that allows you to view the Euler app through the lens of another user. This feature is particularly useful for observing other users' positions, understanding their strategies, or analyzing their portfolio composition. ### How to Activate Spy Mode To activate spy mode, simply add `?spy=
` to the end of the URL in your browser. For example: ``` https://app.euler.finance/portfolio?spy=0x1234... ``` Replace `
` with the Ethereum address of the user you want to spy on. ### What You Can See in Spy Mode When in spy mode, you can view: * The user's portfolio overview, including their total supply, debt, and rewards * Their active positions, including borrow and multiply strategies * Their savings and collateral allocations * Their claimed and unclaimed rewards This feature is read-only, meaning you can observe but cannot interact with or modify the user's positions. ### Use Cases for Spy Mode * **Learning from Others:** Observe how experienced users structure their positions and manage their portfolios. * **Strategy Analysis:** Analyze the strategies employed by users to inform your own decisions. * **Market Research:** Gain insights into how other users are utilizing the protocol and which assets are popular. ## Troubleshooting If you encounter a bug or error while using the Euler app, follow these steps to troubleshoot and resolve the problem: ### Common Errors On Euler, there are various checks to ensure the system works as expected. In some cases, you may encounter one of those checks and see an error when trying to use Euler. Below are a list of common errors and what they mean to better understand what is going on. #### `E_AccountLiquidity` This error is thrown when your account is above the position's max LTV (loan-to-value). In order to clear this error, you will need to bring your position's LTV below the max LTV. For example, if a pair has a max LTV of 80%, but over time your position drifted to 83%, you may encounter this error if you try to perform an action while not bringing the LTV below 80%. :::note Max LTV is not the same as LLTV (liquidation loan-to-value). Your position is considered healthy as long as it is under the LLTV. ::: #### `E_InsufficientCash` This error is thrown when you're trying to withdraw more assets than there are in the vault. This can also happen if you're trying to: * repay with collateral and there isn't enough liquidity in the collateral vault * open a borrow/multiply position and there isn't enough liquidity in the debt vault In order to clear this, you have to reduce the amount to be under the "Available Liquidity" or wait for liquidity to free up. You can check a vault's available liquidity by going to the respective vault page within the Overview section. #### `E_RepayTooMuch` This error is thrown when you're trying to repay your position, but you repay more than what's necessary. In order to clear this, either repay the max amount (click "Max" in the form) or pay below the total debt you owe. #### `E_SupplyCapExceeded` and `E_BorrowCapExceeded` These errors are thrown when the vault you're trying to lend or borrow are at their caps. In order to clear this, you may need to reduce the amount to lend or borrow to be under the caps or wait for the respective curator to increase caps. #### Multiple Wallet Extensions Active Sometimes, when you have multiple wallet extensions active on your browser this can cause several conflicts. This can lead to unexpected behavior such as being unable to sign off on a transaction. This issue can be alleviated by disabling all the other wallet extensions you're not using. You may need to refresh the page after disabling these extensions. #### RPC Issues When the RPC your wallet is using goes down, this may result in transactions never being submitted onchain. If this is the case, you can try changing RPCs. You can find a list of available RPCs through [chainlist.org](https://chainlist.org/) or using another RPC you trust. #### EIP-7702 Unsupported Some wallets have implemented EIP-7702, a way to batch multiple operations into a single transaction. However, certain wallets may not support it or the connected wallet hasn't been upgraded to support it. If using EIP-7702 is unsupported for your wallet, you can go to the [**User Settings**](https://app.euler.finance/settings) page by clicking your address on the top right and going to "User Settings," then scrolling down to disable "EIP-7702 batch calls." ### Basic Troubleshooting Steps 1. **Clear Your Batch:** * Clearing the actions in your Batch may help remove a problematic action that prevents you from being able to use Euler. * Open the Batch by clicking the button on the top-right. If there are actions, click the trash can icon at the bottom of the Batch. 2. **Reconnect Your Wallet:** * Disconnect and reconnect your wallet to refresh the connection and potentially resolve any wallet-related issues. This may be relevant if the app isn't sending a transaction request to your wallet. 3. **Check for Errors in the Developer Console:** * Open your browser's developer console (usually accessible via **F12 or right-click > Inspect > Console**). * Look for any error messages or warnings that might provide clues about the issue. 4. **Clear Local Storage and Cookies:** * This can resolve issues related to cached data or corrupted local storage. * Instructions for clearing local storage and cookies vary by browser, but generally involve accessing the browser's settings or developer tools. 5. **Verify Transaction Details:** * If the issue involves a transaction, check the transaction hash on a blockchain explorer (like Etherscan) to see if it was successful or if there were any errors. ### Reporting Issues If the issue persists after trying the above steps, please open a support ticket on Discord ([discord.euler.finance](https://discord.euler.finance)) with the following information: * **Action:** Explain in detail what you're trying to achieve and what issues you've run into. * **Wallet Address:** Your Ethereum wallet address. * **Network:** The network you're using. * **Screenshots:** Upload any relevant screenshots of the issue. * **Transaction Hash:** If applicable, include the transaction hash for any failed, problematic, or relevant transactions. * **Errors in Developer Console:** Any error messages or warnings you observed. You can pull this up by clicking **F12 > Console** or **Right-Click > Inspect > Console**. Take a screenshot of this section and attach it to your ticket. import { Video } from '../../components/Video' ## Managing Positions Managing your positions effectively is crucial for maximizing returns and minimizing risks on Euler. This guide provides tips and best practices for managing your positions. ### Why Manage Your Positions? Effective position management helps you: * Maintain a healthy position to avoid liquidation * Monitor and optimize your returns * Respond to market changes and interest rate fluctuations Regular monitoring of your positions is essential, especially for leveraged positions where changes in APYs or prices can significantly impact your returns. A positive net APY means your position is profitable, while a negative net APY indicates you're paying more in borrowing costs than you're earning from supplying assets. ### Managing Savings Positions For your savings (supplied assets), you have several options available in the UI: #### Basic Actions * **Supply:** Add more assets to your savings position to increase your yield * **Withdraw:** Remove assets from your savings position * **Savings Swap:** Exchange your current savings for a different asset while maintaining your position * **Transfer:** Transfer your savings shares to another account