Michael Bentley
@euler_mab
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Co-founder and CEO of Euler Labs @eulerfinance. Previously dynamical systems postdoctoral research scientist @UniofOxford.
Ethereum
Joined September 2020
@wassielawyer I feel gaslit as an outsider. It’s so wild to watch. Political discourse keeps sinking to new lows. It’s not enough to dislike Trump’s brand of politics and point out the flaws in his character and ideas. No, he needs to be literal Hitler.
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A few words about recent events. These have been the hardest days of my life and I’m absolutely devastated for everyone who’s been affected.
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If you are borrowing ETH ahead of the Merge, you might want to read this. With just a few days to go we can see more clearly what DAOs are doing to prepare and how it impacts lenders and borrowers.
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Let's have a conversation about how to manipulate @Uniswap v3's time-weighted average price (TWAP) oracles. How would you do it? How much would it cost? How much profit could you make? . Read on, or check out my short paper here: .
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A lot is being said about the stETH/ETH price peg right now. Here's some thoughts on how we got here, and what can be done in future to prevent similar issues arising.
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THE THING IS, PROTOCOLS JUST NEED TO STOP USING ILLIQUID ASSETS AS COLLATERAL. THEY KEEP GETTING EXPLOITED AND BLAMING THE ORACLE, BUT THEY SHOULD BE MUCH MORE CONSERVATIVE WHEN CHOOSING COLLATERALS AND/OR WORK TO ISOLATE RISKS WHEN LETTING PEOPLE BORROW LONG-TAIL VOLATILE ASSETS
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Euler V1 is by far the most advanced liquidity protocol in terms of features, security, and scalability - nothing else even comes close. We've been in safe mode. Now we are ready to grow. It's time to disrupt the incumbents.🧵.
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Euler is coming back, LFG!. Euler v2 has been almost two years in development and it will comfortably be the most powerful lending protocol on the market when it goes live. We've abstracted everything a lending protocol needs to be successful and rebuilt the foundations up in a.
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Introducing LAMMbert, a concentrated liquidity AMM defined by the Lambert W function. I'll confess that just over a year ago I had never even heard of the Lambert W (LW) function. Now I seem to see people talk about it all the time. I first came across it myself whilst doing
Ok, after this, I gonna chill. Lambert W0 function (product log). h/t @0xfoobar .
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What comes after testnet? Mainnet, of course! . We're extremely pleased to announce that Euler is now live on Ethereum Mainnet for the community to use and test!.
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I am working tirelessly right now to help people investigate the attack on Euler. But this misinformation is helping fuel threats against me and my family and I have to ask for it to stop please. Sherlock audited the code. Yesterday they paid a claim.
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Had my hopes on it being EUL, but congrats on what must have been a brutal selection process.
DYDX token approved to become native asset of upcoming dYdX Chain
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We spent a whole year developing Euler v2 only to find out all of crypto is going to literal zero in summer of 2024. Damn.
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Euler was many people's favourite lending protocol and grew market share in a brutal bear market. RIP. Euler v2 will be everyone's favourite lending protocol. Combined with EulerSwap and [redacted] there's plenty to be optimistic about. Lots of hard work ahead. LFG.
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2023 was a year full of twists and turns (to put it politely) for the Euler community. I can’t think of a better way to say goodbye to it than by telling the story of how it played out. I warn you now, It’s a lengthy story. So strap in. See my War and Peace blog post below. It
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The @opyn_ team are a class act. You won't meet smarter, nicer, more thoughtful people. It reflects terribly on the US that such people are their priority for enforcement, all the while there are 1000x more fraudsters, hackers and market manipulators here openly doing real harm.
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I am so grateful for the outpouring of support over the past few days. I want to thank each and every person who has reached out. I would also like to extend a special thank you to @functi0nZer0 for his kindness in helping to care for my family during this difficult time.
