Collateralization under stress
Euler V2's assessment for RD-F-068 — scored yellow on the v1.7.0 rubric. The evidence below is the curator's reasoning for this score.
Evidence summary #
EVK uses per-vault health factor model (risk-adjusted collateral value > liability). No single collateralization ratio applies. Euler Prime correlated-asset vaults: 85-93% LLTV. Uncorrelated vaults: 65-80% LLTV. Curator stress simulation not performed. The 88% TVL drawdown and prevalent ETH/LST collateral base raises the plausibility of collateralization pressure during stress scenarios, though no confirmed breach is documented. Yellow: no confirmed undercollateralization, but stress test not independently verified.
Sources #
- Docshttps://github.com/euler-xyz/euler-vault-kit/blob/master/docs/whitepaper.mdretrieved 2026-05-04
- https://laikalabs.ai/blogs/euler-finance-april-2025-defi-lending-reportretrieved 2026-05-04
Methodology #
Determine whether under curator-defined stress scenario (top-3 collateral assets drop 50%), protocol net collateralization falls below 110%.
See the full factor methodology and distribution across all protocols →