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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 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). 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 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 assets or opening borrow/strategy positions. Refer to the specific guides for detailed steps.

Additional Resources