Euler v2 on Supersmooth (modular vault-based lending)

Euler v2 is a modular vault-based lending platform. Anyone can deploy lending vaults with custom risk parameters using the Euler Vault Kit, and vaults compose through the Ethereum Vault Connector, ranging from conservative blue-chip markets to exotic collateral. On Supersmooth, Euler v2 supports all four automations and offers the widest range of market designs of the six integrated protocols.

Overview

Euler v2 replaces the monolithic pool model with a modular architecture where each vault can have its own collateral, oracle, interest rate model, and risk configuration. Supersmooth integrates Euler v2 for Borrow and Multiply positions on Ethereum Mainnet, and includes Euler vaults in Supersmooth Earn across three networks. Because each vault is independently configurable, vault-level due diligence matters: the primitive is neutral and the instance carries the risk.

Attribute	Value
Networks	Ethereum Mainnet (Borrow and Multiply); Ethereum Mainnet, Base, Arbitrum (Earn)
Supersmooth automations supported	Stop Loss, Trailing Stop Loss, Auto Sell, Auto Take Profit
Liquidity model	Modular vault-based
Liquidation style	Vault-dependent
Governance	Euler DAO

Origin and timeline

Euler v1 launched in December 2021 with permissionless listing of long-tail assets. In March 2023, Euler suffered one of the largest exploits in DeFi at roughly $197M, most of which the attacker returned weeks later. The Euler team spent eighteen months rebuilding. Euler v2, released in September 2024, is a ground-up redesign with modular vaults, extensive audits, one of the largest bug bounties in the industry, and a security-first culture forged the hard way.

Design tradeoffs

Modularity: Euler v2 offers the widest range of market designs of the six protocols Supersmooth integrates, including isolated or cross-collateral configurations and custom oracles and interest rate models per vault. This also means vault-level due diligence matters, because as with Morpho the primitive is neutral and the instance carries the risk.
History: the Euler v1 exploit is part of any objective account of Euler, and so are the full rebuild, the return of funds, and the v2 security investment.