Euler Review
Governance limits enforced permanently in code
of 10
Euler publishes hard bounds on what governance may do — an interest fee that must sit between 10% and 100%, a protocol share capped at 50% regardless of what is requested — and states those limits are enforced permanently for non-upgradeable vaults.
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Licence
BUSL-1.1, change date 24 Apr 2029; Vault Connector is GPL-2.0
Interest fee range
10% to 100%, guaranteed
Protocol fee share
Capped at 50%
Liquidation discount
Set per vault; defaults to 0
Audits
12 reports, 10 firms
Scores
Each criterion carries equal weight. The overall score is the average of these 5 scores — (8.0 + 4.0 + 6.0 + 7.0 + 9.0) ÷ 5 = 6.8.
Pros
- Interest fee constrained to a guaranteed 10% to 100% range, enforced by the protocol
- Protocol fee share capped at 50%: vaults ignore any higher value returned by config
- States that for non-upgradeable vaults, limits on governance are enforced permanently
- Vaults can be created with no governor at all
- Twelve audit reports from ten firms including OpenZeppelin, Spearbit, ChainSecurity and Certora
Cons
- Business Source License 1.1 with a change date of 24 April 2029, the second longest here
- Maximum liquidation discount defaults to zero and must be set by each vault creator
- No timelock duration is stated
- Liquidation terms vary per vault rather than being protocol-wide
Bounds that governance cannot exceed
Euler documents that vaults reject an interest fee outside the 10% to 100% guaranteed range, and that if the protocol config returns a fee share above 50% the vault ignores it and uses 50%. These are limits written into the code rather than promises about how governance will behave.
The whitepaper goes further: what the config contract may control is strictly limited, and for non-upgradeable vaults those limits are enforced permanently. Vaults may also be created with no governor at all.
The per-vault trade-off
That flexibility means liquidation terms are not protocol-wide. The maximum liquidation discount defaults to zero, and the documentation warns vault creators must set it appropriately or no discount can be awarded. A borrower must read the specific vault, not the protocol.
Licence
BUSL-1.1 running to April 2029 — a long delay before it converts to GPL — though the Ethereum Vault Connector is GPL-2.0 today.
How it compares
Fluid
Four audit firms, almost nothing else published
Compound
Timelock-controlled, with a lapsed licence date
Radiant Capital
72-hour timelock, no licence at all
Spark
Publishes the close factor that most protocols hide
Silo Finance
Liquidation fee fixed at deployment, forever
Aave
49 audit reports and a stated governance delay
Kamino
Publishes what it charges, per market
Venus Protocol
The most precisely documented governance delays
Morpho
GPL-licensed with published liquidation curve
Sources
Scored from published primary sources rather than hands-on use. Every figure above comes from one of the pages below, on the date shown. Manufacturers change prices and specifications without notice — if something here no longer matches the source, tell us and we will correct it.
- 1.Euler Vault Kit — whitepaper (fees, governance limits, liquidation) — checked
- 2.Euler Vault Kit — LICENSE — checked
- 3.Euler Vault Kit — audits — checked
Frequently asked questions
What fees can Euler governance set?
Interest fees are constrained to a guaranteed range of 10% to 100%, and the protocol fee share is capped at 50% — vaults ignore any higher value.
Is Euler open source?
Not yet. The Euler Vault Kit is under Business Source License 1.1 with a change date of 24 April 2029, converting to GPL-2.0-or-later; the Ethereum Vault Connector is GPL-2.0 already.
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