Euler Continues Comeback With Euler Swap DEX Launch

Decentralized finance (DeFi) lending protocol Euler Finance continues to thrive after launching its v2 in September, and is now wading into the decentralized exchange (DEX) space with the launch of Euler Swap.

Euler Swap touts a “smarter DEX” that includes lending-boosted yield, deep liquidity, and native support for liquidity provision (LP) as collateral backed by Euler lending.

The DEX boasts Uniswap v4 compatibility, which integrates with Euler vaults to unlock stale capital and address market inefficiencies, such as expensive rebalancing and the lack of utility for collateral positions.

On Euler Swap, LP pair-supplied assets are deposited into Euler’s vaults, allowing the liquidity position to earn lending yield and act as collateral for borrowing.

The DEX also introduces a custom automated market maker (AMM) curve design, which can be customized to each LP's liking.

Also, Euler Swap pools are owned and controlled by single LPs, whereas traditional AMMs use shared liquidity pools. This feature allows for the highly customizable curve design, and enables various leverage and collateral strategies, which is “ideal for DAOs, token teams, and sophisticated market makers,” according to the documentation.

Euler Rises from the Ashes

Euler’s total value locked (TVL) has gone vertical since its relaunch, and is now within shouting distance of the $1 billion mark, at $973 million in less than nine months.

Euler’s previous all-time high TVL was just shy of $200 million in 2022, before it suffered a massive hit from the collapse of FTX in November and was subsequently wiped out completely after a protocol hack in 2023.

The product's newfound success has also propelled the EUL token higher. EUL is currently trading at an all-time high market capitalization of $170 million, after reaching as low as $27 million in July 2023 after the protocol hack. EUL is up 9% over the last 30 days and 102% over the last year.