What Is Euler?
Euler Finance is a self-custodial, permissionless decentralised finance lending protocol built on Ethereum, enabling users to lend and borrow a wide range of long-tail crypto assets with flexible collateral options and market-leading risk-adjusted rates. Launched in 2021 and redesigned as Euler V2 following a significant exploit, the protocol emphasizes modularity, security, and capital efficiency, allowing any asset to serve as collateral for lending markets. It operates as a “DeFi super app” with features like isolated lending pools and advanced risk management, positioning it as a second-generation platform for efficient borrowing and lending in the crypto ecosystem.
The Euler Vault Kit (EVK) is a core component of Euler V2, providing a modular framework for developers to create customizable credit vaults — extended ERC-4626 compliant vaults that add borrowing functionality to passive lending pools. EVK enables permissionless, composable lending markets by handling base authentication, vault access logic, and operations, while integrating with the Ethereum Vault Connector (EVC) for enhanced interoperability and yield generation through external strategies. This toolkit empowers builders to tailor vaults for specific assets or risk profiles, fostering a broader modular lending ecosystem within DeFi.
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