Lending · Review
ActiveEuler V2 Review 2026: Modular Lending Across 16 Chains
Euler V2 is a modular lending protocol where anyone can launch a lending market, listed on DefiLlama with about $268 million in TVL across 16 chains. Its strengths are its security work and flexibility. Risk varies by market.
By the DappsAtlas editorial team · Updated
DappsAtlas score
8.0/10
Excellent
Our verdict on Euler V2
8.0/10Euler V2 suits DeFi users who want to choose a specific lending market, curators who want to launch one, and apps that want to embed lending. Its main strength is flexibility, backed by a security record that includes 60+ engagements, Certora formal verification and a bug bounty of up to $7.5m. The main caveat is that risk differs by vault, so each market's assets, oracle and governor need checking. This is not a set-and-forget product for beginners.
Score breakdown
How Euler V2 scores
- Security
- 8.5/10
- Ease of use
- 7.0/10
- Fees
- n/a
- Features
- n/a
Scores run from 0 to 10 and are based only on facts we could verify. Where information was missing we mark the score n/a rather than guess.
What is Euler V2?
Euler V2 is a lending protocol for crypto, stablecoins and tokenized assets. Users can lend to earn or borrow against collateral, and builders can launch their own markets. DefiLlama lists it under Lending with about $268 million in TVL and a listing date of August 2024.
The homepage describes it as the credit layer for programmable finance. Products include the lend and borrow app, Euler Earn, an embedded lending SDK, permissioned markets for institutions, and a Toolbox for creating markets.
It has an EUL token and two audits are listed on DefiLlama, while the homepage cites 60+ security engagements. Euler is a good fit for users who want to pick a specific market and understand its risk.
How Euler V2 works
Euler V2 is built from vaults. Lenders deposit assets into a vault, and borrowers draw from it after posting collateral held in other vaults. Each market is a set of vaults connected by a router that prices assets in a common unit of account, such as US dollars.
Because markets are modular, anyone can deploy one by choosing the assets, collateral rules and pricing. A governor controls each vault's settings. Curated products such as Euler Earn bundle a deposit into a managed earn vault.
If a borrower's collateral value falls too far, the position can be liquidated to repay the loan. Permissioned markets add rules about who can deposit, borrow and liquidate, aimed at institutions with tokenized assets.
7 features
Key features
01
Modular lending markets
Any supported asset can be used as collateral in a market, and markets are built from separate vaults rather than a single shared pool.
02
Market launch Toolbox
Builders and curators choose assets, collateral and borrowing rules, and the Toolbox deploys a router and vaults on the chosen chain.
03
Euler Earn
One deposit goes into a curated earn vault.
04
Embedded lending SDK
Apps and fintechs can add lending and borrowing through Euler's SDK while keeping their own user experience.
05
Permissioned markets
Markets for tokenized gold, funds and credit set rules for who can deposit, borrow and liquidate.
06
Tokenized asset support
The homepage lists tokenized gold, treasuries, bonds, credit and equities alongside crypto and stablecoins.
07
Agents
The homepage mentions lending with agents or building your own, but public sources give no further detail.
Pros and cons
What we like
- Modular design lets curators launch markets with their own assets and rules.
- Homepage cites 60+ security engagements, Certora formal verification and a bug bounty of up to $7.5m.
- Available across many chains, including Ethereum, Base, Arbitrum and Monad.
- Supports tokenized real-world assets as well as crypto and stablecoins.
- Embeddable SDK for apps and fintechs.
- About $268 million in TVL gives it meaningful scale.
Watch out for
- Smart-contract risk remains despite audits and formal verification, and the 2026 facts do not cover the protocol's incident history.
- Risk depends on the individual market, so users must check the assets, oracles and governor of each vault they use.
- Modular design with many vaults across many chains is harder for a newcomer to understand than a single pooled market.
- TVL fell 3.8% over the past 7 days, and public sources give no historical trend beyond that.
