Epicenter - Learn about Crypto, Blockchain, Ethereum, Bitcoin and Distributed Technologies Euler: The DeFi Super App - Michael Bentley
Sep 14, 2025
Michael Bentley, CEO and co-founder of Euler Labs, discusses the innovative DeFi lending protocol, Euler, which allows users to lend and borrow a wide range of crypto assets. He shares insights into Euler's unique risk management strategies influenced by evolutionary game theory and the importance of permissionless modularity. The conversation touches on EulerSwap, their new DEX, and the impact of AI on enhancing DeFi operations. Bentley also addresses privacy concerns and the platform's roadmap, showcasing Euler's innovative approach to capital efficiency and market stability.
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Fair Auctions Reduce Liquidation Costs
- Euler's engineering focus produced a unique liquidation system using Dutch auctions to minimize liquidation costs.
- This auction approach often reduces liquidation losses from potentially enormous penalties to just small practical costs.
The 2023 Exploit And Recovery
- Euler suffered a major exploit in 2023 caused by a flawed patch for an uninitialized exchange rate bug.
- The team negotiated and recovered $240 million over several weeks, returning funds to users with a surplus.
V2: A Toolkit Not A Single Product
- Euler V2 became a modular toolkit enabling many credit-market designs rather than one monolithic product.
- The architecture lets independent curators build tailored markets that match different user risk preferences.