What is Euler (EUL)?

Euler is a decentralized and permissionless lending protocol operating on Ethereum and other EVM-compatible networks. Redesigned with Euler V2, the protocol is built around an innovative architecture called the Euler Vault Kit (EVK). This system enables the creation of isolated, customizable lending and borrowing markets for any ERC20 token. Moving away from traditional pool-based structures, it uses modular vaults to isolate the risk of each asset. This provides flexibility and security for both users and developers.

Euler is designed to enhance capital efficiency, isolate risks, and enable developers to create innovative financial products. The $EUL token serves as the protocol’s governance token, allowing users to vote on protocol changes and treasury management. Additionally, it incentivizes users through the Fee Flow system for distributing protocol fees and reward mechanisms.

Euler’s Key Features

Euler stands out in the DeFi world with its modular structure and innovative features. Here are the protocol’s core components and characteristics:

1. Permissionless Vault Creation with Euler Vault Kit (EVK)

The cornerstone of Euler V2, the EVK, allows anyone to create lending or borrowing vaults for any ERC20 token. Each vault focuses on a specific asset and creates isolated risk pools. Some vaults can only be used as collateral (non-borrowable), strengthening risk management. Vaults are compliant with the ERC4626 standard and tokenize lending markets.

2. Modular Architecture

Euler consists of separate, replaceable components such as vaults, price oracles, interest rate models (IRMs), and hook targets. This modular structure ensures that each vault is customizable. For instance, different price oracles (Chainlink, Pyth, Redstone, etc.) or interest rate models can be selected for a vault.

3. Isolated Risk Management

Each vault operates as an independent market, preventing risks in one market from directly affecting others. This reduces systemic risks and enhances the protocol’s resilience. The Ethereum Vault Connector (EVC) coordinates interactions between vaults, securely managing collateral and borrowing operations.

4. Advanced Features

• Hook Targets (Hooks): Used to add custom logic to vaults. For example, a vault can perform specific checks (access control, security audits, etc.) before deposits or borrowing.

• EVC: A smart contract that facilitates interactions between vaults, offering features like batch calls, sub-accounts, and permission-based execution.

• Price Oracles: Integrates with various providers (Chainlink, Pyth, Redstone, Chronicle, etc.) to provide customizable price data for vaults.

• Interest Rate Models (IRM): Dynamically determines lending and borrowing interest rates for each vault based on its utilization rate.

5. Integrated DEX with EulerSwap

EulerSwap offers a decentralized exchange (DEX) integrated with Uniswap v4’s hook architecture. Users can swap assets, earn lending yield, and use the same assets as collateral simultaneously. This enhances capital efficiency and prevents liquidity fragmentation. The single-owner pool model gives liquidity providers full control.

6. Reward System

Euler incentivizes users through both on-chain and off-chain reward mechanisms:

• Reward Streams: Distributes multiple reward tokens in a permissionless and trustless manner. Users can earn rewards without locking their assets.

• Merkl Integration: Off-chain rewards are distributed with updates every 8-12 hours, and users can claim them via the Euler app or Merkl dashboard.

7. Risk Management

Euler strengthens risk management with isolated markets, vault-specific loan-to-value (LTV) ratios, and liquidation mechanisms. Risk Curators manage risks through collateral selection, LTV ratios, and oracle choices. Earn Vaults offer optimized strategies for passive yields and are actively managed by risk curators.

How Euler (EUL) Works

Euler enables users to perform lending, borrowing, and swapping operations. The workflow is as follows:

1. Vault Creation: Users or developers can create vaults for any ERC20 token using the EVK.

2. Deposits and Borrowing: Users deposit assets into vaults to earn yield and use these assets as collateral to borrow from other vaults.

3. EVC Interaction: The EVC coordinates inter-vault operations, performs batch transactions, and provides risk isolation through sub-accounts.

4. Rewards and Governance: Users participate in reward programs to earn $EUL or other tokens. $EUL holders vote to guide the protocol’s direction.

