Credit opportunities — for everyone
The Euler platform as evolution of the DeFi sector
Issues of lending
Traditional credit programs (banking, financial institutions) require the presence of intermediate links — guarantors, guarantors, insurance organizations. In addition, access to borrowed funds is complicated due to complex procedures for allowing a client to access the service, multi-level checks on solvency and the socio-economic reputation of the subject.
The DeFi infrastructure (decentralized finance) has removed these barriers and expanded the opportunities for attracting third-party capital.
The Euler lending protocol provides a range of relevant services for accessing and managing the risk of lending to cryptoassets.
As you know, the cryptocurrency market is characterized by increased volatility of all liquid assets, even large-cap tokens. Periods of recession, a bear market, are observed regularly (remember at least 2018, the beginning of 2020). Unfortunately, in such phases of negative price movement, many investors and traders are left without effective tools for opening “short” positions.
The Euler platform helps any user to lend digital assets for a convenient period, to dispose of tokens at their own discretion.
Platform and protocol overview
The first blockchain-based lending protocols (Compound and Aave) provide users with a limited list of digital currencies and tokens to borrow.
Euler significantly expands the opportunities for investors and traders by transferring a large pool of assets to management (based on various networks, with different segments by economic indicators — capitalization, daily trading volume, number of active holders, etc.).
It is important to note that the popular stablecoins USDT and DAO can also be used as lending support.
To use Euler, you just need to connect your cryptocurrency wallet to the application, no additional verification and other admission procedures are required, this approach corresponds to the main principle of DeFi — accessibility to the maximum number of users.
Euler positions itself as a community-centric platform, so the principles of DAO (Digital Decentralized Autonomous Organization) are used for decision making.
For example, holders of the $EUL token vote to determine the level of functionality to which the asset belongs — (isolation level, multi-level, collateral ).
For the development of the project and the comprehensive motivation of the participants, the earned funds will be distributed among the holders of the $EUL utility token.
Platform benefits
For any financial decision, the most important properties are the stability of operation and the minimization of risks and costs.
The Euler platform addresses key issues for market participants in the lending industry:
- leveling losses in case of negative dynamics of the price of an asset placed in a liquidity pool (for example, Uniswap)
- the use of almost any crypto asset to form a credit pair (all coins from wETH joint pools on Uniswap are available)
- collateral based on stability pools, support by “insurance” platform tokens
- risk reduction due to progressive algorithms for determining the creditworthiness for each asset for the user (keeping the market in balance, the absence of unsecured flash loans and, as a result, market manipulation by unscrupulous participants)
- segmentation of assets into 3 levels by functionality (lending, loan, cross-borrowing, collateral)
- the minimum amount of commissions for transfers, grouping transactions in a modular system (reducing the total number due to consolidation)
- adaptable interest rates ensure compliance with current market conditions (Uniswap v3 decentralized oracle)
Obviously, Euler offers the most advanced and affordable set of digital asset lending services in the DeFi infrastructure.
Implementing and promoting cryptocurrencies, obtaining investment resources for the implementation of various projects (without increased risks, without the appearance of financial “bubbles”) has now become much easier.
