Question 1

What is EUL?

Accepted Answer

EUL is the native ERC-20 governance token of the Euler protocol. Euler is modular lending infrastructure for creating and using on-chain credit markets; EUL represents voting power in Euler DAO governance and can also serve as a reward for protocol participation. Holding tokens does not mean a holder can directly deploy DAO assets. Holders can vote on protocol changes or treasury management; approved matters must still execute the relevant on-chain transactions according to the multisignature rules of the treasury or operational Safe.

Question 2

How are EUL supply and new issuance arranged?

Accepted Answer

EUL has a total supply of 27,182,818 tokens. This total describes the total supply recorded by the token contract; it is not equivalent to the circulating supply, tradable amount, or DAO treasury balance at a given time. The EUL contract on Ethereum allows ADMIN_ROLE holders to mint additional tokens, but no more than once every 365 days and up to 2.718% of total supply. Based on the current total supply, this cap is approximately 738,905 EUL. Minted tokens are sent to the address returned by the contract's treasury() function; therefore, whether additional issuance occurs and its subsequent use depend on the permission holders and relevant governance and treasury arrangements.

Question 3

How is rEUL earned, and why is it not equivalent to EUL?

Accepted Answer

rEUL is a locked EUL reward designed to incentivize early Euler v2 participants, not a token freely exchangeable like ordinary EUL. Eligible supplying or borrowing activity in supported markets can accrue rEUL; reward calculation and distribution are handled by Merkl, and interface updates may take up to approximately 12 hours. Users first claim accrued rEUL to their wallet, and each separate claim immediately starts an independent vesting clock: 20% of the corresponding EUL vests immediately, while the remaining 80% vests linearly over six months. Because each claim has a different start time, rEUL, despite having an ERC-20-like interface, cannot actually be freely exchanged as a fungible asset; most locked rEUL also cannot be transferred to ordinary wallet addresses.

Question 4

What happens when rEUL is redeemed early?

Accepted Answer

rEUL claimed to a wallet can be redeemed for EUL at a target 1:1 ratio, but the actual redeemable amount depends on the vested proportion of that locked claim. After waiting the full six months, all corresponding EUL can be redeemed. Users can also redeem an individual lock before maturity; the contract burns the rEUL wrapper tokens for that lock, sends the vested EUL to the user, sends the unvested remainder to the remainderReceiver configured by that contract, and permanently closes that lock. What is burned here is the rEUL wrapper amount, not EUL, so EUL's totalSupply is not reduced.

Question 5

How did Fee Flow operate, and what did it mean for EUL?

Accepted Answer

Fee Flow was a continuous Dutch-auction mechanism that sold fee assets held by the controller and accepted EUL as payment; it was not a mechanism that automatically repurchased or burned EUL using EUL. This feature was shut down in April 2026, Euler's protocol fee rate is currently 0%, and the DAO may still reintroduce protocol fees through future governance. Under the historical mechanism, EUL payable in each round began at initPrice and declined linearly to zero over epochPeriod. Buyers submitted an asset-address list, recipient address, current round ID, deadline, and maximum acceptable payment; buy transferred the payment at that time to the immutable paymentReceiver and transferred the full balances of listed controller assets to the asset recipient. A new round began immediately after settlement, with its initial price calculated as the current round's payment multiplied by priceMultiplier, subject to minInitPrice and contract caps.

Question 6

Does a 0% protocol fee rate mean using Euler has no fees at all?

Accepted Answer

“Protocol fees are 0%” only means Euler currently does not charge protocol-level fees; it does not mean every Euler-related operation is fee-free. Vaults supporting this setting may still have separate fees configured by a curator or vault operator, such as EVK interest fees or EulerEarn performance fees. The collectors, configuration locations, and applicable vaults of these two fee types may differ. To determine the actual cost of a use, distinguish the protocol-level fee rate, the fee settings of the specific vault, and network gas fees required for the on-chain transaction itself; Fee Flow's current shutdown cannot be used to infer that all costs are zero.

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