Euler V2

Euler v2 is the lending protocol from the original team behind Euler Finance, rebuilt from the ground up to be fully modular, more gas-efficient, and tailored for composability in modern DeFi environments.

The protocol launched in early 2024, and focuses on giving developers and users powerful tools to build lending markets that are easy to integrate into apps along with maximum customization. Unlike traditional lending protocols, Euler V2 emphasizes modularity and user-chosen market risk.

Some of the unique aspects of Euler v2 include:

• Permissionless market creation, meaning that any asset can be listed on Euler v2 through isolated risk markets. This allows more niche assets to be onboarded safely, with risk confined to that specific market.

• Unlike traditional pooled lending protocols, Euler v2 emphasizes risk isolation. If one market becomes unhealthy, it doesn’t endanger others, which is ideal given the volatile nature of niche/new tokens.

• Liquidations in v2 are more gas-efficient and flexible. Euler supports custom liquidation logic, enabling new strategies like partial liquidations or off-chain oracle integrations.

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Related Articles:

• Dashboard & Use-case

• Available assets & compatibility

• EKV (Euler Vault Kit)

• EVC (Ethereum Vault Connector)