eIP 64 Renewal of Contract for Services with Euler Labs

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.

Author: Euler Labs