Twitter : 2lambro

Substack : 2lambroz.substack.com

lens : 2lambroz.lens

📍In this thread

1. Euler TLDR

2. What & How does Euler works

3. Protocol metrics

4. Euler’s moves

5. 🐑Lambroz speculation & summary

Euler is a noval lending protocol that allow borrowing of alt-coins safely with new innovation in lending pool by tiers, dutch-auction style liquidation and new interest rate model.

Intro to lending protocols

To understand Euler’s innovation, let's look at the current lending models of Aave. They r safe n great to use, but not designed for lending & borrowing illiquid or volatile assets based on the share lending pool design.

Aave uses a shared pool model, this helps aggregating the assets for better lending experience but also means all the asset shares the same risk if bad debt happens. Aave has to be very careful on what asset can be listed on their platform and here's where Euler comes in

🔹Euler asset tiers

🔹Decentralized Price Oracles

🔹Euler’s interest rate model

🔹Soft Liquidation

🔹Dutch-auction liquidation (MEV resistant)

🔹Euler asset tiers

To safely list different assets in the Euler, it’s design is to separate into different pools, providing isolated lending pools by tiers

-Collateral

-Cross

-Isolated

-Unlisted

By separating them into different tier and limited features depending on tier level, this prevents the risk of bad debt from potential spillover impact liquidation via isolating the riskiest assets & limiting them to act as collateral

$EUL holders can vote to liberate assets from the isolation-tier & promote them to different tiers.

🔹Decentralized Price Oracles

A lot of small crypto asset are does not have an oracle, euler uses’s uniswap v3’s time weighted average price (TWAP) to enable that.

🔹Euler’s interest rate model

Most lending platform using static linear model and euler uses control theory to help autonomously guide the cost of borrowing towards a level that maximises capital efficiency

🔹Soft Liquidation

Essentially its partial liquidation for better borrowing experience in case of high volatility & instant liquidation

🔹Dutch-auction style liquidation

Dutch-auction style for liquidators instead of aave’s fixed 5 to 10% discount for liquidation where whoever pays the most gas gets to be the liquidator avoiding MEV giving the reward to liquidators.

$EUL represent voting powers to effec the changeover protocol code. Most of the votings are on Gauges (controlling emission reward), change of asset class & deploying to more chains.

Im quoting mostly from @john_tv_locke’s report from @messaricrypto

Key metrics im looking at

🔹Pool count, average daily active users, unique users, daily number of borrows, and daily number of deposits all increased consistently

🔹Number of Pools YoY growth 472.7% growth

🔹On September 30, 30% of the borrow value ($75 million) on Euler came from outside of the Big Four

🔹Average weighted-average liquidation discount 2.25%

🔹Total earnings are growing

🔹Price against unlock vesting stood strong

Euler just expanded to BNB last week and having another proposal going to polygon as well.

💪🏻THEY ARE FLEXING & EXPANDING

🔹They just deployed on BNB

🔹Voting to go to Polygon soon

🔹One of the few lending platform for stETH

Eular is a dapp with steady grow with design that is adaptable, with their lending model & starting to deploy to more chains that has more alternative smaller tokens will bring in move tvl & interesting dynamics in gruages.

It is a protocol that shows healthy growth despite the bear and its vesting schedule. However in terms of token, it may not capture most of the value of the protocol.

In terms of investment i’d actually focus more on using the platform finding alt pairs to short or lending for emission incentives. There are also a few delta neutral strategies you can play with its emission incentives.

🤢*veryvery toxic thinking, if u think stETH might depeg u can borrow from Eular using ETH as collateral to hedge the delta for around 5% apy borrowing interest now. Might be something to consider.

Hope you enjoy this thread.

Twitter : 2lambro

Substack : 2lambroz.substack.com

lens : 2lambroz.lens

📍In this thread

1. Euler TLDR

2. What & How does Euler works

3. Protocol metrics

4. Euler’s moves

5. 🐑Lambroz speculation & summary

Euler is a noval lending protocol that allow borrowing of alt-coins safely with new innovation in lending pool by tiers, dutch-auction style liquidation and new interest rate model.

Intro to lending protocols

To understand Euler’s innovation, let's look at the current lending models of Aave. They r safe n great to use, but not designed for lending & borrowing illiquid or volatile assets based on the share lending pool design.

Aave uses a shared pool model, this helps aggregating the assets for better lending experience but also means all the asset shares the same risk if bad debt happens. Aave has to be very careful on what asset can be listed on their platform and here's where Euler comes in

🔹Euler asset tiers

🔹Decentralized Price Oracles

🔹Euler’s interest rate model

🔹Soft Liquidation

🔹Dutch-auction liquidation (MEV resistant)

🔹Euler asset tiers

To safely list different assets in the Euler, it’s design is to separate into different pools, providing isolated lending pools by tiers

-Collateral

-Cross

-Isolated

-Unlisted

By separating them into different tier and limited features depending on tier level, this prevents the risk of bad debt from potential spillover impact liquidation via isolating the riskiest assets & limiting them to act as collateral

$EUL holders can vote to liberate assets from the isolation-tier & promote them to different tiers.

🔹Decentralized Price Oracles

A lot of small crypto asset are does not have an oracle, euler uses’s uniswap v3’s time weighted average price (TWAP) to enable that.

🔹Euler’s interest rate model

Most lending platform using static linear model and euler uses control theory to help autonomously guide the cost of borrowing towards a level that maximises capital efficiency

🔹Soft Liquidation

Essentially its partial liquidation for better borrowing experience in case of high volatility & instant liquidation

🔹Dutch-auction style liquidation

Dutch-auction style for liquidators instead of aave’s fixed 5 to 10% discount for liquidation where whoever pays the most gas gets to be the liquidator avoiding MEV giving the reward to liquidators.

$EUL represent voting powers to effec the changeover protocol code. Most of the votings are on Gauges (controlling emission reward), change of asset class & deploying to more chains.

Im quoting mostly from @john_tv_locke’s report from @messaricrypto

Key metrics im looking at

🔹Pool count, average daily active users, unique users, daily number of borrows, and daily number of deposits all increased consistently

🔹Number of Pools YoY growth 472.7% growth

🔹On September 30, 30% of the borrow value ($75 million) on Euler came from outside of the Big Four

🔹Average weighted-average liquidation discount 2.25%

🔹Total earnings are growing

🔹Price against unlock vesting stood strong

Euler just expanded to BNB last week and having another proposal going to polygon as well.

💪🏻THEY ARE FLEXING & EXPANDING

🔹They just deployed on BNB

🔹Voting to go to Polygon soon

🔹One of the few lending platform for stETH

Eular is a dapp with steady grow with design that is adaptable, with their lending model & starting to deploy to more chains that has more alternative smaller tokens will bring in move tvl & interesting dynamics in gruages.

It is a protocol that shows healthy growth despite the bear and its vesting schedule. However in terms of token, it may not capture most of the value of the protocol.

In terms of investment i’d actually focus more on using the platform finding alt pairs to short or lending for emission incentives. There are also a few delta neutral strategies you can play with its emission incentives.

🤢*veryvery toxic thinking, if u think stETH might depeg u can borrow from Eular using ETH as collateral to hedge the delta for around 5% apy borrowing interest now. Might be something to consider.

Hope you enjoy this thread.