5. Swapping with EulerSwap: Users can swap assets via EulerSwap while benefiting from lending yield and collateral advantages.

Euler (EUL) Tokenomics

$EUL is the native governance token of the Euler protocol, with a total supply of 27,182,818 (in homage to Euler’s number). The token distribution is as follows:

• Euler DAO: 34% (approximately 9.24 million EUL) for treasury and user rewards.

• Euler Foundation: 3.7% (approximately 1 million EUL) for ecosystem growth.

• Strategic Partners: 39.5% (approximately 10.74 million EUL) to partners like Encode, Lemniscap, and Paradigm.

• Euler Labs: 26.5% (approximately 7.2 million EUL) for founders and contributors.

• Protocol-Owned Liquidity: Provided on Balancer v2, Aera, Arrakis, and Uniswap v3.

Token Utility:

• Governance: Voting on protocol changes and treasury management.

• Fee Flow Auction: Exchanging protocol fees for $EUL.

• Rewards: Incentivizing users (e.g., rEUL rewards convert 1:1 to EUL over six months).

Euler Investors

Euler is backed by strong investor support. It raised funds in Series A and seed rounds led by Paradigm and Coinbase Ventures. Other notable investors include CMT Digital, Jump Crypto, Wintermute, Divergence Ventures, Jane Street Capital, Lemniscap, Haun Ventures, Morningstar Ventures, Uniswap Labs Ventures, Ryan Sean Adams, DOUBLETOP, Cluster Capital, Block0, LAUNCHub Ventures, M31 Capital, FTX Ventures, Kain Warwick, Anthony Sassano, David Hoffman, Hasu, Josh Buckley, Luke Youngblood, Ric Burton, Danilo S. Carlucci, Supriyo Roy, and Xin Wang. These investors reflect confidence in Euler’s innovative vision in the DeFi space.

Euler Team

Euler was founded in 2021 by Michael Bentley, Jack Prior, and Doug Hoyte. Michael Bentley (CEO) drives the protocol’s vision, while Jack Prior and Doug Hoyte strengthen its technical infrastructure. Brandon N. (COO) manages operations, and Laurence E. D. (Special Advisor) provides strategic guidance. The team consists of experienced experts in DeFi and blockchain.

Official Links

• Website
• X (Twitter)
• Whitepaper

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This structure eliminates the limitations of traditional staking methods and offers a system that maximizes capital efficiency. Haedal Protocol is not just a staking platform; it also provides sustainable yield opportunities through protocol-based solutions like Haedal Market Maker (HMM), establishing a comprehensive DeFi infrastructure.

The Primary Objective of Haedal Protocol

Haedal Protocol allows users without technical expertise to stake their SUI tokens by delegating them to reliable validators. Instead of locking their funds as in classic staking systems, users receive haSUI tokens. These tokens can be used as liquidity assets and offer yield potential.

Why Liquid Staking?

The Sui network operates on a Delegated Proof of Stake (DPoS) mechanism, which requires a significant amount of SUI tokens to be staked for effective operation. However, not all users have the technical capability to run a validator.

You Might Be Interested In: Elon Musk Talks About the Name of a New Memecoin!

Haedal Protocol addresses this need by allowing users to stake their SUI tokens and receive haSUI in return. This enables users to earn staking rewards while maintaining the ability to utilize their tokens in DeFi applications.

What is the haSUI Token?

haSUI is the liquid staking token provided to users who stake their SUI tokens through Haedal Protocol. It represents the value of the staked asset and the accumulated staking rewards. Over time, its value increases, allowing users to passively grow their capital. Additionally, haSUI can be actively used in Sui DeFi protocols for lending, liquidity provision, and farming activities.

Haedal Market Maker (HMM)

Haedal Market Maker (HMM) is an automated market maker protocol developed by Haedal Protocol. It features high capital efficiency, low-risk transaction structures, and resistance to MEV attacks.

