| EVC |
The Ethereum Vault Connector (EVC) is an open-source foundational layer of the Euler protocol. It serves as a connective layer between vaults. More information is available from the Euler Finance EVC GitHub. |
| EVK |
The Euler Vault Kit (EVK) is a framework designed to facilitate the creation of credit vaults - specialized ERC-4626 compliant vaults that incorporate borrowing functionalities. Unlike traditional ERC-4626 vaults that actively invest deposited funds to generate yield, credit vaults function as passive lending pools, allowing users to earn interest by lending out their deposited assets. More information is available from the Euler Finance EVK GitHub. |
| Collateral Vault |
Vault created by the borrower to store their collateral. The collateral vault is the only entity that is allowed to reserve credit from the credit vaults, and therefore receive booster borrowing power. |
| Credit Vault |
The location where credit LPs deposit their assets to earn extra yield, and where collateral vaults reserve assets from in order to boost their borrowing power. |
| Twyne LTV |
A borrower-specified value for each collateral vault. It determines the amount of assets that a collateral vault will reserve. |
| Reserve credit |
Credit is reserved when the borrower wants to increase the amount of assets in their collateral vault to increase the safety (or borrowing potential) of their collateral vault. Reserving transfers assets from the collateral vault to the credit vault. This reduces the utilization ratio of the credit vault. |
| Release credit |
The act of returning reserved credit. Releasing transfers assets from the collateral vault to the credit vault. This reduces the utilization ratio of the credit vault. |