Euler Finance

Overview

Euler Finance is a decentralized finance (DeFi) protocol that operates on the Ethereum blockchain, providing a platform for permissionless lending, borrowing, and risk management of crypto assets. Founded by Michael Bentley in 2020, Euler Labs, along with a team that includes Anton Totomanov, Dariusz Glowinski, Kasper Pawlowski, and Doug Hoyte, created the platform to address the liquidity fragmentation inherent in decentralized finance. The company has raised approximately $40 million in funding and is headquartered in Shanghai, China. Euler Finance integrates advanced modular architecture to enable developers to create a variety of financial products.

Recent Developments

July 18, 2025: Euler Labs announced a partnership with crypto payments startup Brahma, introducing a new credit card that allows users to make "real-world payments with crypto without selling" their holdings. This move expands Euler's usability and customer reach.
May 6, 2025: Euler's partnership with Balancer led to the deployment of high-yield pools on Avalanche, expanding cross-chain liquidity and boosting the total value locked (TVL) with their lending mechanics.
April 10, 2025: Euler released its Q1 Growth Analysis indicating a 434.7% increase in active loans and a 399% surge in user deposits after expanding to five new chains with nearly 300 new vaults.
March 13, 2025: Euler experienced a security setback when its protocol was hacked, resulting in a $170+ million exploit. A significant portion of the funds was fortunately returned, and this led to enhancements in their security protocols.
January 9, 2025: Euler partnered with Gauntlet to manage risk for its primary vaults, focusing on dynamic liquidity management, supporting their multi-chain expansion efforts.
2024: Euler introduced the V2 update, which was a significant overhaul focusing on a modular, permissionless infrastructure capable of hosting tailor-made credit markets, enhancing the platform’s flexibility and user experience.

Attribute	Information
Founding Date	2020
Headquarters	Shanghai, China
Founders	Michael Bentley, Anton Totomanov, Dariusz Glowinski, Kasper Pawlowski, Doug Hoyte
Revenue	Not publicly disclosed
Profits	Not publicly disclosed
Key Investors	Haun Ventures, Paradigm, Lemniscap
Industry	Financial Software, DeFi
Number of Employees	Not publicly disclosed

Early History

Euler Finance was founded in 2020 by Michael Bentley and his team at Euler Labs. The creation of Euler Finance stemmed from the necessity to improve DeFi lending protocols that were limited by liquidity fragmentation. The founders combined their extensive background in blockchain technology, software engineering, and fintech to develop Euler Finance as a non-custodial, permissionless protocol that allows users to engage in lending and borrowing crypto assets on the Ethereum network. By leveraging mathematical models, artificial intelligence, and comprehensive quantitative analysis, the team created a protocol that stands out for its flexibility, enabling the creation of new markets for any ERC-20 token paired with WETH on Uniswap V3.

Company Profile and Achievements

Euler Finance operates as a decentralized finance protocol on the Ethereum blockchain, designed to maximize utility and flexibility for users engaging in borrowing, lending, and trading of digital assets. Key achievements and features include:

Modular Architecture: Euler's innovative design allows for the creation of customizable vaults and financial products, such as lending protocols, stablecoins, yield aggregators, and margin trading applications.
Risk Management: Collaborations with Gauntlet for dynamic risk management enhance Euler's ability to handle market volatility effectively.
V2 Upgrade: The 2024 launch of Euler V2 marked a major upgrade, introducing multiple blockchain supports and advanced modular lending features.
Growth in TVL: Euler experienced exponential growth, achieving a TVL of over $1 billion by the middle of 2025, showcasing its scalability and user adoption.
Security Initiatives: Following a major exploit in 2023, Euler engaged in rigorous security audits and partnerships with top security firms to bolster its protocol integrity.
User Incentives: Euler implemented programs like the rEUL incentive, driving user engagement and platform growth.

Current Operations and Market Position

Euler Finance's current operations focus on expanding its reach across multiple blockchain networks with enhanced DeFi capabilities. Its non-custodial, permissionless environment on Ethereum continues to attract users who wish to engage in decentralized financial activities. Despite facing challenges, such as a significant exploit, Euler has rebounded, indicated by a marked increase in TVL and adoption across networks like Avalanche and Berachain. Euler's competitive edge lies in its modular infrastructure, enabling efficient liquidity management and novel financial strategies, such as their partnership with Brahma for credit services. The platform's strategic initiatives and innovations allow it to maintain a competitive position in the rapidly evolving DeFi landscape.

Conclusion

Euler Finance's role in the DeFi sector is marked by its innovative approach to decentralized lending and risk management on the Ethereum blockchain. Despite challenges, including a significant security exploit, Euler has demonstrated resilience and adaptability, exemplified by the successful launch of Euler V2 and subsequent growth in user adoption and TVL. With continuous enhancements in security, partnerships, and module-based innovations, Euler Finance is well-positioned to influence the future of decentralized finance significantly. As the DeFi space continues to evolve, Euler's focus on flexibility, interoperability, and user-focused development will likely guide its trajectory toward increased prominence in the global DeFi arena.