Eulerv2
Eulerv2: Euler vaults with or without governors
Euler V2 is a modular lending protocol with governed and ungoverned vaults. The choice determines whether a vault's own parameters can be actively changed after launch.
- Governed vaults
- A governor can update selected settings through the configuration paths that the vault design permits.
- Ungoverned vaults
- Parameters are fixed, with no active governor path for updating that vault's own settings after launch.
- Shared structure
- ERC-4626 vaults that can connect through the Ethereum Vault Connector (EVC), allowing selected vaults to recognise deposits in other vaults as collateral.
Which settings a governor can adjust
A creator selects a vault's asset, collateral relationships, price oracles, interest-rate model, caps, and liquidation parameters. A governor's permitted parameter updates may include risk settings, rates, caps, or other configuration paths. The vault design determines which updates are possible.
Fixed parameters and changing market conditions
An ungoverned vault can still connect through the EVC. A borrowing vault can accept selected deposits in other vaults as collateral and apply its configured valuation and risk rules. Connected collateral relationships remain relevant to risk even when a vault's own parameters are fixed.
Borrow rates follow the logic of the configured interest-rate model ; not every model uses utilisation. Supplier returns reflect borrower interest, utilisation, configured fees, and vault accounting. Withdrawals depend on the vault's available liquidity and contract limits.
Governance and borrowing availability
Ungoverned describes control over parameters. Non-borrowable describes a vault from which assets cannot be borrowed, although its deposits may serve as collateral where another vault accepts them. A governed vault can support both collateral use and borrowing, depending on its design.
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