Bankless Alpha Leak | The Bull Case for Euler
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Oct 8, 2022 Michael Bentley, co-founder of Euler, dives into the innovative world of decentralized lending. He outlines Euler's unique approach, contrasting it with established platforms like Compound and Aave. The discussion delves into the intricacies of collateral risk management and introduces a tiered asset classification system. Bentley sheds light on Euler's pioneering liquidation strategies, including a Dutch auction model, and explores the significance of its DAO and governance token, $EUL, in shaping the future of decentralized finance.
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Euler's Innovation
- Euler is a permissionless lending protocol similar to Compound and Aave.
- It introduces innovations, particularly in risk management.
Key Differentiators of Euler
- Compound and Aave face limitations in listing every token due to oracle costs and collateral risks.
- Euler addresses these challenges through a comprehensive risk framework.
Oracle Costs as Limiting Factor
- Listing every token in Compound or Aave is restricted by oracle costs.
- Chainlink oracles are expensive, especially during volatile periods when accurate pricing is crucial.