It’s official. Euler is relaunching! Today, we’re excited to unveil Euler v2— The Modular Lending Platform. Check out the Lite paper or read on below to find out more.
Introduction
Euler V2 is modular lending infrastructure for teams that want to create credit markets, vault products, and lending applications without rebuilding the core protocol stack from scratch.
It gives builders the primitives to define how a market works: which assets are supported, how collateral is valued, how borrowing is priced, how liquidations work, which vaults can connect, and who can operate each part of the system.
That makes Euler V2 more than a lending protocol. It is a foundation for launching new credit products onchain.
Build the Market You Need
Most lending protocols make builders accept a fixed design.
Euler V2 gives market creators control over the structure itself.
With the Euler Vault Kit, builders can launch ERC-4626 lending vaults with configurable collateral rules, borrow and supply caps, oracle inputs, interest rate models, liquidation settings, governance paths, and operating roles.
A market can be isolated around one asset. It can connect to selected collateral vaults. It can support curated allocation products, tokenized assets, institutional workflows, or automated lending strategies.
The design is not locked to one model.
Connect Vaults Without Merging Risk
Euler V2’s second core primitive is the Ethereum Vault Connector.
EVC lets selected vaults recognize one another as collateral, coordinate account checks, delegate scoped permissions, and batch multi-step actions.
This is the key difference: Euler markets can compose without forcing every asset into one shared risk pool.
Builders can create collateral relationships where they make sense, keep exposure scoped where it matters, and design markets around the actual risk profile of the asset.
What Euler V2 Enables
Euler V2 can support a wide range of credit products.
Single-Asset Lending Markets
Launch a market around one asset with defined collateral, borrow limits, pricing, oracle, and liquidation rules.
Curated Vault Markets
Set the vaults, parameters, collateral rules, and exposure limits for a curator-led market.
Multi-Asset Credit Markets
Connect selected collateral and borrow assets while keeping exposure scoped to defined vaults.
Tokenized Asset Markets
Create lending markets for tokenized assets with asset-specific collateral, liquidity, pricing, and access controls where required.
Custom Credit Applications
Build lending apps, Earn vaults, agent workflows, embedded borrowing, automated repayment flows, and other credit products on top of Euler’s vault and account infrastructure.
Built for the Next Credit Products
Euler V2 is designed for the teams pushing lending beyond generic borrow and supply markets.
Curators can launch markets with explicit roles, parameters, caps, queues, and update paths.
Integrators can build applications on top of Euler using ERC-4626 vaults, SDKs, APIs, and structured documentation.
Institutions can design markets around defined collateral, operating roles, participant sets, and risk parameters.
Agents and automation systems can read market state, evaluate vault rules, and execute scoped lending actions through EVC permissions and batching.
Euler V2 gives each of these products the same underlying foundation: configurable vaults, composable collateral, scoped account control, and programmable execution paths.
Why Modularity Matters
Onchain credit is not one market.
Stablecoin lending, long-tail asset lending, tokenized asset credit, treasury liquidity, automated vault products, and institutional markets all need different risk settings.
A single shared pool cannot fit every asset. Fully isolated markets can limit composability and fragment liquidity.
Euler V2 sits between those extremes.
Vaults define their own rules. EVC defines how selected vaults and accounts interact. Hooks and external logic can add product-specific checks where needed.
That gives builders a more powerful design space: markets that are configurable, composable, and risk-scoped by construction.
A Credit Layer, Not Just a Market
Euler V2 is not just a place to lend and borrow.
It is infrastructure for creating lending markets, vault products, and credit applications that can be configured around specific assets, users, and use cases.
EVK defines the vault.
EVC connects the account layer.
Hooks extend the execution path.
Developer interfaces make the system easier to integrate.
Together, these primitives make Euler V2 the credit layer for programmable finance.
To join us on this journey, please see our lite paper here, and more technical white paper here. Happy building.
This content is brought to you by Euler Labs, which wants you to know a few important things.
This piece is provided by Euler Labs Ltd. for informational purposes only and should not be interpreted as investment, tax, legal, insurance, or business advice. Euler Labs Ltd. and The Euler Foundation are independent entities.
Neither Euler Labs Ltd., The Euler Foundation, nor any of their owners, members, directors, officers, employees, agents, independent contractors, or affiliates are registered as an investment advisor, broker-dealer, futures commission merchant, or commodity trading advisor or are members of any self-regulatory organization.
The information provided herein is not intended to be, and should not be construed in any manner whatsoever, as personalized advice or advice tailored to the needs of any specific person. Nothing on the Website should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any asset or transaction.
This post reflects the current opinions of the authors and is not made on behalf of Euler Labs, The Euler Foundation, or their affiliates and does not necessarily reflect the opinions of Euler Labs, The Euler Foundation, their affiliates, or individuals associated with Euler Labs or The Euler Foundation.
Euler Labs Ltd. and The Euler Foundation do not represent or speak for or on behalf of the users of Euler Finance. The commentary and opinions provided by Euler Labs Ltd. or The Euler Foundation are for general informational purposes only, are provided "AS IS," and without any warranty of any kind. To the best of our knowledge and belief, all information contained herein is accurate and reliable and has been obtained from public sources believed to be accurate and reliable at the time of publication.
The information provided is presented only as of the date published or indicated and may be superseded by subsequent events or for other reasons. As events and markets change continuously, previously published information and data may not be current and should not be relied upon.
The opinions reflected herein are subject to change without being updated.