Euler on collateral & liquidation
8.4/ 35% of the score
Per-market parameters, oracles and liquidation rules are published on-chain, and v2 isolates each market in its own vault.
Best Crypto Lending Platforms · Rank 05 of 8
Euler review
Permissionless markets with modular risk parameters
Last verified August 16, 20264 scored axes
Score8.4
Documented, with gaps
The short answer
Euler scores 8.4 out of 10 and ranks #5 of 8 in the best crypto lending platforms table, strongest on rate transparency (8.8) and weakest on security record (7.8).
Rebuilt after a 2023 exploit in which the attacker returned nearly all the funds, and the v2 modular architecture is now one of the most flexible lending designs in production. The history is part of the assessment; so is the recovery.
Key facts on record
- Launched
- 2021 (v2 from 2024)
- Model
- Modular permissionless markets
- Chain
- Ethereum and L2s
What the record shows
4 axes, weighted as published in the table’s methodology. Each score below is read from the fact printed under it.
Euler on security record
7.8/ 25% of the score
A March 2023 flash-loan exploit took roughly $197m and the attacker returned substantially all of it; the rebuild came with a published formal-verification and audit programme.
Euler on rate transparency
8.8/ 20% of the score
Rates follow published per-market models set by the vault creator.
Euler on counterparty clarity
8.8/ 20% of the score
Positions are on-chain and over-collateralised, and the vault creator responsible for each market is identifiable.
Quick answers
- What is Euler best for?
- Permissionless markets with modular risk parameters. Rebuilt after a 2023 exploit in which the attacker returned nearly all the funds, and the v2 modular architecture is now one of the most flexible lending designs in production.
- Where does Euler rank among best crypto lending platforms?
- #5 of 8, scoring 8.4 out of 10 — documented, with gaps on our band scale.
- What is the weakest part of Euler?
- Security record at 7.8. A March 2023 flash-loan exploit took roughly $197m and the attacker returned substantially all of it; the rebuild came with a published formal-verification and audit programme.
Strengths and weaknesses
In its favour
- Highly modular design supporting bespoke market parameters
- Full recovery and repayment after its 2023 exploit
- Extensive audit and formal verification programme post-rebuild
Against it
- Suffered one of the largest DeFi exploits on record
- Flexibility places more risk-configuration burden on market creators
March 2023, and the negotiation that followed
A flash-loan exploit took roughly $197m — among the largest in DeFi history. Over the following weeks the attacker returned substantially all of it, after a public negotiation nobody involved will want to repeat. The rebuild came with a published formal-verification and audit programme rather than a patch and a relaunch announcement.
What v2 actually offers
Isolated vaults with parameters, oracles and liquidation rules set per market and published on-chain. It is the most flexible lending architecture in production: a market creator can express risk configurations no monolithic pool supports.
Flexibility moves the diligence
Because the creator sets the parameters, the quality of a market depends on whoever configured it. The vault creator is identifiable, which is the right answer, and it means reading who built a market before supplying to it is now part of the job.
How to weigh the history
An exploit of that size is not erased by a recovery. What it demonstrates is a team that faced the worst outcome in this category and did not disappear — and a codebase that has since been through more verification than most of its competitors.
Who it is for
Users who want a market configured for a specific pair or oracle that monolithic pools do not support, and who will check who created it before supplying.
Frequently asked questions
Was Euler hacked?+
Yes. A March 2023 flash-loan exploit took roughly $197m, and the attacker subsequently returned substantially all of it. The protocol rebuilt with a published formal-verification and audit programme.
Is Euler safe now?+
Its v2 uses isolated vaults with published per-market parameters and has been through extensive formal verification. Because market creators set the risk parameters, the safety of a given market depends on who configured it.
What makes Euler different?+
Modularity: anyone can create a lending market with its own oracle, loan-to-value and liquidation rules, rather than borrowing within one protocol-wide risk configuration.
How Euler compares
8 services in best crypto lending platforms
- 01MorphoIsolated markets with curator-defined risk9.1
- 02CompoundConservative, single-borrow-asset markets9.0
- 03AaveThe default on-chain money market8.8
- 04SparkBorrowing against blue-chip collateral at predictable rates8.8
- 05Euleryou are herePermissionless markets with modular risk parameters8.4
- 06Maple FinanceInstitutional credit with named pool delegates7.8
- 07LednBitcoin-backed loans with open-book reporting7.6
- 08NexoCustodial borrowing with a consumer interface7.0