Electronic Dollar
eUSD is a decentralized stablecoin that is fully backed by yield generating stablecoins deposited in Aave and Compound.
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- Asset Type: ERC-20
- Market Cap: $22.1M
- Fully Diluted Valluation: $22.1M
- FDV / MC: 1
- Ranking inside Exponential (among stables): #31
- Circulating Supply: 22,198,344
- Total Supply: 22,198,344
- Volume (24H): $1.1M
- ATH: $1.13 (04/13/2024)
- ATL: $0.87 (03/05/2024)
eUSD is a low-cap, fully collateralized asset. This asset depends on two centralized entities for custody services. This asset is exposed to the underlying risks of Reserve, Aave V2, and Compound, which are protocols all rated as Good.
eUSD is a stablecoin that trades within 50bps of its peg to USD, which makes it a less volatile store of value.
eUSD has an uncapped supply but has inflation control or burn mechanisms in place.
How is eUSD created?
eUSD is a stablecoin that is fully backed by yield-generating assets and minted through the Reserve protocol. Reserve is a platform that enables anyone to create and use assets (RTokens) that are backed by a community-defined basket of crypto assets. eUSD can be permissionlessly minted and redeemed for its underlying basket of assets. RSR stakers provide further overcollateralization protection for eUSD holders in case of defaults in exchange for all of the yield earned. Governance is conducted on-chain and managed by RSR stakers, which aligns incentives with eUSD holders.
What is eUSD used for?
hyUSD provides users with an alternative fiat currency that is pegged to 1 USD. Reserve has purchased a substantial amount of CRV tokens to incentivize liquidity for its rTokens. Users can earn yield on their eUSD by putting it to work across DeFi.
How is the price of eUSD kept stable?
eUSD is designed to trade at 1 USD as it is fully collateralized by its basket of collateral assets. All yield earned by the underlying collateral is directed towards RSR stakers for providing overcollateralization protection. eUSD maintains its peg through the issuance and redemption mechanisms that are used by arbitragers. For example, when eUSD is trading below $1, an arbitrager will buy eUSD at the discounted price and redeem it for the basket of collateral assets, thereby reducing the supply of eUSD in circulation. When eUSD is trading above $1, arbitragers would take advantage by minting eUSD with the underlying collateral and selling on the open market until the peg has been restored to 1 USD.