TL;DR
- Euler launches v2 of its DeFi protocol with a modular design for highly customizable lending and deposit vaults.
- The new version, following a year of development and audits, supports a wide variety of digital assets and allows for flexible risk management.
- v2 introduces the capability to use deposits from other vaults as collateral and enhances platform security.
Euler makes a strong move in the DeFi market with the launch of v2 of its protocol, crucial for on-chain lending. This new version stands out for its modular design, enabling developers to create highly customizable lending and deposit vaults that overcome the limitations of traditional DeFi protocols.
Euler v2 has been launched after a year of meticulous development and extensive security audits. It represents a significant advance in modularity within the DeFi sector. Unlike v1, which was tailored to specific use cases, the new version has been reimagined as a meta-lending protocol.
1/ Euler v2 is live.
Lend, borrow and build without limits. pic.twitter.com/lmxiPcfi6P
— Euler Labs🛢️🇬🇧 (@eulerfinance) September 4, 2024
This means the protocol is designed to support a wide range of on-chain credit applications, facilitating the creation of vaults that can manage virtually any type of digital asset, from fungible tokens and tokenized real-world assets to non-fungible assets.
The new protocol introduces unprecedented flexibility by allowing vault creators to set customized risk and reward parameters. Users can choose between vaults with active governance for more controlled risk management or governance-free options to manage their own risks. Vaults are implemented using the Euler Vault Kit (EVK) and connected via the Ethereum Vault Connector (EVC), facilitating interoperability between different vaults within the Euler ecosystem.
Euler Emphasizes Security After Losing Nearly $200 Million in a Hack
A distinctive feature of v2 is its ability to recognize deposits in other vaults within the ecosystem as collateral. This innovative functionality provides greater utility to existing deposits and helps generate a ready user base for new funds, optimizing liquidity within the system.
The launch of Euler v2 also comes in response to the security challenges faced by the previous version. In March 2023, the protocol was the victim of an attack that resulted in the loss of $197 million in crypto assets. Following the incident, the platform implemented rigorous security measures, including 31 audits and several audit competitions, to ensure that the new version is resilient to future attacks.
Euler v2 aims to offer new opportunities in terms of designing on-chain credit markets. It also sets a new standard in risk and reward management within the DeFi sector.