• High Capital Efficiency: Utilizes narrower trading ranges compared to CLAMM pools, optimizing capital usage.
• Low Drawdown Risk: The high transaction volume of Sui ensures immediate reflection of price fluctuations in liquidity positions.
• Anti-MEV Feature: Naturally resistant to front-run and sandwich attacks.

This system creates a sustainable passive income model for haSUI holders.

Products of Haedal Protocol

• Stake Platform: Users stake SUI tokens to receive haSUI, with both automatic and manual options available.
• DeFi Integrations: haSUI tokens can be used in DeFi protocols for lending, borrowing, and farming activities.
• HaeVault: A gamified staking product that offers an interactive vault system for users.

What is the HAEDAL Token?

HAEDAL is the native governance token of Haedal Protocol. It plays an active role in the protocol’s management, supports the liquid staking infrastructure, and facilitates future DeFi integrations.

On April 29, 2025, HAEDAL was listed on the Binance Alpha platform, significantly enhancing Haedal Protocol‘s global visibility and liquidity.

Tokenomics

• Token Name: Haedal Protocol
• Ticker: HAEDAL
• Total Supply: 1,000,000,000 HAEDAL

Token Distribution

• Ecosystem Incentives (55%): Allocated for user incentives, partnerships, and protocol adoption.
• Liquidity Fund (10%): Used for initial liquidity provision, CEX/DEX support, and strategic initiatives.
• Investors (15%): Subject to a 6-month lock-up, followed by a 12-month linear vesting schedule.
• Team & Advisors (20%): Subject to a 12-month lock-up, followed by a 24-month linear vesting schedule.

Note: The current graphical distribution shows Ecosystem Incentives at 45.5%, with the remaining 9.5% included in the general distribution.

Investment Round Details

On January 3, 2025, Haedal Protocol completed its Seed investment round, attracting support from prominent investors such as OKX Ventures, Hashed Fund, Animoca Brands, Flow Traders, Dewhales, and Comma3 Ventures. This strong investor profile underscores the confidence and potential backing Haedal Protocol.

The Future of Haedal Protocol

• Holds the highest TVL among liquid staking protocols on Sui.
• Achieved global recognition through its listing on Binance Alpha.
• Implements a comprehensive token distribution plan and sustainable yield models.
• Anticipates the announcement of new products and detailed tokenomics updates.

Official Links

• Website: Haedal
• X (Twitter): Haedal X
• Discord: Haedal Discord
• Whitepaper: Haedal Whitepaper

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What is Fluid (FLUID)? What Does It Do?

Fluid is a decentralized finance (DeFi) protocol focused on lending and liquidity. This system includes decentralized exchanges (DEX), staking mechanisms, and other exciting features. Fluid claims to be one of the best DeFi lending protocols in terms of flexibility, security, and sophistication.

The Fluid protocol is part of the Instadapp ecosystem, founded in 2019 by brothers Sowmay and Samyak Jain. Initially trained in accounting, the brothers dropped out of university after winning the ETHIndia hackathon. They focused on developing “middleware software” to bring the exciting features of Web3 finance to users.

After raising $10 million in funding from Standard Crypto, the Jain brothers expanded their ecosystem, reaching the fourth position in total value locked across DeFi systems. Fluid, a new addition to the Instadapp ecosystem, was launched at the end of 2023. Drawing inspiration from their experiences with systems like Aave, Compound, and Uniswap, they aimed to develop a unique version of these DeFi protocols.

Fluid’s Goals

Fluid aims to combine the best features of multiple DeFi protocols into a single system. It seeks to become the most advanced, secure, flexible, and capital-efficient lending/borrowing system. In designing the system, the founders of Fluid focused on optimizing automated market maker (AMM) liquidity, reducing transaction gas fees, and ensuring accurate risk assessment. By merging many excellent features into one system, they hope to gain a competitive edge in the DeFi space.

