Renewal of Contract for Services with Euler Labs

Euler DAO Governance
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Renewal of Contract for Services with Euler Labs

Author(s): Euler Labs
Submission Date: 25 March 2025

Abstract

The proposal requests the renewal of the previous contract for services for Euler Labs with an effective start date of 1 April 2025. Euler Labs seeks up to $7.7m USDC for the 12 months ending on 31 March 2026. The new contract cost is significantly lower than the previous contract, and is inclusive of security and risk-management services provided by TRM, Hypernative, Hexagate, Guardrail, Gauntlet, and Objective Labs (any others). In this regard, we think Euler Labs continues to offer astonishing value for money as a service provider to the Euler DAO.

Motivation

Euler Labs would like to renew its contract for services with the Euler Foundation to cover development of the Euler suite of products, including Euler v2, EulerSwap, and ancillary components. The projected cost of the new contract ($7.7m) is significantly lower than last year’s contract ($11.8m). This follows from significant cost savings on last year’s contract and lower projected costs going forward.

Savings

Although development continued apace, Euler Labs was able to save $2.2m over the past 12 months on its previous contract. The security spend under-ran its budget by $2.0m (49%), due to a lack of substantial audit findings nor any significant time and expense in remediation therein. Other operations under ran by $0.2m (2.5%). In aggregate, the estimated March-end total will accrue to approximately $9.6m, inclusive of all costs, which is 18.6% under the budget approved by the DAO. The aggregate savings of $2.2m is a significant figure in light of what has been delivered over the past year.

Specification

If this proposal passes, the Euler Foundation will renew its contract for services with Euler Labs. The effective start date of the new contract will be 1 April 2025.

New Contract Details

  • Dated from 1 April 2025 (2Q2025).
  • The term of the new contract will be one (1) year.
  • The contract will be reviewed and considered by the DAO annually hereafter.
  • The total value of the contract is estimated to be up to $7.7m USDC, but may be marginally less.
    • The proposal is based on a carefully prepared forecast. Euler Labs Limited maintains its books and records in GBP, in accordance with UK GAAP and the Companies Act.
    • $1.5m of which is directly attributable to security and risk-management-related services.
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Euler Labs provide asymmetric value. While they are expensive in a real sense, this amount is competitive (or even slightly below) other tier one developers. Very few other entities could be trusted with even the prospect of bringing Euler back to life, and the speed and power with which they have brought the protocol’s roaring return is something that truly no other team could have produced. We fully support this renewal proposal. We appreciate the level of detail on the proposal and are grateful for Labs’ hard work in delivering such a stunning recovery so far under budget.

One addition to the scope that we would value is increased efforts towards further diversifying contributor workload. We are heartened to see new contributors such as Objective Labs find available the resources needed to deliver value but these efforts should be accelerated to start to reduce “key man risk” inherent to Euler Labs’ unrivalled contributions.

Euler is back, and we have only one contributor to thank for it. Congratulations and gratitude on behalf of all stakeholders are in order! We support this proposal.

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We support the proposal. Being preview to multiple teams and projects, Euler Labs are delivering outsized value while being highly cost effective.

Lastly, kudos to the team for the transparent cost projection.

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We would like to express our full support for the renewal of the services contract with Euler Labs.

Our experience working with the Euler Labs team has been excellent. They’ve consistently demonstrated professionalism, technical strength, and a deep commitment to responsible protocol stewardship. Their responsiveness and willingness to engage constructively have made collaboration smooth and productive.

Looking forward to continued growth and innovation under their stewardship.

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Hi.
For any such initiative, I would like to understand the goal for this year.
I see that Euler v2, EulerSwap is planned to be developed, but the development itself is not the goal.
I would like to know some criteria and KPIs, do you have them?
Also, is there any report for the last year of work?