Much has been said about the potential of DeFi and how it could bring transparency and other elements of decentralization to the traditional financial market. While most of the solutions designed to blur the lines between traditional finance and DeFi are still experimental, a handful has begun to create tangible success in this regard. At the heart of this conversation is EURxb.finance and its native tokens, EURxb and XBE.
EURxb.finance believes that it is critical to enable a conducive investment landscape for institutional investors looking to partake in the DeFi revolution. DeFi continues to create unique and profitable opportunities for investors. However, much like every immature financial paradigm, DeFi solutions come with their own sets of risks. In some instances, the risks even outweigh the projected earnings.
For institutional investors, the barriers of DeFi boils down to the lack of solutions that combine compliance, stability, and profitability for mainstream adoption. To this end, EURxb.finance has based the design of its offerings on the premise that it is possible to deliver a DeFi product that combines all the aforementioned features. In its quest to find a balance between decentralization and regulation, EURxb.finance has created a EUR stablecoin, EURxb, backed by tokenized ISIN registered bonds and XBE, the ecosystem’s governance token.
With this innovation, EURxb aims to evade the pitfalls of unregulated DeFi products while also providing the high-yields that open finance presents.
Why Are EURxb And XBE Formidable DeFi Products?
It is easy to see why EURxb.finance has opted to issue a stablecoin. The average investor will at one point or the other require the stability of non-volatile digital assets. This is very much a necessity if institutional investors are to become a mainstay in the DeFi market. And although there is a growing list of stablecoins, EURxb.finance finds compelling selling points for its offering to give it an edge over the alternatives.
Firstly, EURxb is a EUR stablecoin. The decision to opt for a EUR-pegged coin stems from the lack of formidable options. While the crypto community has a plethora of established US-backed stablecoins to choose from, there is hardly a EURO-pegged stablecoin on the list of the top 100 cryptocurrencies by market cap. This may be due to the shortage in demand for such an offering but it also shows the need for a more innovative approach to the design of EURO stablecoins.
This is why EURxb.finance has pegged the value of its stablecoin to tokenized and interest-bearing bonds. Not only has the project opted for a decentralized framework, but the underlying bonds also generate a 7% annual yield, which automatically applies to EURxb holders. In essence, every EURxb holder is eligible for a fixed 7% yearly interest when they hold the tokens in a wallet. The possibility of generating fixed earnings gives EURxb that added functionality that other stablecoins lack.
Note that this 7% interest does not include the potential earnings from DeFi use cases of EURxb. The project also exposes investors to various DeFi yield-generating strategies that promise at least an additional 7% annual interest.
Furthermore, EURxb has opted for an on-governance system that gives all XBE holders the voting right to steer the project. Already 12,000 XBE of the total 15,000 XBE supply has been distributed fairly to the EURxb community via the recently concluded liquidity incentive program. With this framework, EURxb.finance has ensured that the project remains grounded in the fundamentals of decentralization by allowing users to partake in the governance of the network.
On a broader scale, this solution provides more liquidity to the expanding crypto market. Having a regulated DeFi gateway in the form of EURxb offers institutional investors the level of confidence that will eventually spur more capital to flow into the market. Naturally, more liquidity means higher price ceilings for Ethereum and Bitcoin.
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