Euler (EUL)

Lending and Borrowing

Euler is a permissionless lending platform where users can lend their crypto assets to earn interest or borrow crypto by providing collateral. It supports a wide range of tokens, including volatile and less common assets, allowing more flexibility than many other platforms.

Modular and Customizable Vaults

Users and developers can create custom lending and borrowing vaults tailored to specific needs. These vaults can hold various asset types, including traditional crypto tokens, tokenized real-world assets, synthetic assets, and NFTs, enabling new financial products and strategies.

Capital Efficiency and Risk Management

Euler uses unique risk management features and on-chain pricing to maintain healthy lending markets. It allows rehypothecation, meaning lenders can earn more by lending out collateral that borrowers are still using, improving capital efficiency.

DeFi Ecosystem Integration

Euler’s design supports composability with other DeFi tools and protocols, enabling users to build complex credit products and strategies on top of its platform.

Governance and Community Use

Euler’s token holders can participate in governance decisions, influencing the platform’s development and policies.

For more details, visit Euler Finance.

Pros

• Supports lending and borrowing of nearly every ERC20 crypto asset, offering wide asset variety.
• Modular design allows flexibility and customization for users and developers.
• Permissionless and accessible globally with just an internet connection.
• User interface is easier to navigate compared to many other DeFi platforms.
• Innovative technology aims to reduce risk and volatility in lending and borrowing.
• Allows users to earn interest on crypto assets or borrow against them without selling.
• Strong community governance and ongoing development with Euler v2 introducing new features like the Euler Vault Kit.

Cons

• The platform is considered advanced and may be less beginner-friendly despite UI improvements.
• Experienced a major hack in 2022 where $197 million was stolen, though funds were mostly recovered.
• Being a first-generation DeFi lending protocol, it had some bugs and vulnerabilities initially.
• Market performance and token price have shown volatility and underperformance compared to some peers.
• Complex concepts and risk management features may require users to have a good understanding of DeFi.

For more details, visit Euler Finance website.

Founders

Euler was founded by Michael Bentley, Doug Hoyte, and Jack Prior.

Additional Team Members

The founding team also includes Anton Totomanov, Dariusz Glowinski, and Kasper Pawlowski, who are part of the broader team at Euler Labs.

Investors in Euler

Euler has attracted funding from several well-known venture capital firms and investors in the crypto and DeFi space. Some of the notable investors include:

• Coinbase Ventures: The investment arm of Coinbase, a major cryptocurrency exchange.
• FTX: A prominent crypto exchange and investment firm.
• Haun Ventures Management: A venture capital firm focused on crypto and blockchain startups.
• Other Industry Investors: Euler has raised around $40 million in venture capital from a mix of institutional investors and high-net-worth individuals.

These investors support Euler's development as a permissionless lending protocol in decentralized finance.

Halal Status of Euler

• Yes, Euler can be considered halal by some because it is a decentralized lending platform that allows users to lend and borrow crypto assets without interest-based loans (riba), which is a key concern in Islamic finance.
• However, the halal status depends on how the platform is used and whether the specific tokens and transactions comply with Islamic principles.
• There is no official universal ruling on Euler specifically, so individual interpretation and consultation with a qualified Islamic scholar are recommended.

In summary, Euler’s structure as a DeFi lending protocol can align with halal principles if used properly, but final judgment depends on personal or scholarly assessment.