In addition to offering advanced features, Fluid also aims to maintain the well-known accessibility of the Instadapp ecosystem. The Fluid system strives to offer a user-friendly interface that can be understood with just a few clicks. Like other products in the Instadapp ecosystem, Fluid prioritizes user satisfaction and aims to address the needs of multiple DeFi investors.

Click here to get project’s white-paper list.

How Does the Protocol Work?

The Fluid protocol operates on a complex combination of blockchain and software. While most of the user interfaces are processed using traditional coding methods, different blockchain tools such as Cardano, Arbitrum, and Ethereum are used to manage backend functions. Some of the key mechanisms Fluid uses to ensure smooth operation include:

Liquidity Layer: This is a centralized hub where Fluid brings together all of its services. It uses a unified AMM liquidity pool to manage usage rates, set automated limits, and apply interest rate models.

Automated Limits: These smart contracts dynamically adjust borrowing caps as market trends change. The limits continuously fluctuate to prevent abnormal borrowing or community losses in the market.

Lending Protocols: Fluid’s lending system follows the ERC-4626 standard to optimize transaction gas fees. It is designed to be equally fair for both borrowers and lenders.

Vault Protocol: Fluid’s Vault protocol is geared toward borrowers, offering enhanced capital efficiency, lower liquidation penalties, and a simple user experience.

DEX Protocol: The DEX protocol uses the AMM system to match market orders in the most efficient way possible. Based on Uniswap’s design, it also allows borrowing to be used as an asset.

What Does Fluid Provide?

Fluid offers a wide range of services that users can try out. The main features offered through the Fluid website and application include:

Vaults: Vaults function similarly to liquidity pools found in other DeFi systems. They consist of token pairs such as ETH and USDT. Each vault offers a supply rate and borrowing rate, allowing users to either lend or borrow by participating in a vault.

Lending: With Fluid, users can temporarily lend their tokens to others. The system supports a variety of tokens and provides a return of up to 1.5 times the initial investment. Fluid’s lending system also allows lenders to earn staking rewards, delegation power, and voting power even while their tokens are locked in the lending contract.

Borrowing: Fluid’s borrowing protocol enables users to temporarily borrow funds against smart collateral. The high collateral ratio allows users to borrow up to 95% of their collateral’s value. Additionally, it features a low liquidation penalty of only 0.1%, eliminating the fear of losing all your smart collateral when market trends change.

Click here to get project’s X account.

Fluid Roadmap

Launched at the end of 2023, Fluid is currently the third-largest DEX on Ethereum. So far, the development of Fluid has focused on expanding its pools and upgrading its vaults to support more assets, with the goal of offering users more lending and crypto trading options. However, Fluid has big plans for the future.

Like other protocols in the Instadapp ecosystem, Fluid is a fully community-governed project. Proposals for Fluid’s growth show that the Instadapp governance body believes in Fluid’s long-term development.

Users are looking to rebrand Fluid as an independent project and hope to add its own native token. They are also considering adding protocols to support market orders, such as derivatives, stablecoins, interest rate swaps, and forex trading.

Fluid Tokenomics

FLUID is the native token for the entire Instadapp system. Initially named INST, the token has recently been rebranded as FLUID to emphasize its crucial role in the operation of the Fluid DeFi protocol. As a service and governance token, FLUID is responsible for managing governance votes, paying fees, and everything in between. Like INST, the total supply of FLUID will be 100 million tokens. However, the rebranding of INST required some adjustments to the token distribution schedule.

The new distribution for FLUID tokens will be as follows:

• Community: 55%
• Team: 24%
• Investors: 12%
• Future ecosystem partners: 8%
• Advisors: 1%

Founding Team

Sowmay and Samyak Jain are Indian brothers who founded Fluid by working in the decentralized finance (DeFi) space.

• Sowmay Jain: Co-Founder and CEO, also a co-founder of Instadapp.
• Samyak Jain: Co-Founder and CTO, also a co-founder of Instadapp.

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