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Here's two innovations we developed @eulerfinance to prevent the bad debt scenario that arose on Aave today:. 1. Borrow factors.2. Protected collateral. We would be honoured if the Aave DAO wants to borrow these ideas. Excuse the pun. How do they work?.
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There is no such thing as uncollateralised lending. You always offer *something* as collateral. Your reputation. Your future income. Your freedom. It works in tradfi because state-level power exists to enforce the creation of new collateral classes.
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"The problem with Euler is that there's no drama or hype around it so people don't talk about it. It just quietly works really well.". Someone said this to me last week. Frustrating to hear tbh, but my conviction is that this is a feature not a bug in the long run.
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Protocols vs Products.I recently saw this claim: "If a smart contract is feature-oriented, then it is a product, not a protocol." . I thought this was an interesting distinction worth exploring in more detail, especially given the current trend of people advocating for the
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Wonder how many people have cried whilst watching Etherscan.
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Potential governance attack on Compound seems to have passed.
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"It's pronounced OIL-er, not YOU-ler, because it's named after this Swiss math guy who was studying compound interest, like hundreds of years ago, and discovered a transcendental number called e, which I don't really understand, but anyway, it's kind of cool, you know?"
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Oracle-free lending protocols. Lots of discussion about them recently. How do they work? Are they a good idea? As ever, this is all about trade-offs. Here's some meandering thoughts about them as we work on the relaunch of Euler.
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Observation on the @InverseFinance attack. Note that the attacker manipulated both the DOLA/INV price and the WETH/INV price. Why? . Because if they only manipulated the @SushiSwap pool from which the keep3r oracle was taken then they would have exposed an arbitrage opportunity.
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I never get asked "why is Euler called Euler?" . But I'm going to tell you anyway. Compound was taken.Compound interest is calculated as (1 + 1/n)^n.Take the limit of that to maximise your interest and you get e, Euler's constant. How is it pronounced you ask? "Euler.".
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The time immediately after an attack is crucial and I've done everything I can to support the recovery process. I've had to sacrifice time with my newborn son. I'll never forgive the attacker for that, but they can put things right and return funds to the EulerDAO Treasury ASAP.
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The EulerSwap equation is so beautiful. I'm cautiously optimistic that it might turn out to be the finest bit of mathematics I've ever done. It's not especially difficult, but just contains so much depth of meaning and symmetry.
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Wake up babe, new lending fork just dropped. [INSERT AUDITORS HERE].
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There is zero reason for anyone to be forking Compound or Aave or Morpho or Maker in today’s world. You can build your own versions of all of the above and much more using Euler v2. Get in touch if you’d like to learn how.
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Flattered by the number of Euler innovations copied into Aave v4. Sub-accounts, reactive rates, dynamic liquidation bonus, dynamic close factor. The list goes on.
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DeFi is a terrible misnomer. Personally I prefer the term 'Open Finance.'. DeFi has widespread adoption now so it's probably too late to change, but I think 'open' better captures the transparent, composable, (often) permissionless nature of most on-chain finance apps.
The crypto ecosystem is quite bad at naming things, too much techno-jargon and acronyms . They're called cryptocurrencies, but most tokens aren't trying to be currencies . NFTs? No Fucking Thanks, I mean come on, just call them digital collectibles.
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Chain abstraction is talked about a lot. Is it really such a good idea?. Chains have very different properties in terms of security, reliability, decentralisation, and more. Users should therefore care which chain they are entrusting to hold their assets, especially in DeFi.
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Pendle PT tokens from @pendle_fi are increasingly being used as collateral in lending markets to create high-yielding positions. Yet there are substantial challenges for creating and managing these kinds of markets using existing solutions. Here’s how Euler vaults can make life.
