Interpretation of the euro stablecoin: the scale is less than 1% of the dollar stablecoin, and the liquidity in Curve is better – Programmer Sought

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Interpretation of the euro stablecoin: the scale is less than 1% of the dollar stablecoin, and the liquidity in Curve is better – Programmer Sought
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The euro is the second largest currency in the world, but on the blockchain, the size of the euro stablecoin is less than 1% of the dollar stablecoin. With the recent deployment of Circle and others, this situation may improve. In this article, PANews will take stock of the issuance mechanism, scale and application of several large-scale euro stablecoins.

Tether: Euro Tether (EURT)

Although Tether’s compliance and transparency have been questioned, it remains the biggest winner in the stablecoin space, where USDT still holds the No. 1 market cap at $65.9 billion. All Tether tokens issued by Tether are 100% backed by assets in reserves, and the value of the reserves is updated at least once a day, Tether said. Similar to USDT, EURT is a stable currency issued centrally by Tether, which is also supported by real asset reserves.

According to Tether’s official website, as of July 21, the circulation of EURT was 108 million, which was mainly issued on Ethereum. The circulation on Omni was negligible (about 1450 EURT), and other chains have not yet issued.

From the query on the blockchain, it can be seen that the Bitfinex exchange holds the most issued EURT, followed by the two liquidity pools of Curve, the Polygon cross-chain bridge and the FTX exchange. EURT has a low percentage of on-chain usage, with the majority being held by external accounts.

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Circle: Euro Coin (EUROC)

Circle is Tether’s biggest competitor in the stablecoin field, and its euro stablecoin EUROC has also recently been launched. On June 16, Circle announced that it would issue a stablecoin pegged to the euro; on June 30, EUROC was issued on the Ethereum blockchain. Circle claims that EUROC’s issuance is 100% backed by euros in euro-denominated bank accounts.

Since EUROC has been online for less than a month and the issuance volume is small, the official website of Circle has not announced the issuance data of EUROC. The blockchain browser shows that the supply of EUROC is only about 320,000, most of which are held by some unidentified external accounts. Only the decentralized exchange DFX has some liquidity on the chain.

STASIS: STASIS EURO (EURS)

EURS is a euro stablecoin issued centrally by STASIS (a tokenization platform launched by Exante, an international investment service company established in 2011, providing professional securities brokerage services). It was launched in July 2018 and is an early of a euro stablecoin. Its issuance mechanism is similar to Tether. According to the official website, the issuance of EURS is backed 1:1 by the collateral in the reserve account and audited by the top 5 accounting firms in the world. EURS reports are updated daily, validated quarterly and audited annually.

It can be seen from the official website that the circulation of EURS is 78.61 million, mainly on the Ethereum mainnet, and there are also a small amount on Arbitrum, Matic, xDAI, Algorand, and Ripple.

The blockchain browser shows that the total supply of EURS is 124 million, some of which may not be issued. For the rest, Curve accounts for nearly 40%, and there is also some liquidity on Uniswap V3.

Angle: agEUR (AGEUR)

agEUR is a decentralized stablecoin with a relatively novel issuance mechanism. Users can mint agEUR 1:1 with supported tokens; hedging agents help the protocol to hedge the exchange rate fluctuation risk after users mint coins by trading perpetual contracts, and at the same time get ANGLE token incentives; standard liquidity providers act as the next Insurance, and get some transaction fees. For example, a user mints 9800 agEUR with 10000 USDC, and the protocol incentivizes the hedging agent to go long USDC/EUR worth 10000 USD, so that the protocol is not affected by exchange rate fluctuations.

On this basis, Angle added a lending model in June this year, which can mint agEUR by over-collateralized WBTC and other encrypted assets, similar to borrowing DAI from Maker. The circulation of agEUR is about 42.83 million.

It can be seen from the blockchain browser that the liquidity of agEUR is relatively good, and the sum of the liquidity on Curve and Uniswap V3 exceeds 60% of the total amount of agEUR.

Iron Bank Fixed Forex: Iron Bank EURO (ibEUR)

Fixed Forex is a foreign exchange project launched by Andre Cronje last year, including foreign exchange tokens such as EUR, ZAR, JPY, CNY, AUD, AED, etc., and the names begin with “ib”.

It can be seen from the query on the blockchain browser that 120 million ibEURs were created and deposited into Iron Bank when they were launched. Users can borrow and deposit collateral from Iron Bank or yearn.fi/lend if they want. However, most of the tokens are not used. If this part of the unused tokens is excluded, the circulation of ibEUR is about 10.23 million.

After excluding the unborrowed portion, more than half of the ibEUR is in the Curve ibEUR/sEUR trading pair, and another part is in the Curve ibEUR/agEUR, and these two trading pairs account for more than 80% of the circulating ibEUR.

Synthetix: sEUR (SEUR)

sEUR is a synthetic asset in Synthetix. By over-collateralizing SNX tokens, sUSD can be minted, and then sUSD can be exchanged for synthetic assets of various cryptocurrencies, foreign exchange, and indices. All SNX stakers are responsible for the debt pool of synthetic assets based on their debt ratio.

The Synthetix official website shows the global debt of various synthetic assets on the Ethereum mainnet and Optimism. The sEUR is about 7.96 million US dollars. At a price of 1.02 US dollars, the total issued sEUR is about 7.8 million.

From the Ethereum blockchain browser, it can be seen that the sEUR issued on the Ethereum mainnet is about 7.71 million, and the liquidity in the sEUR/EURS pool and ibEUR/EURS pool on Curve accounts for 62.6% of the total sEUR on Ethereum.

summary

At present, the overall size of the euro stablecoin market is small, but the price is also stable around 1 euro. Excluding the unused part of ibEUR, Tether’s EURT ranks first with a circulation of 108 million, and Circle’s EUROC is just in its infancy.

Decentralized stablecoins have more applications on the chain, mainly in Curve, there is also some liquidity in Uniswap V3, agEUR and ibEUR can be used for lending in EULER and Iron Bank respectively. EURT is widely used in exchanges, and EURS is also supported by a few exchanges.

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