Stablecoins are the lifeblood of the cryptocurrency industry, yet they don’t always appeal to institutional investors. EURxb is changing the narrative through its new Euro-backed stablecoin. With a fixed 7% APR, it is one of the most compelling options to explore today.
It’s More Than Pegging Value
For most people, stablecoins present an exciting way to explore the many cryptocurrency markets available today. Rather than dealing with fiat currency gateways all the time, entering the stablecoin segment once is a more promising approach. However, one also has to realize that stablecoins have no real appeal or potential if they are not actively used for trading crypto-assets. On their own, these currencies cannot move up or down due to their peg to a real-world currency.
Moreover, one has to wonder whether the current collection of stablecoins appeals to institutional users. Although it may prove useful to own a currency backed by real-world assets, the lack of “extra features” is problematic. Institutional investors often expect a return on their investment when entering a new market. With a fiat-pegged crypto-asset, that is never guaranteed..
Even trading these stable currencies against cryptocurrencies isn’t a recipe for success. Bitcoin and altcoins are notoriously volatile and may not offer any return on investment whatsoever. To cater to institutional-grade clients, stablecoins need to provide a little extra “pizzazz”. EURxb.finance is the first entity to crack the code and offer more bang for the buck.
Green Bonds As Collateral
Under normal circumstances, issuers provide stablecoins in exchange for fiat currencies. Taking USD Coin by Circle as an example, they can only issue USDC based on their USD reserves in the bank. EURxb.finance doesn’t rely on fiat currency reserves in the traditional sense, as their venture leverages Miris AS’ Green Bonds.
Those unfamiliar with this instrument help fuel the sustainable development of projects under the Miris Green Finance Framework. As a secure and profitable investment, holders of the Green bond will earn a flat 7% APR. A significant return on investment that does not require any specific action on behalf of the investor.
As Miris AS and EURxb.finance work together, it is now possible to use the Green bond as a tool to mint the EURxb stablecoin. Pegged to the Euro’s value, it will still provide the passive 7% investment return of the original vehicle. These returns will act as transparent reserves. Speaking of transparency, EURxb.finance has no founder or investor allocations, and the governance aspect is 100% controlled by the community.
Holding EURxb in one’s wallet will accrue interest in real-time, creating an extra incentive for investors to explore stablecoins and the many use cases – including decentralized finance – that lie beyond.
Governance Token Distribution is Live
Traders who explore the EURxb ecosystem will also be eligible to earn the XBE governance token through the various liquidity pools. Both Uniswap and Balancer have two pools each where traders can provide EURxb liquidity through USDT/USDC/DAI/BUSD pairs. Doing so will reward liquidity providers with the XBE governance token, allowing holders to govern the EURxb.finance protocol.
Although the XBE token does not provide any trading value, holders will be granted access to fees generated by the upcoming EURxb Vault solution. As XBE cannot be traded or exchanged, the liquidity provision event is the only way to acquire this token.
Closing Thoughts
Changing the stablecoin industry to catering to non-cryptocurrency traders is a bold move by EURxb.finance. It is also a move that shows blockchain technology’s power and how it can bring extra use cases to regulated securities. Keeping the normal benefits while unlocking new potential use cases will bring cryptocurrency, DeFi, and this new stablecoin into the mainstream.
