Euler Finance makes it possible for users to lend and borrow cryptocurrencies. What makes Euler Finance different from other DeFi lending protocols such as Aave or Compound is its use of risk-based asset tiers designed to protect the protocol from risks typically associated with decentralized permissionless lending, especially with respect to illiquid or volatile assets.

In short, Euler Finance is a decentralized, permissionless lending protocol custom-built to improve capital efficiency and reduce the risks associated with lending and borrowing volatile, long-tail crypto assets.