Euler
EUL
Evaluation Score
Overall rating on a scale of 0-10
Dimension Breakdown
AI Analysis
Comprehensive evaluation of the token
Euler (EUL) demonstrates strong post-incident recovery and technical execution following its transition to Euler v2. Active Development scores highest (8.5/10) with multi-chain deployments (Euler Earn), active GitHub maintenance, and expanding integrations with RWA and tokenized equities. Market & Use Case (6.8/10) reflects differentiated modular lending features and over $1B in monthly Euler Swap volume, balanced by intense competition against established lending giants (Aave, Morpho) and a modest market cap (~$30M-$35M). Tokenomics (6.0/10) and Community Support (6.0/10) reflect high circulating supply (~88%-95%) and active governance discussions, though fee capture is currently set to 0% and potential 7.18% annual inflation may begin in 2026. Security (4.5/10) and Team & Governance (5.5/10) are weighed down by the historic March 13, 2023 exploit ($197M drained). However, because the incident occurred over 24 months ago (March 2023 vs. August 2026) and was remediated via recovered funds and v2 redesign under rigorous multi-firm audits (OpenZeppelin, MixBytes), it does not trigger the red-flag cap.
Development Activity
Code updates and developer engagement
Community Support
Social media presence and community engagement
Tokenomics
Supply, distribution, and utility
Market & Use Case
Value proposition and competitive landscape
Team & Governance
Team background and project governance
Security & Audits
Security history and audit status
About Euler (EUL)
Euler (EUL) is the native governance token for Euler Finance, a decentralized, non-custodial lending and borrowing protocol founded in 2021 by Michael Bentley. Primarily deployed on Ethereum with multi-chain expansion across networks such as Plasma, the protocol is designed to support permissionless lending markets, long-tail digital assets, and real-world asset (RWA) integrations. Its modular v2 architecture incorporates customized lending configurations, curator-managed risk parameters, and ecosystem tooling such as Euler Earn and Euler Swap.
EUL is utilized for on-chain decentralized autonomous organization (DAO) governance, treasury management, and staking mechanisms tied to market voting. The token has a maximum supply cap of 27,182,818.28 EUL, with the majority of the supply circulating following the completion of major vesting schedules. The tokenomics framework includes a potential conditional annual inflation rate of 7.18% starting in 2026, while protocol fee capture has operated with protocol fees set to 0%.
In March 2023, Euler v1 experienced a critical security exploit that resulted in the loss of approximately $197 million in ETH, WBTC, USDC, and DAI. The attack exploited an unverified donateToReserves function that lacked health checks alongside a self-liquidation mechanism. The exploiter subsequently returned the recoverable assets following negotiations, and the protocol underwent remediation, leading to the launch of Euler v2 supported by security audits from firms including OpenZeppelin and MixBytes. The protocol's governance forum has also addressed internal challenges, including compensation disputes stemming from the Elixir and Stable Labs collapse.