Euler Finance, a decentralized finance platform on the Ethereum blockchain, has officially launched on Sonic, formerly known as Fantom. This move was announced by Sonic Labs on February 17, with the aim of boosting DeFi growth within the Sonic ecosystem. The integration of Euler Labs is set to bring advanced lending capabilities to the Sonic blockchain network.
The timing of this integration is significant, coming shortly after the launch of DeFi protocol Frax Finance on Sonic. These developments have had a positive impact on Sonic’s price, which has surged to highs of $0.60 with over 38% gains in the past seven days.
With Euler now live on Sonic, users can access features such as looping strategies, near-zero gas fees, and high-speed execution. The platform allows users to lend, borrow, and loop major assets including liquid-staked token stS, wrapped Sonic wS, and USDC.e, a bridged USDC token.
Euler Finance has seen significant growth in recent months, bouncing back from a $197 million exploit with the launch of Euler v2. Despite competition from the likes of Aave, Morpho, Compound, and Avalon Finance, Euler’s Total Value Locked (TVL) has risen from $16 million on November 5, 2025, to over $356 million.
One of the key drivers of this growth has been the introduction of vault lending capabilities with Euler v2 and the launch of rEUL, a 1:1 token that represents the locked version of EUL. Introduced in November 2024, rEUL enables reward distribution within the Euler ecosystem. Users have the opportunity to earn from $100,000 in rEUL incentives, with market curators including MEV Capital and Re7.
Overall, the integration of Euler Finance on Sonic represents a significant milestone for both platforms, opening up new opportunities for users and contributing to the continued growth of the DeFi ecosystem.