Euler Finance

Euler Finance is a modular lending protocol built on the Ethereum Vault Connector (EVC), enabling permissionless creation of isolated lending markets with customizable risk parameters. Unlike monolithic lending protocols, Euler v2 allows any token to be listed in a vault with fine-grained control over collateral factors, interest rate models, and liquidation logic. As HyperEVM adoption grows, Euler's architecture is well-suited to support the long-tail of Hyperliquid spot tokens as borrowable and collateralizable assets.

Lending and borrowing protocols are essential infrastructure on Hyperliquid, unlocking capital efficiency by allowing users to borrow against staked assets and perp positions. Euler Finance contributes to this category where protocols enable recursive yield strategies — stake HYPE, deposit LSTs as collateral, borrow stablecoins, and redeploy. The unified state between HyperCore and HyperEVM makes Hyperliquid lending uniquely capital-efficient.