Proposal: Add Support for STASIS EURO (EURS) stablecoin on Idle

🗂 Proposals 📑 Formal Proposals
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Proposal: Add Support for STASIS EURO (EURS) stablecoin on Idle

Hello Idle Community!

Summary:

The STASIS team would like to submit a proposal to onboard EURS.

Main Links:

  • Website — EURS/ STASIS (1)
  • Source Code (2)
  • STASIS provides three verification streams: daily statements, weekly verification and quarterly audits by BDO Malta. The data is available publicly (3)
  • Independent Auditor Reports (4)
  • Token contract (5)
  • Chainlink Oracle (6)
  • Main socials: Telegram/Twitter.

STASIS EURS Background

EURS is the largest euro-backed digital asset, combining the benefits of the world’s second most traded currency with the transparency, immutability, and efficiency of the distributed ledger technology. Created by stablecoin crypto-enabler platform STASIS, EURS mirrors the euro’s value on the blockchain and is supported by assurance mechanisms provided via an ecosystem of liquidity providers, custodians, exchanges, payment platforms, and others. Each token is backed 1:1 by euros held in the company’s reserve accounts.

STASIS is a platform focused on transparency with a solid track record and vast expertise in technological, financial, and legal fields (7). Since all EURS are backed with fiat euro, there is no risk for investors and everyday users, who can always exchange their digital assets thanks to the Sellback Service (8).

EURS stablecoin combines experience, trust, technology, and financial infrastructure to enable business growth, narrowing the gap between the European financial and the digital asset markets. This in-house solution utilizes multi-blockchain interoperability to shortcut financial inefficiencies, often present in old-school financial systems. The project has popular global social media accounts and multiple local communities in different countries and a diverse investor base that includes institutions.

Since USD-backed stable coins are heavily dominating the market, Europeans/Asians are often forced into undesired dollar exposure with little on-chain hedging options. EURS stablecoin seeks to challenge the U.S. Dollar’s dominance in global financial markets. By 2021 it has become a popular tool for daily transactions, free of risks and volatility inherent in conventional cryptocurrencies. The potential of stablecoins use cases has been recognized in times of crisis, and the demand for EURS is growing steadily in the DeFi field.

Community and Communication

STASIS is active on Telegram, Twitter, Facebook and has established accounts in most popular crypto social media. The project team also operates and regularly updates a YouTube account (9). STASIS and EURS are often mentioned in global press media (10). Gregory Klumov, the founder and CEO of the STASIS EURS project, is the project’s main spokesperson (11), often sharing his view on crypto. The STASIS website includes a mailing address in lsle of Man, and a contact e-mail (12). There is also a phone number provided.

Benefits for Idle:

  • A new gateway for European and Asian users into the emerging DeFi world.

  • EURS will be the largest NON-dollar fiat stablecoin on the Idle protocol.

  • Increased adoption of Idle by the EURS userbase.

  • EURS tokens are backed 1-1 with EURO fiat, meaning there is no risk for users who operate with it since they can always exchange their assets to EURO thanks to the STASIS Sellback service which has been recently improved.

EURS smart contract has been upgraded by ABDK (13) — the company behind the audit of the V3 Uniswap which is the largest DeFi protocol nowadays. This gives the protocol and users a guarantee of confidence in the product.

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Team’s expertise video

STASIS Wallet Introduction

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References

  1. https://eurs.stasis.net/
  2. STASISNET (STASIS) · GitHub
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  1. Transparency and reserve verification
  2. CertiK Security Leaderboard - Stasis
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  1. Advising governments on cryptocurrency and digital asset regulation
  2. https://stasis.net/sellback/
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  1. Social media accounts

Medium, Twitter, Telegram, Facebook,Youtube, Bitcointalk.

  1. STASIS/ EURS in PRESS
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  1. https://www.linkedin.com/in/gregoryklumov/

  2. STSS Limited (lsle of Man) Reg number. 015541V, 2nd Floor, Quay House, South Quay, Douglas, IM1 5AR, lsle of Man; +1 442 888 3881.

  3. https://abdk.consulting/

Regards,

STASIS project team

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Thanks!

I’ll just state the obvious - EURS first needs to become a lending asset on Aave, Compound, dYdX or BzX for Idle onboarding to make sense. I assume those integrations are in progress?

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EURS community supports this cool proposal! Looking forward for this transparent stablecoin to get listed on more protocols and receive the global recognition it deserves!

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10

Let’s diversify stable assets backed by FIAT

Definitely, a EURO-backed Stablecoin is a need across DeFi ecosystem, currently dominated by USD, meaning undesired exposure to users who don’t feel represented by that kind of Stablecoins, since not everyone counts wealth on it.

