Euler
score
Fees: Rates per vault; governance/vault fees may apply
Euler fits advanced users drawn to its flexible v2 architecture who weigh the innovation against a serious prior exploit. Although funds were recovered, the incident is a material part of its record. Nothing here is financial advice.
What Euler Is
Euler is a decentralized lending protocol whose relaunched v2 is built on the Euler Vault Kit, a modular architecture that lets developers spin up flexible, permissionless lending markets with customizable risk parameters. Founded in 2021, Euler is best known for two things: an innovative, highly configurable design, and a major exploit in March 2023 from which funds were ultimately recovered. The current v2 is the rebuilt version that carries that architecture forward with fresh audits and a large bug bounty.
How It Scores on the Criteria
Euler earns 6.8, a score shaped by one clear weakness. Rates are its strongest dimension at 8, reflecting competitive, customizable per-vault pricing, and collateral and risk management (7.5) is respectable given the granular, per-vault parameters. Transparency and track record (7) is fair, helped by a candid post-mortem. The dominant drag is security and audits at 5.5 — a direct reflection of the 2023 exploit, which weighs heavily even though the protocol has since been re-audited. Liquidity (6.5) is thinner than the largest money markets.
Costs and Fees
Costs on Euler are set per vault rather than by a single protocol-wide curve, so borrow and supply rates depend on the specific vault and its parameters, and governance or vault-level fees may apply. This modularity is what enables the competitive, tailored rates we score highly, but it also means users should read each vault's configuration — collateral, oracle, and rate settings can differ meaningfully from one market to the next. Network gas applies on top.
The Main Caveat
The overriding caveat is the March 2023 flash-loan exploit of roughly $200M. Notably, the funds were later returned, and Euler handled the aftermath with a transparent post-mortem, but the incident remains a material part of its record and is the reason its security score is low. Compounding this, the rebuilt v2 has a comparatively short live track record post-relaunch, and liquidity is thinner than at the largest venues, so both the history and the maturity of the current system deserve weight.
Who It's For
Euler fits advanced users drawn to the flexibility of its v2 architecture who are willing to weigh that innovation against a serious prior exploit and a shorter post-relaunch history. It rewards those comfortable evaluating individual vaults and their parameters rather than relying on a single default market. More conservative users, or those who prioritize an unblemished security record and deep liquidity, will likely prefer a more established protocol. Nothing here is financial advice.
Overall 6.8 / 10 — the weighted average of the criteria above. How we score →
- + Innovative modular v2 (Euler Vault Kit) enabling flexible, permissionless lending markets
- + Competitive rates and customizable risk parameters per vault
- + Transparent post-mortem and full recovery of funds after its 2023 exploit
- + Multiple audits and a large bug bounty on the relaunched protocol
- − Suffered a ~$200M flash-loan exploit in March 2023 (funds were later returned)
- − Rebuilt v2 has a comparatively short live track record post-relaunch
- − Liquidity is thinner than the largest money markets
Is Euler safe?
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Euler is the lowest-scoring on security in our lending set at 5.5, primarily because of its March 2023 flash-loan exploit. The relaunched v2 has undergone multiple audits and carries a large bug bounty, and the stolen funds were ultimately returned, but the incident remains a material part of its record. It is best suited to advanced users who accept that history.
What happened to Euler in 2023?
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In March 2023, Euler suffered a flash-loan exploit of roughly $200M. Unusually, the funds were later returned, and the team published a transparent post-mortem. The protocol was then rebuilt as v2 on the Euler Vault Kit. We still weigh the exploit heavily, which is why security is Euler's weakest score despite the recovery.
What is the Euler Vault Kit?
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The Euler Vault Kit is the modular framework behind Euler v2 that lets developers create flexible, permissionless lending markets, each with its own customizable risk parameters. It enables the competitive, per-vault rates we score at 8, but it also means users should evaluate each vault's configuration individually rather than assuming uniform risk.
What are Euler's fees?
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Rates on Euler are set per vault rather than by one global curve, so your borrow and supply terms depend on the specific vault, and governance or vault-level fees may apply, plus network gas. We score rates 8, reflecting competitive and customizable pricing across markets.
Is Euler good for lending now?
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After its relaunch, Euler offers innovative, flexible v2 markets and competitive rates, earning an overall 6.8. The main drawbacks are its 2023 exploit, a short post-relaunch track record, and thinner liquidity than the largest money markets. It suits advanced users comfortable with that trade-off; this is not financial advice.