Euler Finance
Euler Finance is a DeFi lending platform on Ethereum. It lets you lend and borrow crypto without banks. In 2025, it is growing fast after a strong comeback from the 2023 hack.
Euler Finance is a DeFi lending platform on Ethereum. It lets you lend and borrow crypto without banks. In 2025, it is growing fast after a strong comeback from the 2023 hack.
If you are into crypto and want to lend or borrow without the usual headaches, Euler Finance might be your next stop. We will teach you how it works, what makes it stand out, and if it’s right for you.
Euler Finance is a DeFi lending platform. In simple words, it’s a place where you can lend crypto to earn interest, or borrow crypto by putting up collateral. No banks, no middlemen. Just smart contracts on Ethereum.
DeFi lending itself is easy to explain. Imagine a friend asks to borrow your bike. You say “Sure, but leave your phone here until you bring it back.” If they don’t return the bike, you keep the phone. That’s how collateral works in DeFi.
Euler Finance takes this to the next level. It’s permissionless. That means anyone can create lending markets for new tokens. You don’t need to wait for the team to approve it. If there’s demand, it can exist.
Since 2024, Euler has expanded beyond Ethereum. With V2, it’s now multi-chain. That means you can use it on different blockchains. More chains, more users, more options.
In 2025, Euler has about $1.6B Total Value Locked (TVL). That means users have put that much money in the system to lend or borrow. It’s not as big as Aave or Compound, but still strong.
No review is complete without history. And Euler’s history is dramatic.
In March 2023, Euler was hit by a flash loan attack. Hackers drained almost $200M worth of assets. It was one of the biggest exploits in DeFi history.
But here’s the twist. Unlike many projects that die after such a blow, Euler made a comeback.
The comeback story matters because it shows resilience. Many DeFi projects never recover. Euler did.
Let’s go through how Euler works. Think of it as a tutorial.
You start by connecting your wallet (like MetaMask). Choose a token, for example USDC, and deposit it. Once it’s inside Euler, you start earning interest right away.
If you want to borrow, you pick another token. To unlock it, you must lock some of your deposit as collateral. Example: You deposit $1,000 USDC and borrow $500 worth of ETH.
Rates move with supply and demand. If lots of people want to borrow ETH, rates go up. If fewer people borrow, rates go down.
If your collateral drops in value, you can get liquidated. But Euler uses soft liquidations, which are less scary than hard ones. Instead of losing everything, you lose just enough to fix your ratio.
Euler has different levels of risk:
This system keeps the platform safe.
Here are the top Euler Finance features that stand out:
Anyone can create a lending market for a token. No approvals needed. This keeps Euler open and innovative.
The Euler Vault Kit lets developers build custom lending pools. You can design your own rules and strategies.
You can borrow huge sums in one transaction, as long as you pay it back right away. Unlike Aave, Euler doesn’t charge a fee for these.
Euler uses Time Weighted Average Prices from Uniswap. This avoids sudden price spikes or manipulation.
Instead of wiping you out, Euler liquidates step by step. That makes it less stressful for borrowers.
Users can earn extra yield without needing to stake tokens manually. It flows directly.
Each of these features helps different types of users. Beginners enjoy softer liquidations. Developers love modular vaults. Traders use flash loans.
The EUL token is Euler’s native token.
| Aspect | Details |
| Total Supply | 27,182,818.28 EUL |
| Circulating | 19,815,561.18 EUL |
| Utility | Voting, staking for fees |
| Price History | Post-hack dip, recovery |
How to buy? You can get EUL on Uniswap, Coinbase, and other major crypto exchanges.
Is it a good hold? That depends. EUL gives governance power, and as Euler grows, governance matters more. But it’s still a risky DeFi token.
Let’s keep it honest.
| Pros | Con |
| Permissionless – no limits | Higher risk for new assets |
| Multi-chain support | TVL smaller than Aave |
| Innovative tools | Learning curve |
Security is always the big question.
Euler had a massive hack in 2023. That’s the red flag. But since then, they’ve worked hard to rebuild trust.
Compared to Aave and Compound, Euler is newer but more flexible. The risk is higher, but so are the rewards.
Use MetaMask, Coinbase Wallet, or any Web3 wallet.
Pick what you want to deposit. Start with something stable like USDC.
Click deposit, confirm transaction. Done. You now earn interest.
If you want, select another asset to borrow. Remember collateral rules.
Keep an eye on health score. If it drops too low, you risk liquidation.
When ready, repay borrowed tokens and withdraw your deposit.
Tip for beginners: Start small. Test with $50 before going big.
Euler Finance is not for everyone.
If you’re a beginner in crypto, you may find it complex. The hack history may also scare you.
But if you’re a DeFi pro, a yield farmer, or someone who likes permissionless innovation, Euler is worth a try. Start small, test features, and learn.
| Founded | 2021 |
|---|---|
| Founders | Michael Bentley (CEO), Doug Hoyte (CTO), Jack Prior (COO) |
| Headquarters | London, UK (remote-first team) |
| Native Token | EUL |
It's a DeFi lending platform where you can lend and borrow crypto without banks.
It depends on your collateral. Usually between 50% to 80% of its value.
It was hacked in 2023 but V2 has strong audits and bug bounties. Still, DeFi is always risky.
Governance and staking for fees.
On Uniswap, Coinbase, and other exchanges.
They sell just enough of your collateral to fix your ratio, not everything.
Euler is more flexible. Aave is bigger and safer. Depends on your needs.
Yes, Euler V2 is multi-chain.
They average prices over time to avoid manipulation.
Only if you believe in Euler long term. Always do your own research.
I'm Marten, a crypto nerd and tech writer who’s been deep into blockchain since 2015. I started with Bitcoin trading and later got into Ethereum and smart contracts. Over the years, I’ve tested all kinds of platforms, from DeFi tools and P2P betting sites to Web3 apps. On kryptium.co, I write simple and honest articles to help people understand what’s happening in crypto. I focus on real stuff: how things work, what tools are worth using, and what to watch out for. My background in software development helps me break down complex topics so others can actually use the info. I believe in open, decentralized systems and think crypto should be easier to understand, even for beginners. That’s what I try to do with every post I publish.
