The decentralized finance ecosystem is primarily known for massive returns on investments, despite having to deal with unstable tokens. EURxb.Finance is an entirely different creature, with its Euro-based stablecoin approach offering a 7% yield. Maximizing DeFi access and returns with regulated securities is a groundbreaking development.
Changing The DeFi Narrative
Investing in decentralized finance in search of financial profit remains a risky endeavor in 2021. Many platforms maintain a native token that is subject to price fluctuations. As such, anyone providing liquidity or farming yield by other means risks losing value every second. This is far from ideal for institutional investors, as they prefer a more “stable” approach.
Instead of creating more of the same, the EURxb.finance team opts for a different strategy. Its ecosystem revolves around the EURxb stablecoin, which has its value pegged to the Euro. More importantly, one can only obtain this stablecoin by using regulated securities courtesy of Miris AS. The provider’s Green Bonds provide a fixed yearly return of 7%, making them attractive to institutional investors.
The collaboration between EURxb.finance and Miris AS provides a way to create an ERC20 token as a native asset, dubbed EURxb. It is a Euro-backed stablecoin that benefits from the same 7% interest per annum. It is unheard of to have a native stablecoin passively accrue interest in real-time on behalf of its owner – stable tokens that “earn” for users are currently only available to savvy DeFi investors that understand those trading risks – and do not generate predictable returns.
Interest Without Price Volatility
As the EURxb stablecoin adheres to the ERC20 Ethereum blockchain standard, it can be integrated into new and existing DeFi solutions with ease. It may provide a crucial gateway to decentralized finance for institutional investors who want to earn passive interest while exploring the many different decentralized finance options.
As the liquidity provider incentives have just concluded across Uniswap and Balancer, the first venture into DeFi becomes accessible to EURxb holders. Traders earned rewards by providing liquidity to [one of] the four pools across Balancer and Uniswap, and staked those on the EURxb.finance platform to earn the native XBE governance token, making the platform completely decentralised and community owned.
All of this functionality can be explored while passively accruing interest on one’s EURxb holdings. The 7% annual yield will continue to accrue as long as the token remains in your control. Combining this 7% yield with liquidity provision fees from Uniswap and/or Balancer, as well as the future revenue from XBE tokens, can provide a generous return on investment.
Uniswap and Balancer Liquidity Provision
Interested users provided EURxb/USDT and EURxb/BUSD liquidity on Uniswap and EURxb/USDC or EURxb/DAI liquidity on the Balancer platform. All pools were subject to distribution of 3,000 XBE tokens – which carry no value yet entail hodlers to governance voting power – and was distributed based on one’s share of the pool(s) accordingly. The community is expected to establish further trading markets for the XBE token..
With $402 million in total value locked in the EURxb.finance protocol to date, there is a growing demand for services like these. Tapping into decentralized finance with a stablecoin that accrues interest passively creates a different level of peace of mind for investors.
Additionally, they are safe from price volatility, as the stablecoin and its liquidity pairs all maintain pegged values.
As holders of the ERC20 token will earn their 7% annual yield and trading fees from Uniswap and Balancer – as well as XBE tokens during the initial liquidity provision event – there are many reasons to check out what this project has to offer. EURxb.finance provides a take on DeFi that appeals to institutional users by removing price fluctuation risk and maintaining an appealing return on investment rate.