The DeFi sector aims to build formidable financial platforms that can not only compete with established alternatives but also replace them entirely. In the last year, the sector has come up with compelling paradigms. However, if mainstream DeFi is the goal, then the stakeholders must do more to attract users in their numbers. As exemplified by the recent drive for versatile DeFi products, this entails an innovative approach to open finance that combines familiar elements of traditional finance and on-chain governance.
There is a growing demand for products with unique architecture that unlocks DeFi to a broader market segment. At the heart of this trend is the likes of EURxb that have introduced DeFi offerings that are quite different from what we are used to. EURxb.finance is looking to democratize the DeFi landscape further by providing functioning and applicable gateways for institutional investors. The ecosystem aims to bring components of traditional finance to the decentralized economy to create advanced functionalities and an enabling environment.
The first thing that the EURxb.finance does is that it opts for a stable digital asset framework that agrees with the investment strategies of most institutional investors. Its core offering is EURxb, a euro-dominated stablecoin that comes with added investment benefits. While the concept of euro-backed stablecoin is not peculiar to EURxb.finance, it is its approach that makes it unique.
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The Value Proposition of Eurxb
Unlike a majority of stablecoin solutions available today, EURxb embodies a sophisticated architecture that finds a balance between the regulatory elements of the traditional market and the possibilities of DeFi. The token is backed by ISIN-registered bonds for a more assured peg to fiat. The team goes a step further to bring this offering to the Ethereum blockchain for more transparency. As such, it is possible to verify that EURxb is indeed backed by real-world securities.
Regardless, the decision to bring EURxb to a blockchain does not rob users of the investment benefits that bonds present to holders. Therefore, EURxb generates investment returns as if they were holding the underlying bonds directly. In this case, EURxb holders accrue a fixed 7% interest annually by storing the coin in their wallets. This is completely different from what we have come to expect from stablecoins.
In essence, EURxb is not only providing users stability amidst volatility but also generates stable earnings for them. Both possibilities are ideal for institutional investors that would rather gamble on certainties brought about by regulation and familiar investment options. Likewise, EURxb holders can earn up to 7% additional interest when they use their tokens to unlock more DeFi opportunities.
Note that EURxb.finance is a gateway to DeFi. in other words, users can get more exposure to other DeFi protocols with their holdings. This opportunity will especially interest institutional investors.
It is also worth mentioning that the success of EURxb will have a significant impact on the crypto market as a whole. The inflow of capital would indirectly raise the price ceilings of digital assets, most especially the ones that have proven to be the most attractive to institutional investors. The influx of liquidity from regulated DeFi solutions like EURxb.finance would propel the price of Bitcoin and Ethereum further.
Although EURxb.finance embodies elements of traditional finance, it has ensured that its offering remains grounded in DeFi. It builds on its blockchain architecture by implementing an on-chain governance system and becoming community-focused. EURxb,finance is issuing another token, called XBE, to democratize the ecosystem and establish a community-driven approach to governance. With this, it is empowering users to have the front seat and take up governing responsibilities. In tandem with the popular blockchain governance approach, XBE holders automatically possess voting rights.
Note that the protocol has issued 15,000 XBE tokens. With 12,000 XBE distributed through the just concluded liquidity incentive program, EURxb.finance’s goal to distribute its governance token fairly is taking shape.