- Tokenized-asset and permissioned markets add issuer, custody and eligibility risks that are outside the protocol's control.
- Fee and interest-rate details are not published publicly, so users must read them in the app.
Euler V2 fees
Fees are not published. Interest rates, borrow costs and any protocol or curator fees vary by market, and users see them in the Euler app before supplying or borrowing.
On-chain transactions also cost network gas on the chosen chain. Check the docs and each vault's settings before committing funds.
Is Euler V2 safe?
Euler V2 reports 60+ independent security engagements, formal verification by Certora of properties of Euler V2 core and EulerEarn, and a bug bounty of up to $7.5m. DefiLlama lists two audits. These are positives, but audits do not remove smart-contract risk.
Lenders and borrowers keep custody through their wallets, yet they are exposed to bad debt, oracle failures, liquidations and the choices of each vault's governor. Permissioned markets for tokenized assets add issuer and eligibility rules. The homepage links Risk Disclosures and a MiCA Whitepaper, which readers should review. This review does not cover any past incidents from public sources provided.
6 steps
How to get started with Euler V2
- 1
Read the docs and the risk disclosures on the official site.
- 2
Connect a compatible wallet and choose a supported chain in the Euler app.
- 3
Pick a market and review its assets, governor and rates.
- 4
Supply an asset to earn, or deposit collateral to borrow.
- 5
Monitor your borrow position's health so it avoids liquidation.
- 6
Start with a small amount until you understand how vaults work.
Who Euler V2 is for
Euler V2 suits experienced DeFi lenders and borrowers who read market parameters, curators and risk managers launching markets, and developers adding lending to apps. Institutions with tokenized assets can look at the permissioned markets. Newcomers should start small.
Euler V2 FAQs
What is Euler V2?
Euler V2 is a modular lending protocol. Users can lend assets to earn interest or borrow against collateral, and builders can launch their own lending markets with chosen assets and rules.
Which chains does Euler V2 run on?
DefiLlama lists Euler V2 on Ethereum, Base, Arbitrum, Avalanche, BNB Chain, Linea, Sonic, Berachain, Mantle, Monad, Plasma, Unichain, Hyperliquid, BOB, TAC and Swellchain. The homepage says 10 chains, and the available markets differ by chain.
Is Euler V2 safe?
The homepage cites 60+ independent security engagements, formal verification by Certora of properties of Euler V2 core and EulerEarn, and a bug bounty of up to $7.5m. No protocol is risk-free, and each market has its own risks.
What is Euler Earn?
Euler Earn is a product that lets users make one deposit into a curated earn vault. The homepage does not describe the strategy details, so check the vault's documentation in the app.
Can I launch my own market on Euler?
Yes. The homepage describes a Toolbox for creating and managing markets, where you choose assets, pricing basis and lending rules. Deployment creates a router and vaults on the selected chain.
Does Euler have a token?
DefiLlama lists a token called EUL, which also appears among the assets on the homepage. The project does not describe its utility, so check the docs and the governance forum.
Compare
Euler V2 alternatives
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Guides
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Aave in 2026: How the Lending Protocol Grew and What Comes NextAave is one of the longest-running lending markets in decentralised finance. This guide explains how it works, how it grew, what the AAVE token and GHO do, the risks to weigh, and how to follow its next version.
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ADALend Review 2026: What the Cardano Lending Project OffersADALend was a Cardano lending project that drew attention in 2021 for putting idle assets to work. This guide sets out what the sources confirm, what they leave open, and how to check a lending protocol's current status and risks before depositing funds.
Blockchain
Avalanche Blockchain Explained: How AVAX Works in 2026Avalanche is a layer 1 blockchain built for fast transaction finality and customisable networks. This guide explains its three built-in chains, the AVAX token, how validators reach agreement, and how to start safely.
How we checked
Sources
Last updated . Spotted an error? Tell us and we will correct it.