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Some animated debates about lending protocol design have been going around recently. Let me take you through my view of things and where I see Euler v2 and its unique ability to chain together vaults and build lending vault clusters fitting in. By the end of this thread I hope
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Did you notice that $EUL had a tokenomics upgrade?. Every few weeks all the fees collected by the protocol are auctioned off to the highest bidder. You can only bid using $EUL though. It's automated, decentralised and completely permissionless to participate in.
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@ivangbi_ It's totally dumb AF to try to do anything remotely legit. Would have been orders of magnitude more profitable to fork Compound or Aave, buy 100k followers on Twitter, 'fair launch' a token, give Binance 5% to list, sell, hand over to the community. Regulators wouldn't care and.
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Redemption rate now >95%. Aztec users + smart contract wallets have required a lot of work but will largely be complete very soon. Huge thanks to everyone who helped on those. Next up: the comeback.
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The narrative that lenders should somehow never lose in DeFi is very strange. Risk-free reward does not exist. People should be free to take risks. Sometimes they pay off, sometimes they don't. Any protocol which claims to provide risk-free rewards is lying to you.
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Out for a Christmas walk. The message is clear. Buy Ethereum coin.
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Wake up babe, new @eulerfinance dev just dropped. If it's a boy, we're going to name him Marc Zeller. That name deserves a second chance in life.
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Euler is live on Base! . It has been a veeery long time coming, as @jessepollak details below. The journey was a little harder than we expected, I'm not going to lie. Better late than never!.
fun history of Euler x @base: @euler_mab and the @eulerfinance team were literally one of the first 2-3 protocols who when we told them we were doing @base in early 2022 took us seriously and leaned in. me and him met in London, then did an event where we hinted at what was.
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$1,250,000 if you break Euler v2.
Welcome. to the new largest competition in history with @eulerfinance!. 💰 $1,250,000 USDC.🗓️ May 20th - June 17th.📍 @cantinaxyz . Invite only. Don't have one? Details below:
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Today AI is able to fake an ID screenshot for KYC. Yesterday someone used a deepfake on a video call to defraud $25m from a CFO. The dark web is already littered with thousands of hacked KYC databases. Seems like only a matter of time before KYC is dead.
New: inside the underground site where "neural networks" churn out fake IDs.- I tested, made two IDs in minutes .- used one to successfully bypass the identity verification check on a cryptocurrency exchange .- massive implications for crime, cybersecurity.
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Not many people know this but the day after the attack on Euler, @functi0nZer0 turned up at my house to help out in his dressing gown with chicken, lager and a fishing rod. Top man.
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Dear @SBF_FTX, I think you are throwing front end hosts under the bus. DeFi websites might look to the untrained eye like exchanges etc, but in practice they are purely information providers. Please can we all agree not to concede ground on this so soon?.
@SBF_FTX @ErikVoorhees Front ends are just tools for sharing info and creating JSON blobs. They are like cheque writing facilities. Nothing actually happens with the info until the user submits their JSON blob to the chain, which is usually done via another app entirely. Front ends aren't exchanges.
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I was holding my 7 month-old son on a walk moments ago and for the first time out of nowhere he said. "Daddy, why do people tag @inversebrah under your tweets?". I started to quietly tear up. He couldn’t see my face and I didn’t make a sound, but he said. “Don’t cry. It’s okay.”.
I was holding my two year old daughter on a walk moments ago and for the first time out of nowhere she said,. “God is good. God is real.”. I started to quietly tear up. She couldn’t see my face and I didn’t make a sound, but she said,. “Don’t cry. It’s okay.”.
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I want to thank the security experts who are working on leads for the investigation. There is little I can say publicly about this, but I want everyone to know that there is a large team of world-class individuals doing all they can night and day.
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Forex on Ethereum enabled by EUROC will be huge in my opinion. Institutions are going to find a way to trade and hedge over the weekend if there's global news. No doubt about that.
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Showing the relationships between credit markets in tradfi is difficult due to a lack of transparency. Not so on Euler, where relationships within the universe of vaults are clear as day. We’re working on a powerful explorer to visualise these. Wdyt so far?
