Hello! Today, I'm going to learn more about the Euler (EUL) coin. It's a project that's been getting a lot of attention recently among DeFi lending protocols, and many people have been curious about it. In fact, I hesitated at first because it seemed complicated, but it turned out to have really innovative technology. I'll explain it in an easy way so that even those who are new to cryptocurrencies can understand. 😊
1. Introduction to the Euler Protocol and EUL Coin
Euler (EUL) coin is not just a simple cryptocurrency, but a governance token for an innovative DeFi lending protocol. Unlike existing lending platforms such as Compound or Aave, Euler's biggest feature is that it can use any ERC-20 token as collateral without permission.
To explain how innovative this is, existing platforms had to go through a governance vote to add new tokens. However, Euler has built a unique system that automatically supports new tokens while maintaining security. In particular, in terms of risk management, it is designed to isolate each asset into a separate pool so that a problem with one asset does not affect the entire system.
💡 What's special about Euler: While existing DeFi lending platforms operate in a whitelist manner, Euler operates in a blacklist manner. That is, except for the banned tokens, everything else is usable!
2. The development history of the Euler project
The Euler project was officially launched in December 2021. The development team consists of mathematicians and computer scientists from Oxford University, and this project was born after about two years of research and development to solve the limitations of the existing DeFi lending market.
It was quite quiet at the beginning of its launch, but it began to attract a lot of attention from the DeFi community from mid-2022. In particular, as TVL (Total Value Locked) increased rapidly, it was evaluated as a ""next-generation lending protocol"" by industry experts. However, it also faced a major ordeal when it experienced a hacking incident in March 2023.
However, what was really impressive here was the response of the development team and the community. They provided 100% compensation to users who suffered hacking damage, and released version 2.0 with significantly enhanced security. Thanks to this responsible response, they are now regaining trust and growing.
3. Euler's innovative operating principle
To understand how Euler works, we must first understand the limitations of existing DeFi lending platforms. Existing platforms put all assets into a single pool and operate, so if there is a problem with one asset, it affects the entire system. Euler introduced the 'Isolated Pool' system to solve this problem.
By creating a separate loan pool for each asset, it prevents other assets from affecting each other. For example, if you borrow token B using token A as collateral, this transaction takes place in an independent space and is not affected at all by the price fluctuations of token C or token D. Thanks to this structure, it is possible to safely support a much wider range of tokens.
Another interesting feature is the 'Sub-Account' system. Users can create multiple sub-accounts with one wallet and operate them with different strategies. It is similar to the concept of opening multiple accounts at a bank.
🔬 Technological Innovation: Euler uses the TWAP (Time-Weighted Average Price) system to process oracle price information more accurately. This allows for quick response to real-time price fluctuations while preventing price manipulation attacks.
4. Various uses of EUL tokens
EUL tokens are governance tokens that play a central role in the Euler ecosystem. They do not simply grant voting rights, but are actually responsible for various functions necessary for platform operation. The most basic use is, of course, voting rights for protocol improvement proposals. Important decisions such as adding new features, adjusting fees, and upgrading security are decided by the votes of EUL holders.
However, the real appeal of EUL lies in its staking rewards. If you stake EUL, you can receive a portion of the fee revenue generated by the platform. The current annual yield is approximately 8-15%, but it fluctuates depending on the DeFi market situation. Also, when new features or partnerships are announced, EUL holders are given priority for benefits.
Recently, EUL has become more useful as it can be used as collateral in other DeFi protocols. You can borrow DAI or USDC using EUL as collateral in MakerDAO or Compound, and you can also use this strategy for investment.
5. Major exchanges where EUL coins can be traded
EUL coins can currently be traded on several major exchanges. Binance and Coinbase are the exchanges with the highest trading volume and best liquidity. Binance allows trading in EUL/USDT, EUL/BTC pairs, and the fees are quite reasonable.
Uniswap is the most actively traded decentralized exchange (DEX). The liquidity of the EUL/ETH and EUL/USDC pools on Uniswap V3 is sufficient, so large-scale transactions are possible without slippage. Personally, I use Uniswap for small transactions and Binance for large transactions.
