Electronic USDPrice

(EUSD)

Electronic USD (eUSD) is a decentralized stablecoin designed to maintain a 1:1 peg with the U.S. Dollar. Unlike many centralized stablecoins, eUSD functions as a "meta-stablecoin." This means it is backed by a diversified basket of other yield-bearing stablecoins and its governance is managed by a decentralized community. This structure aims to provide robust stability and community oversight, making it distinct from centrally issued alternatives.

The eUSD project is a collaborative effort between two key entities. The Reserve Protocol provides the foundational technology for minting and managing the eUSD stablecoin. Complementing this, Sentz (formerly MobileCoin) has developed the global payment infrastructure and the private blockchain network where eUSD is primarily utilized for transactions. This partnership combines robust stablecoin mechanics with a privacy-focused payment system.

eUSD maintains its 1:1 peg by being fully backed by a diversified basket of other stablecoins that also generate yield, sourced from established decentralized finance protocols. A critical safety mechanism is the use of Reserve Rights (RSR) tokens. If any of the underlying collateral assets were to experience a significant loss in value, RSR tokens are automatically auctioned off. This process recapitalizes the collateral basket, ensuring the eUSD peg remains stable even during adverse market events.

Yes, a core feature of eUSD, particularly on the Sentz network, is its privacy. It leverages zero-knowledge encryption to ensure that your transaction history and account balance remain confidential. While this provides a high degree of privacy, it's designed to operate within legal frameworks. For on-ramping and off-ramping into traditional finance, a Know Your Customer (KYC) and Anti-Money Laundering (AML)-compliant bridge is utilized. This balances user privacy with regulatory requirements.

Users can earn yield through features like "Sentz Earn," which leverages the underlying mechanics of eUSD. The attractive yield, often quoted around 8% APY, is generated from the interest accumulated by the stablecoins held within eUSD's collateral basket. These underlying assets are strategically deployed in established decentralized finance protocols to generate returns. This method ensures that the yield is derived from actual market activity and the productivity of the collateral itself.

The Reserve Rights (RSR) token plays a crucial and distinct role from eUSD. While eUSD is the stablecoin used for transactions and payments, RSR functions as both a governance token and an essential insurance mechanism for the eUSD ecosystem. Holders can stake RSR to participate in the protocol's governance, influencing its future development. More importantly, staked RSR acts as a last-resort collateral. If eUSD's underlying asset basket faces a shortfall, RSR is auctioned off to recapitalize the reserves, thereby protecting the eUSD peg and stability. Stakers also earn rewards for providing this insurance.