Key Notes
- Euler has experienced remarkable growth, with its TVL surging from $8 million to $216 million since October 2024, achieving $270 million in deposit growth with just $1.1 million in incentives.
- The platform implemented innovative vault-based lending in its v2 update and launched rEUL, a token pegged to locked EUL that supports reward distribution throughout the ecosystem.
- Strategic partnerships are expanding Euler's reach, with Usual leveraging its design for a direct deposit module and Bunni announcing advanced rehypothecation integration to optimize returns.
Euler , the cryptocurrency lending and borrowing platform, is now live on Sonic, introducing a suite of features aimed at enhancing lending capabilities and decentralized features within the Sonic ecosystem.
The platform announced that the integration with Sonic will be marked by a substantial reward program offering $100,000 in rEUL incentives to early users. The launch brings several key cryptocurrency markets to the Sonic ecosystem, curated by MEV and Re7. Users can now engage with multiple digital assets, including scETH, USDC.e, and scUSD, among others.
Users can lend, borrow and loop all of Sonic's major assets including: $stS , $wS , $scETH , $USDC.e , $scUSD , $wOS https://t.co/NezcW59Wmp pic.twitter.com/SCU6hC6sgW
— Euler Labs🛢️🇬🇧 (@eulerfinance) February 17, 2025
Additionally, users will benefit from looping strategies, allowing them to maximize returns through systematic borrowing and lending. Re7 Labs has introduced specific earning opportunities through scUSD borrowing against USDC, while MEV Capital offers earning potential for users supplying scETH or scUSD.
Euler co-founder Michael Bentley commented on the integration, praising Sonic’s success. He expressed enthusiasm about Euler becoming part of a growing DeFi network.
Sonic has been killing it recently.
Major resurgence not to dissimilar to another core DeFi project I know!
Excited to see Euler join another thriving DeFi ecosystem. https://t.co/QQf5dZqaxj
— Michael Bentley (@euler_mab) February 17, 2025
Innovative Strategies and Market Expansions
Euler has gained traction in the DeFi space through the introduction of vault-based lending in its v2 update, as well as the release of rEUL, a token pegged to locked EUL, launched in November 2024. rEUL supports the distribution of rewards within the ecosystem.
This expansion has positioned Euler as a leading platform in the DeFi space, with its total value locked (TVL) growing significantly. Since October 2024, Euler’s TVL has surged from $8 million to $216 million.
Matt Casto, a researcher, wrote about Euler’s strong performance in January. He noted a $270 million increase in total deposits while using only $1.1 million in token incentives. He said :
“January was an extremely successful month for Euler. What’s overlooked is that they grew total deposits by $270mn while only spending about $1.1mn in token incentives. $245 of TVL for every $1 of emissions is far under what protocols are spending for a fraction of Euler’s m/m growth.”
Growth, Performance, and Key Partnerships
Recently, Usual leveraged Euler’s flexible design to introduce a direct deposit module for borrowing USD0 against USD0++. The Usual Stability Loan (USL), developed with the Euler Vault Kit, is the first to utilize Euler’s hooks for establishing permissioned markets.
Additionally, decentralized exchange Bunni announced on February 3 that its v2 will collaborate with Euler v2 to introduce an advanced rehypothecation integration aimed at optimizing liquidity provider returns.
The exchange noted that Euler v2’s modular framework brings extensive customization, flexibility, and capital efficiency, enabling isolated markets, innovative lending strategies, and rEUL rewards. This partnership expands options for Bunni LPs, enhancing yield opportunities through Euler’s vault strategies.
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