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Euler
Modular credit vaults
The interactive canvas is currently centered on this protocol.
Vault Book
Plain-text guide to DeFi lending vaults
Vault Book is an interactive canvas for understanding DeFi lending and borrowing vaults. This page is the crawlable companion: a linear overview designed for search engines, AI systems, and readers who want a text-first version of the material.
The current release is Euler-first. Morpho and Aave are planned next using the same chapter map so readers can compare protocols along a shared structure.
Planned
Morpho
Optimized lending markets
This protocol is planned for the same shared chapter structure.
Planned
Aave
Pooled liquidity markets
This protocol is planned for the same shared chapter structure.
Machine-readable entry points
If you are indexing or retrieving content from Vault Book, these are the stable starting points.
- Homepage: https://www.thevaultbook.org
- Crawlable guide: https://www.thevaultbook.org/guide
- LLM entrypoint: https://www.thevaultbook.org/llms.txt
- Expanded plain text: https://www.thevaultbook.org/llms-full.txt
Chapter map
These sections mirror the structure of the interactive Vault Book and give indexers a stable, linkable summary for each chapter.
Overview
Introduction
Overview of how DeFi lending markets work, who this guide is for, and how Euler fits into the broader lending design space.
Chapter 1
How Lending Markets Are Built
Compares isolated, pooled, and modular market designs, and explains how market structure shapes capital efficiency and risk containment.
Chapter 2
How Risk Gets Managed
Explains the operational layer around vaults, including who sets policy, how governance works, and where human judgment still matters.
Chapter 3
What a Curator Can Change
Covers the key vault parameters such as LTVs, caps, fees, hooks, and interest rate models, plus how each lever changes system behavior.
Chapter 4
Where Prices Come From
Describes how lending protocols source prices, how adapters and fallback logic work, and why oracle design is central to solvency.
Chapter 5
How Liquidations Work
Walks through unhealthy positions, liquidator incentives, and the mechanisms that protect lenders when borrower collateral falls short.
Chapter 6
What Lenders Should Know
Focuses on utilization, withdrawal risk, collateral design, and the practical reasons lender yield is never free of trade-offs.
Chapter 7
What Borrowers Should Know
Explains borrower-side hazards such as health-factor drift, liquidation exposure, rate spikes, and collateral mobility constraints.
Chapter 8
How the Protocol Stays Safe
Summarizes audits, verification, pause controls, and hooks so readers can separate immutable guarantees from operational protections.
Chapter 9
The Depositor Experience
Shows how batching, approvals, and account abstractions shape the real user experience of depositing, borrowing, and managing positions.
Chapter 10
Building on Top
Covers the developer surface area around Euler, including SDKs, batching flows, integrations, and protocol-adjacent products like EulerSwap.