Euler Finance

Euler is a decentralized finance (DeFi) protocol on the Ethereum blockchain that enables users to lend and borrow a wide variety of crypto assets. Unlike other lending platforms, Euler introduces a permissionless model, allowing users to add any asset with a WETH pair from the Uniswap v3 decentralized exchange to its lending markets. This creates a more inclusive and expansive lending environment.

The protocol incorporates a risk-based approach to asset management. It categorizes assets into different tiers (Isolation-Tier, Cross-Tier, and Collateral-Tier), each with its own set of risk-management parameters. This tiered system allows users to interact with assets based on their risk appetite, from highly-vetted collateral to more speculative, isolated assets. This modular design also allows for the creation of customized lending markets.

Euler's business model revolves around the interest paid by borrowers to lenders. The protocol takes a small fee from this interest, which is then used to fund the protocol's treasury and for further development. The platform serves a broad range of clients in the DeFi space, from individual crypto holders looking to earn yield on their assets to sophisticated traders and developers who want to leverage their holdings or build new financial products on top of Euler's infrastructure.

Keywords: decentralized finance, lending protocol, crypto assets, Ethereum, permissionless, risk management, borrowing, yield, DeFi, asset tiers