Euler Finance Begins The Process Of Decentralization

Published on: 27.02.2022

As the Euler protocol begins the process of decentralization, they are happy to announce its governance forum where users are able to discuss ideas, comment on governance proposals and get involved in the building of the Euler protocol.

Even though users are not able to vote on proposals as the EUL token has not been distributed yet, this will be the blueprint for the discussion of important changes to the Euler protocol.

The improvements to the Euler Protocol will be mainly done through passing eIPs: Euler Improvement Proposals. These proposals include issues pertaining to:

Euler begin its governance process by unveiling two governance proposals:

  1. eIP 1: Promote WBTC to collateral tier
    — Proposal includes a batch of changes to the Wrapped Bitcoin (WBTC) asset on Euler. These include: promotion of WBTC to the collateral tier. Increase of WBTC collateral factor to 0.88. Increase of WBTC borrow factor to 0.91. Change in interest rate model.
  2. eIP 2: Amend Interest Rate models
    This is a proposal to amend the interest model on the following assets: USDC, DAI, WETH, USDT, UNI and LINK. Currently, all assets on Euler are following the default interest rate model, which was originally created for the riskier, default isolated assets. However, given the high quality nature of those assets, it is appropriate to bring the interest rates in line with the market as the current rates are too high.

Note that since the protocol hasn’t been decentralised through a token distribution yet, voting will be done via a multisig for now.

ABOUT Euler
Euler is a capital-efficient permissionless lending protocol that helps users to earn interest on their crypto assets or hedge against volatile markets without the need for a trusted third-party

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