Euler Finance, a crypto borrow and lend platform, has achieved record-breaking success in DeFi lending after a $200 million hack in March 2023. The protocol’s new version boasts all-time highs in total value locked (TVL) and total borrows, thanks to its highly customizable hub.
Euler Finance‘s Resilient Comeback
Crypto borrow and lend platform Euler Finance has made a remarkable recovery from a debilitating $200 million hack in March 2023. The protocol’s team, led by CEO Michael Bentley, decided to rebuild Euler from scratch instead of shutting it down. This decision has paid off, with the platform now boasting new all-time highs in total value locked (TVL) and total borrows.
Euler Finance is a decentralized lending protocol built on Ethereum.
It allows users to lend and borrow cryptocurrencies, providing liquidity to the market.
The platform uses a novel approach called 'variable APY' to adjust interest rates in real-time, based on market conditions.
This enables lenders to earn higher returns during times of high demand.
Euler Finance also features a unique risk management system, which helps mitigate potential losses for lenders.
A Customizable Hub for Lending
The original Euler was described as ‘a specific product: one lending market.‘ However, CEO Bentley emphasized that there isn’t a one-size-fits-all approach to lending and borrowing. The new vision for Euler is a highly customizable hub where users can tailor their pools’ risk, yields, and asset parameters. This differentiates Euler from other protocols in the market.
Overcoming Market Skepticism
Despite the team’s efforts, the market was initially skeptical about Euler‘s chances of success. The protocol had missed much of 2024’s DeFi surge while undergoing pre-launch security reviews. However, with a relatively modest incentives budget of ‘a few million‘ dollars-worth of EUL tokens, Euler was able to attract users back.
Product Market Fit and Growth
CEO Bentley attributed most of the growth to ‘product market fit.‘ The protocol’s success can be attributed to its ability to meet the needs of its users. Even in a bear market, Euler continues to grow, with it being one of only two lending protocols in the top 10 to see growth in active loans over the last month.
Product market fit is a term coined by Marc Andreessen, co-founder of Netscape and venture capitalist at Andreessen Horowitz.
It refers to the moment when a product or service meets the needs of its target market, resulting in rapid growth and adoption.
To achieve product market fit, companies must understand their customers' pain points, develop a unique value proposition, and iterate on their product until it resonates with the market.
According to Andreessen, achieving product market fit is crucial for startups to succeed, as it allows them to scale quickly and efficiently.
A Bright Future Ahead
CEO Michael Bentley expressed confidence in Euler‘s future prospects, despite the challenges posed by a potential bear market. The success of Euler v2 so far has shown that the protocol is well-positioned for continued growth relative to other opportunities in the market.
- coindesk.com | Euler Set for Another Strong Year in DeFi Lending
