No Euler No Napier

Published:

January 30, 2025

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  • napier

    Napier

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No Euler No Napier

Napier v2 is expected to launch in February, enabling anyone to freely build yield derivative products on almost all yield-bearing assets across nearly all EVM chains from day one.

We are excited to onboard Euler as a key curator of Napier v2 and the primary lending market for PTs. The collaboration between Euler and Napier further expands the fully open technological foundation for DeFi, benefiting various individuals and entities.

About Napier v2?

The Napier v2 is a modular yield tokenization protocol, enabling users to fix, trade yield and build without limits on the Ethereum Virtual Machine.

This focus brings unique benefits to Napier participants:

  • Flexibility through Modularity: Curators (market owners) control and provide every aspect of yield tokenization—supported yield assets, maturities and caps, business model adjustments, behavioral economics mechanisms, single or multiple authority delegation, emergency stop mechanisms, and more. Any participant can freely join or opt out of the PT/YT ecosystem in Napier v2 under their own economic reasoning.
  • Risk Minimization through Immutability: An immutable core contract on the Ethereum Virtual Machine removes external governance risk and single points of failure. A minimal yet flexible design further reduces risk.
  • Active Ownership: Beyond autonomous software extensibility, achieving real scale and adoption requires active ownership by each participant. Napier v2’s economically and permission-wise divisible software makes this possible.

You can find a more detailed explanation of Napier v2 overview in this article.

About is Euler v2

Euler v2 is a modular lending platform that will have two main components: 1) the Euler Vault Kit (EVK), which empowers builders to deploy and chain together their own customised lending vaults in a permissionless manner; and 2) the Ethereum Vault Connector (EVC), a powerful, immutable, primitive which give vaults superpowers by allowing their use as collateral for other vaults. Together, the EVK and EVC provide the flexibility to build or recreate any type of pre-existing or future-state lending product inside the Euler ecosystem.

Euler v2 provides a best-in-class experience for lenders and traders alike, by providing unparalleled access to diverse risk/reward opportunities, new collateral options, lower net borrowing costs, advanced risk management tools such as sub-accounts and profit and loss simulators, custom-built limit order types (including stop-loss and take-profit), and greatly reduced liquidation costs.

What does this enable?

Euler and Napier, as two unopinionated platforms, enable remarkable creations. This collaboration further expands the fully open technological foundation for DeFi, providing significant benefits to developers, builders, and projects.

By integrating these platforms, governors on Euler v2 can expand their range of services, offering users new opportunities for fixed-yield lending, borrowing, and yield trading. At the same time, they can earn additional revenue through curating Napier v2.

Additionally, Euler DAO utilizes Napier v2 technology to tokenize lending positions on Euler Prime (a market governed by Euler DAO for borrowing stable assets against blue-chip crypto assets) by splitting them into principal and yield components. This makes the yields tradable and composable, creating even more opportunities for both users.