Euler Finance's Fee Flow Mechanism

By Euler
Mar 4, 2024, 5:02 PM
twitter

Euler Finance has implemented a fee flow mechanism that allows users to auction off multiple tokens at once, build their own baskets, and avoid undesirable assets.​ This mechanism, which includes a dutch auction, saves on transfer costs by not explicitly holding assets.​ It aims to match the falling auction price with the value of the generated fees, offering a unique and efficient solution.​

Sources

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,

Uniswap Foundation
Uniswap Foundation
@UniswapFND

馃攬 New Governance Proposal Posted 馃攬 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.

96
Reply
Read more about Euler

Euler Finance Achieves $1B Lending Milestone

Euler Finance Achieves $1B Lending Milestone

Euler Finance has reached a significant milestone, surpassing $1 billion in total borrows. The protocol demonstrates strong capital efficiency with utilization rates approaching 50%. Key metrics: - Total borrows: >$1B - Utilization rate: ~50% - Total deposits: $1B+ The platform combines flexibility with capital efficiency, setting it apart from competitors who typically excel in only one of these aspects. For detailed analytics, view the [Dune dashboard](https://dune.com/0xpibs/euler-finance) created by @0xpibs.

Euler Expands on Avalanche with weETH Integration

Euler has achieved a significant milestone as the first lending protocol to integrate Ether.fi's weETH on Avalanche (AVAX). The protocol continues to expand its presence on AVAX with multiple specialized markets: - K3 Capital's market offers bluechip assets with high LTVs - Re7Labs focuses on institutional-grade DeFi opportunities - MEV Capital provides AVAX-native optimized looping strategies Users can earn $AVAX rewards through various activities including supplying and borrowing stablecoins. A $500,000 incentive program for stables is currently active. [Explore Euler on Avalanche](https://app.euler.finance/?network=avalanche)

Inverse Finance Launches sDOLA Market on Euler Frontier

Euler Finance has launched a new isolated market featuring Inverse Finance's sDOLA, a yield-bearing stablecoin. The market offers: - Full loopability with unlimited caps - 94% max LTV ratio - $20,000 in incentives - Isolated risk architecture - Current 90-day average APY of 7.80% sDOLA generates yield organically through fixed-rate loans on Inverse's FiRM market. The asset is fully decentralized and operates without governance token boosters. [Explore the market](https://app.euler.finance/?asset=sDOLA&network=ethereum) Note: Euler Frontier operates as a permissionless template for isolated markets without active governance.

Euler's Fair Liquidation System Continues to Benefit Users

Euler's Fair Liquidation System Continues to Benefit Users

Euler's reverse Dutch auction liquidation system remains a standout feature in DeFi lending. The protocol automatically adjusts liquidation bonuses based on health scores, offering key advantages: - Prevents excessive penalties for borrowers - Ensures fair treatment during market volatility - Zero liquidation fees maintained This system has proven effective since 2022, protecting users during market turbulence while maintaining protocol stability.

EUL Launches New Cross-Chain Bridge Solution

EUL.Hermes has launched a new bridging solution built on LayerZero's OFT protocol, enabling seamless cross-chain transfers of EUL tokens. Key features: - Near-zero slippage on transfers - No size limitations on transfers - Compatible with multiple chains including Mainnet, Base, Sonic, and Arbitrum This upgrade builds on EUL's existing omnichain functionality through Stargate Finance, further expanding cross-chain accessibility.