Euler vaults

Euler is a modular, decentralised lending protocol built from independent vaults. Each vault lends one asset, such as USDC, under its own settings, and vaults can accept deposits in other vaults as collateral, so curators can build anything from isolated pairs to multi-asset lending markets. Euler v2 launched in September 2024 and runs on Ethereum, Base, Arbitrum, Avalanche, BNB Chain, Monad, Plasma and other networks.

Vault types. Governed vaults are managed by a governor or risk curator who can change accepted collateral, loan-to-value limits, caps, oracles and fees. Ungoverned vaults keep fixed parameters, and escrow vaults only hold collateral and earn no interest. Euler Earn vaults take one asset and allocate it across Euler lending vaults and other strategies chosen by their curator. Euler vault yields come from the interest borrowers pay, minus any interest fee set by the vault's governor; Euler protocol fees have been zero since April 2026.

Withdrawals and risks. Deposits are not principal-protected: a vault can lose value through bad debt, oracle failure, smart contract failure or configuration changes, and withdrawals are limited to liquidity that borrowers have not taken, so high utilisation can delay them. Isolation contains losses rather than preventing them: when Stream Finance, which had borrowed much of the liquidity on Euler's Plasma deployment, defaulted in late 2025, Euler Labs' Q1 2026 review reported that the Plasma deployment was effectively wiped out, while Euler's DAO-managed markets had no direct exposure.

History. Euler v1 was exploited for about $197 million in March 2023, and all stolen funds were recovered within three weeks after negotiations with the attacker. Euler v2 is a new codebase rebuilt from the ground up, and Euler publishes its security review and audit record.