The Standard EUROPrice

(EUROS)

The Standard EURO (EUROS) is a decentralized stablecoin engineered to maintain a 1:1 peg with the value of the Euro. It is built on the Ethereum blockchain and leverages the Arbitrum scaling solution to enhance efficiency and reduce transaction costs. Its core purpose is to offer a stable digital representation of the Euro in the crypto ecosystem.

The stability of The Standard EURO (EUROS) is primarily maintained through an over-collateralization mechanism. Users who wish to mint EUROS must lock up other crypto assets as collateral, with the value of this collateral needing to exceed 110% of the EUROS they generate. This surplus collateral acts as a buffer, absorbing potential market fluctuations and aiming to ensure the stablecoin remains reliably pegged to the Euro's value, even during periods of volatility.

The Standard EURO (EUROS) operates as a token on Arbitrum, which serves as a Layer 2 scaling solution atop the Ethereum blockchain. This architecture enables faster and more cost-effective transactions compared to the Ethereum mainnet. Users interact with the protocol by locking various collateral assets into smart contracts. This action allows them to mint EUROS, effectively creating a 0% interest debt with no predetermined repayment deadlines, providing flexibility for users seeking decentralized borrowing.

The Standard EURO (EUROS) is designed to serve multiple practical applications within the Web3 ecosystem. Its main use cases include providing accessible financial solutions for users globally, enabling decentralized borrowing against various crypto assets without the need for traditional intermediaries. This allows individuals to leverage their digital holdings while maintaining exposure to the stable value of the Euro, facilitating greater financial flexibility and participation in decentralized finance (DeFi) activities.

Stability for The Standard EURO (EUROS) is achieved through its over-collateralization model, promoting transparency and user autonomy by decentralizing its issuance. However, a significant risk factor is its architecture as a proxy contract. This means the contract owner possesses the technical ability to implement changes to the token's behavior, such as disabling selling, adjusting fees, initiating unauthorized minting, or transferring tokens. This potential for centralized control over key functionalities advises users to exercise caution and thoroughly understand these inherent design considerations.

The Standard EURO (EUROS) distinguishes itself through its decentralized, over-collateralized minting mechanism, contrasting with other euro-pegged digital assets that are typically issued by private entities and backed by fiat reserves held in traditional bank accounts. Unlike a potential central bank digital currency, which would be issued and guaranteed by a central monetary authority as legal tender, EUROS is created via a protocol on a blockchain, emphasizing user autonomy and eliminating reliance on single centralized institutions for its issuance and backing.