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Going head to head with Trump was not on my list for 2024, but there you go.
*TRUMP'S 'WORLD LIBERTY FINANCIAL' IS A DEFI LENDING PLATFORM, WHITE PAPER SHOWS: COINDESK. Source: DB.
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Reading this?. Your brain just paid an energy premium on a call option to read this sentence too.
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You can build Morpho or Aave on Euler, but not the other way around. Euler is primitive infrastructure. The other two are opinionated products you can build using said infrastructure.
what's the best lending platform between Morpho and Aave @aixbt_agent?.
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For those asking, the USD0++ vault on Euler uses a market pricing oracle from @PythNetwork rather than being hard-coded to 1. Today's volatility therefore led to several liquidations among borrowers, as is to be expected with such events, but otherwise has caused no issues for.
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My son is nearly eight months old now. He's absolutely huge from feasting on the proceeds of all the EUL selling.
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Once again, in spite of the most hostile of conditions, DeFi proved that it works. CeFi is broken, not DeFi.
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The amount of love shown towards us at Euler the past week at @EthereumDenver has blown me away. Hands down the best conference I’ve ever been to.
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Hundreds of messages to get through today so please bear with if I've not responded. Really overwhelmed by the welcome back we've received.
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I'm absolutely blown away by the quality of these @variantfund founder fellowship pitches. Ignoring the charts and all the legal drama, there's a really bright future here with lots of cool new stuff being built.
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DeFi is insanely robust. Natural selection weeds out the weakest protocols. What is left is anti-fragile. Provably built to survive the most hostile of environments.
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I have huge respect for anyone building a lending protocol and trying to innovate in this area of DeFi. There's so many trade-offs and variables to consider. Alongside bridges it's one of the hardest of all protocol types to build, in my humble opinion.
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Euler has always been a security-minded project. The Euler smart contracts, including the vulnerable lines of code, were audited.
@crypto__theory @eulerfinance Euler in particular had 10audits from 6 diff firms, including a frontend audit which I've never seen in a defi protocol. It looked super solid. And most of these auditors already run automated scans through the code to find some of the most common stuff.
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If you squint hard enough there’s an argument this is bullish for DeFi. I think Uniswap will win and bring clarity for the industry in the US. The rest of the world will follow their lead.
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Ok, which one of you mfs did the Wrapped Ethereum Liquidity Program post on ethresearch?. I've been absolutely done here. Cropped my tweet criticising bridge yield to make me look like the leader of a new cult haha.
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The Euler Foundation has launched a $1M reward for any information that leads to the identification and arrest of the attacker. If you come across any clues on chain, Discord, Telegram, Twitter, or GitHub, please share them.
Today the Euler Foundation is launching a $1M reward in the hope that this provides additional incentive for information that leads to the Euler protocol attacker’s arrest and the return of all funds extracted by the attacker.
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Almost 5 years ago I began working on an idea for what I called 'reactive interest rates'. This GIF I made demonstrates how control theory can be used to stabilise utilisation of liquidity pools in the face of volatile external rate environments. This is how Euler was born.
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I may have finally cracked a key component of the fee maths for EulerSwap. Completely novel approach. Now to code it up and test. Back in the day I might've attempted it in solidity. Due to CEO induced brain rot, tonight I will be coding exclusively in JavaScript. IDGAF.
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It is pretty self-evident, in my opinion, that funds held in a bridge should not be redeployed to earn yield. Got nothing to do with how that yield is generated.
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Two months have passed since I was calling taxi firms in another country to plead with them to go wake someone up at their home at 4am to get online.
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Lotteries usually have clear and transparent rules and odds of success. Meme coins are almost all a mix of rug pull and pump and dump. I don’t care if people want to trade them or not, but personally I think the industry looks like a joke when it tries to legitimise them.