Comparison by exchange:
• Binance: High liquidity, low fees, Korean support
• Coinbase: High reliability, US regulatory compliance, relatively high fees
• Uniswap: Decentralized, 24/7 trading, gas fee considerations
• 1inch: Best price, multiple DEX integration, for advanced users
For Korean investors, it is not yet listed on domestic exchanges, so they have to use overseas exchanges. However, as EUL's recognition is increasing, I think it is possible that it will be listed on domestic exchanges such as Upbit or Bithumb in the future.
6. Active Euler community and information channels
The Euler community is not large, but it is very active and professional. The official Discord server is where developers directly participate to answer technical questions and get the latest updates. In particular, the 'dev-discussion' channel has in-depth discussions about technical improvements to the protocol.
Follow the official account @eulerfinance on Twitter. Here, they post major updates, partnership news, and DeFi market analysis articles. I also recommend following the personal Twitter accounts of the development team members. In particular, founder Michael Bentley (@euler_mab)'s Twitter provides insight into the project's philosophy and future direction.
The r/EulerFinance subreddit on Reddit is also quite useful. Here, you can see real-life experiences, profit analysis, and comparative analysis with other DeFi protocols from users. A lot of practical information is shared to help you make investment decisions.
📚 Recommended learning materials: The official Euler documentation (docs.euler.finance) is really well-written. It explains everything from technical content to actual usage in detail, so be sure to read it!
7. Guide to choosing a safe EUL coin wallet
Since EUL is an ERC-20 token, you can store it in any wallet that supports Ethereum. The most popular option is MetaMask, which is easy to install and use, so I recommend it to beginners. MetaMask is convenient because it allows you to connect directly to the Euler protocol and use the lending and deposit functions right away.
If you value security more, consider a hardware wallet. Cold wallets such as the Ledger Nano series or Trezor are much safer from hacking risks. I think a hardware wallet is essential, especially if you plan to store a large amount of EUL for a long time. It costs about 100,000 won, but it is a worthwhile investment if you think about protecting assets worth millions of won.
If you want to use it on mobile, I recommend Trust Wallet or Coinbase Wallet. Both have intuitive user interfaces and can easily connect to DeFi protocols. However, no matter which wallet you choose, never store your seed phrase (recovery phrase) online, but keep it in a safe offline location.
⚠️ Security precautions: There are many phishing sites, so always check the official URL. In particular, all domains that are not app.euler.finance are likely to be fake!
8. Things to know when investing in EUL coins
If you are considering investing in EUL coins, you must understand some important risks. First, as seen in the 2023 hacking incident, DeFi protocols always have smart contract risks. No matter how much security audits are conducted, they cannot be guaranteed to be 100% safe. Therefore, it is wise to limit the investment amount to a level where you can lose it completely without any problems in your life.
Second, the value of EUL is directly linked to the success of the Euler protocol. As TVL (total deposited assets) increases and transaction volume increases, the value of EUL also increases, but in the opposite case, it can experience a large decline. In particular, when the entire DeFi market enters a recession, EUL is often affected as well.
Third, regulatory risks should also be considered. As governments around the world are strengthening regulations on DeFi, it is difficult to predict how unlicensed lending protocols like Euler will be affected. In particular, in Korea, regulations related to virtual assets are constantly changing, so please carefully monitor related news.
Lastly, be sure to check the latest status of the project before investing. Please make an investment decision by comprehensively judging the progress of the roadmap, the activity of the development team, and community responses. And never invest all your money in one place, it is important to diversify your portfolio to spread your risk.
⚠️ Investment Warning: This article is for informational purposes only and is not an investment recommendation. Cryptocurrency investment carries high volatility and risk of loss, so sufficient research and careful judgment are required before investing.
That's all for the Euler (EUL) coin. I think it's a project with truly innovative technology in the DeFi lending market. Of course, it experienced a hacking incident, but after that, I saw how it greatly strengthened security and responded responsibly, which made me trust it even more. However, please always be careful when investing and make decisions based on your own judgment. If you have any questions, please leave a comment at any time! Let's study together! 😊
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