STASIS is a trusted and fair project, which is one of the main reasons why this protocol needs EURS to be implemented. Thay are working hard on EURS development, always bringing new features and partnerships which add value to the project. As a result of this, liquidity is strongly growing lately.

This is a great opportunity, and also a great step to open emering DeFi protocols to european investors and users who don’t feel represented by Dollar-backed stablecoins. Also, for the ones who actually do but are getting poorer using USD and need a stronger Stablecoin as backup.

This is a great incorporation to Idle, I wish the approval and success of this proposal.

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Hey, thanks @STASISTeam for publishing this detailed proposal!

Idle provides only lending returns to tokenized USD. Although the dollar is an international currency, I agree that the European and Asian customer base would prefer to deal with their respective national/interregional currency.

Euro/Yuan management would simplify accountability and reduce volatility compared to their internal market.

On the Idle side, the implementation of Euro assets would expand the potential target users by many billion $.

Talking specifically about your asset, I see that the circulating supply is equal to 67M EURS.

50M tokens are deposited into Curve Finance, and 5M in Uniswap pools.

Cream provides lending returns on EURs via IronBank, but due to the low liquidity ($ 2.8k) I would exclude this protocol for future considerations.

Yearn developed a vault based on the Curve pool. Due to the conservative approach of Idle, which works with single-protocol integrations, and the current permissionless relationship with Yearn - where Idle is a yield provider of Yearn products - I don’t think that the way would be feasible.

The remaining options are Curve and Uniswap.

Integrating the Curve pool, we would block the opportunity to have Idle strategies integrated into Curve. If this is not an issue and we proceed, the pool would generate 0.24% from trading fees plus 39% - 97% from CRV tokens.

The management of the CRV tokens is not implemented in Idle, and this would require some time to develop the integration.

On the Uniswap side, the annualized returns based on 24h volume on USDC-EURS pool would amount to 10% APR.

Uniswap is not a supported protocol, so this way would require both protocol and asset configurations.

@STASISTeam, with this integration, would it be possible to have Idle strategies listed in your Statis wallet? And are there other business/economic/marketing agreements that could help Idle governance in moving forward with this implementation?

Now that we have an overview of this proposal, I drop here some questions for community discussion:

  • Are there other lending protocols supporting EURS?
  • Is the market size big enough to cover potential returns?

Looking forward to seeing community feedback!

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This will most likely pass: https://vote.rari.capital/#/rari/proposal/QmNSdAEikbD9cz9wued9xK4ZQMcoCJfP8o4eSJVpvfFTV2

This will probably not result in anything immediately: Proposal: Add Support for STASIS EURO (EURS) - #18 by Tolino - New Asset - Aave

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Dear Davide,

Thanks for the detailed feedback!

Your assessment is correct: EURS circulating supply has increased drastically during the last month.

We research the DeFi space and see what protocols may benefit the most from EURS implementation. At large, the importance of our stablecoin in decentralize finance ecosystems grows. We’ve also started the listing process on AAVE recently.

Currently, we do not have a plan to list any DeFi strategies (Idle or other protocols related) inside our STASIS Wallet app. It would overload the user interface and we have other tech advancements to come up with during the next few months. Hint: we are planning to implement alternative blockchain support.

What we do have in mind is to promote this in our social media: through Twitter/Telegram/Facebook/LN, e-mail campaign and Medium blog of course. We have published a step-by-step guide to help users capitalize on EURS earlier this year, and we’ll surely come up with a new one once the moment is suitable.

Our team can also try to pitch new partnership in global media to boost awareness.

Please feel free to express your ideas. Looking forward to community feedback.

Hope this helps,

Alex, STASIS Team.

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Hello David! How are you?

We have answered these questions a while ago on the relevant topic:

https://gov.idle.finance/t/proposal-add-support-for-stasis-euro-eurs-stablecoin-on-idle/456/9

Please guide us on the further steps.

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The integration of a protocol/asset is a long process, that consists of many steps and analysis.
The Governance has just approved a framework to evaluate new integrations and assess proper due diligence, with a set of minimum requirements.

When do you expect that the Fuze integration will be in production? This might be the first step, as Idle needs an underlying yield source.

Third-party due diligence processes should be taken into account too: according to MakerDAO’s Risk Core Unit Team, the answers provided there generate a sense of lack of confidence in EURS reserves.

A quote of the message is reported below:

The answer I’ve heard is fairly opaque - Stasis invests a portion of funds in high yield/high risk investments to shield EURS from negative rates, but there’s no transparency into the quality and composition of those investments. I don’t see how MakerDAO can earn excess risk adjusted returns on an EURS vault in these circumstances, which helps explain the low prioritization.

I would vouch for a EUR solution that addresses the huge market potential that might be unlocked in the next years, but maybe more benchmark from other protocols and solid lending protocols that support the asset would help the community to interact more on this topic and move it to the next phase.

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