EULER REBORN: A NEW ERA OF PROGRAMMABLE CREDIT

Summary from the TLDR Crypto newsletter

Euler V2 introduces a modular vault infrastructure (EVK/EVC) that enables permissionless deployment of bespoke lending markets with cross-vault collateralization and programmable liquidation, creating a composable credit layer akin to traditional capital markets. Its EulerSwap feature activates idle liquidity by allowing vault assets to serve as AMM LPs with just-in-time borrowing, sharply boosting capital efficiency, market depth, and protocol fee generation. TVL surged from roughly $110 million to nearly $2 billion in under a year, but most fee switches remain off, deferring token value accrual and positioning EUL for future monetization while capping current utility. Euler faces stiff competition from Aave, Compound, and new entrants like Morpho, and must rebuild trust after its 2023 exploit to sustain growth and attract institutional capital.