# Euler

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<table data-card-size="large" data-view="cards"><thead><tr><th></th><th></th><th data-hidden data-card-target data-type="content-ref"></th><th data-hidden data-card-cover data-type="image">Cover image</th><th data-hidden data-card-cover-dark data-type="image">Cover image (dark)</th></tr></thead><tbody><tr><td><strong>KPK USDC Prime RWA</strong></td><td>Ethereum</td><td><a href="/pages/fXmgLC1uFBcvcVa4MCfR">/pages/fXmgLC1uFBcvcVa4MCfR</a></td><td><a href="/files/qDSgQIScNS9LrKsZMHgw">/files/qDSgQIScNS9LrKsZMHgw</a></td><td><a href="/files/0RE5ZSeuWnMeYHcGkutV">/files/0RE5ZSeuWnMeYHcGkutV</a></td></tr><tr><td><strong>KPK ETH Yield Term</strong></td><td>Ethereum</td><td><a href="/pages/PvaLV5xmlaa5ZZst5Iq2">/pages/PvaLV5xmlaa5ZZst5Iq2</a></td><td><a href="/files/zkhW07QYjO1IvSHu3vhv">/files/zkhW07QYjO1IvSHu3vhv</a></td><td><a href="/files/zKANSBkK3V9v9FitpjgF">/files/zKANSBkK3V9v9FitpjgF</a></td></tr></tbody></table>

### Protocol overview

[Euler](https://www.euler.finance/) is a modular lending protocol. It combines **Euler Earn**, the Euler Vault Kit (**EVK**), and the Ethereum Vault Connector (**EVC**). Euler Earn is a non-custodial ERC-4626 meta-vault that accepts a single deposit asset and allocates it across approved strategies; it is built on a fork of Morpho v1's MetaMorpho codebase, adapted by the Euler team, so readers familiar with Morpho v1 will recognise a similar governance and timelock structure. EVK vaults are ERC-4626 credit vaults with borrowing functionality. The EVC coordinates collateral management and liquidation flows across vaults. Together, this stack allows KPK to curate not only top-level allocations but also the structure and risk controls of the underlying borrow markets on which those allocations depend.

### Curator model

KPK’s role on Euler is broader than on Morpho. In addition to managing the **Euler Earn** vault, KPK curates the core governed borrow markets that underpin its Euler strategies. This includes setting caps and LTV/LLTV parameters, configuring oracle routing, and defining operational controls for the markets under KPK governance. All decisions follow the [**Risk Framework**](/vaults/infrastructure/risk-framework.md), which governs eligibility criteria, risk tiering, and monitoring cadence.

KPK’s Euler curation focuses on three areas:<br>

1. <mark style="color:$primary;">**Core market design and withdrawal reliability**</mark>\
   KPK does not only choose allocations. It also curates the core borrow markets the Earn vault is designed around. That means selecting approved markets, assigning risk tiers, setting exposure limits, configuring oracle routing, and managing the conditions under which capital can move between markets. Depending on the vault, enabled markets may also include complementary yield sources, KPK-curated or third-party-curated, that improve capital efficiency without altering the vault’s overall risk posture.<br>
2. **Specialised market mechanics**\
   For products with non-standard pricing or access patterns, KPK governs additional market-level components. This includes cyclical Interest Rate Models for calendar-aligned fixed-rate markets, access-control hooks that restrict who can supply to a borrow market, and, for transfer-restricted RWAs, compliant ERC-4626 collateral wrappers governed by the asset issuer. KPK does not govern issuer-controlled wrappers; it curates the markets that accept them as collateral.<br>
3. **Real-time automation and monitoring**\
   Vaults are monitored continuously by agents operated by KPK. These are deterministic programs with scoped permissions. They monitor utilisation, available liquidity, APY shifts, oracle health, and price divergence, and can rebalance across approved markets or reduce exposure within predefined limits.

* **Rebalancing agent:** improves capital efficiency by reallocating across approved markets using a rules-based approach, subject to liquidity and safety checks.
* **Exit agent:** responds to risk alerts within seconds by reducing or disabling exposure, increasing withdrawable liquidity, and prioritising safe exits within predefined limits.\
  \ <mark style="color:$primary;">This combination supports both steady, rules-driven allocation and fast incident response. For the technical design and allowed actions, see</mark> [<mark style="color:$primary;">Automation</mark>](/vaults/infrastructure/automation.md)<mark style="color:$primary;">.</mark>

### Vault architecture

KPK’s Euler setup can involve up to five layers, depending on the product:

* **Euler Earn vault**: the user-facing ERC-4626 vault that accepts a single deposit asset and allocates across approved strategies.
* **Core KPK-governed borrow markets**: EVK credit vaults where KPK governs key market parameters such as caps, LTV/LLTV, oracle routing, and operational controls.
* **Market mechanics layer**: where the product requires it, KPK installs specialised components on the borrow markets, including cyclical Interest Rate Models for fixed-rate markets and access-control hooks that restrict who can supply.
* **Complementary markets**: where appropriate, the Earn vault may also allocate to selected markets curated by KPK or third parties that fit the strategy’s risk profile.
* **Issuer-governed collateral vaults**: compliant ERC-4626 wrappers around certain transfer-restricted RWA assets, used as collateral within the underlying borrow markets.

#### Governance

Governance on Euler spans the **Euler Earn** vault, the underlying borrow markets, and, where applicable, shared infrastructure such as the Oracle Router. Exact role holders, timelocks, and scoped agent permissions are documented on each vault page.

### Vault configuration

Each vault page documents the enabled markets, allocation caps, risk tiers, LTV/LLTV parameters, oracle setup, governance addresses, and agent permissions for that strategy. Where relevant, it also links the collateral vaults used in the underlying market structure.<br>

* [Ethereum](/vaults/vaults/euler/ethereum.md)
  * [USDC Prime RWA](/vaults/vaults/euler/ethereum/usdc-rwa.md)
  * [ETH Yield Term](/vaults/vaults/euler/ethereum/eth-yield-term.md)


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