If you don’t buy a lottery ticket you can’t win. Everyone knows the probabilities of winning are low and -ev but the appeal to win and win big is something that has always captivated the human mind. Meme coins are here to stay the same way lotteries have existed for so long.
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Some thoughts about the stETH/ETH nightmare black swan scenario, since people are talking about it again. A depeg is definitely very unlikely in my opinion, but it’s not beyond the realms of possibility. Here’s my loose thoughts about the conditions in which it is at greatest.
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Active user numbers on Euler are increasing rapidly according to @tokenterminal. Weekly numbers already on par with Compound, almost 20% of the way to Morpho, and almost 5% of the way to Aave. Happy with that given Euler is only a few months old and still has much less TVL.
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@Toneball28 @PhilHay_ We conceded goals under bielsa because we played the most attacking brand of football the Premier league had ever seen with an injury-hit championship-level defence and GK. Board couldn't see it.
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Delighted to reveal that Euler Labs @eulerfinance is building on BASE testnet. Coinbase's millions of users are about to be introduced to a future which is open, on-chain and non-custodial. This is the beginning of the start for mass adoption. Euler will play its part. 💙.
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With so many derivative assets being priced at par to their underlying and used as collateral to facilitate leverage, it feels like credit default swaps are something DeFi should care more about.
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95%+ of governments are not primed to tell people what they can spend their money on or not without creating a corrupt, unequal society. Best you can do is heavily constrain their authoritarian desires through democracy, and nudge people into financial literacy and education.
95%+ of humans are not primed to invest in financial assets or make financial risk decisions. Best you can do is heavily constrain their possible investment portfolio through regulation, and nudge them heavily into low fee index funds + buy and hold strategy through tax breaks.
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@paulscheer My wife and I watched a film once with maybe 20% of the dialogue in a foreign language with no subtitles. We thought it was a bit 'arty' but watchable. As the credits rolled we realised the TV aspect ratio had been altered. Subtitles were there all along hiding at the bottom.
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Welcoming Gauntlet to the Euler ecosystem as a new risk manager is a killer way to kick off 2025. I am extremely proud of Euler reaching $250M in TVL in just four months, and as we scale further, Gauntlet’s proven track record in managing billions in assets makes them the.
1/ We're hyped to announce we will manage risk for @eulerfinance to aide in their mission to lend, borrow, and build without limits:
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Many people are understandably concerned about what will happen next. While there is still much to figure out, everyone associated with Euler is working tirelessly to achieve the best possible outcomes as quickly as possible.
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Back working on mechanism design (the best part of my job that I never had time to do any more until recently). Shill me the latest and best lending, DEX, stable coin, token design, governance system innovations and white papers.
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Public goods from @eulerfinance developed and audited for the benefit of the wider Ethereum community in recent months:. FeeFlow.RewardStreams .Ethereum Vault Connector (EVC).Euler Price Oracle.
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If I understand correctly, @uniswap appears to have independently innovated a mechanism for $UNI that is very similar to the FeeFlow mechanism we described in the Euler v2 relaunch announcement. FeeFlow gives the right for e.g. UNI token holders to acquire fees from a protocol,.
🔈 New Governance Proposal Posted 🔈. UF Governance Lead @eek637 just posted a proposal to upgrade Uniswap Protocol's governance system. Specifically, this upgrade would reward UNI holders who have staked and delegated their tokens.
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Going to be iterating on the UI relentlessly over the next few weeks. Would love feedback. You never know how a website is going to be used until you have real users.
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Never mind the ETF, the EVC is here. The Ethereum Vault Connector is a new immutable primitive that will power @erc4626 vaults on Euler v2 and beyond. It's a pure public good funded by @eulerfinance. Immutable. No governance. No fees. Open to anyone. Come and build with us!.
1/ The first building block of Euler v2 is here. Introducing the Ethereum Vault Connector - a powerful primitive that enables anyone and everyone to build products and credit-based protocols. Let's dive into the details:
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