The stablecoins are cryptocurrencies designed to maintain a stable value by being backed by traditional assets, such as fiat currencies. While stablecoinDollar-backed currencies (such as USDC or USDT) dominate the market, stablecoinEuro-backed currencies (EURS, AEUR, EURC, EURt, EURI) are gaining popularity, especially among European users looking to avoid exchange rate fluctuations and transact in their local currency. In this article, we compare the main stablecoins backed by the euro, their specificities and how they work so that you can determine the The best stablecoin euro, or rather the one that suits you best.
Table of contents
EURS: The stablecoin STASIS euro
The EURS, created by STASIS, is one of the first stablecoins backed by the euro. STASIS is a Malta-based platform specializing in the tokenisation of traditional assets, which means that it allows real assets, such as the euro, to be transformed into cryptocurrencies. Each EURS is backed by one euro or an equivalent asset, held in regulated bank accounts.
However, the EURS presents a increased centralization. Unlike stablecoins more decentralized, the management of its reserves is entirely controlled by STASIS, which raises concerns about dependence on this single entity. This centralization represents a risk in the event of mismanagement or a crisis of confidence in the company.
Advantage:
- Regular audit and transparency in fund management.
- High adoption in exchanges and relatively high liquidity.
Disadvantages:
- Centralization: STASIS has complete control over reserves, which can pose a risk if mismanaged.
AEUR: The stablecoin Euro of the Aave ecosystem
The AEUR is issued by Aave, one of the main platforms of decentralized finance (DeFi). Aave is a protocol for ready andborrowing decentralized. The AEUR therefore allows users to borrow and lend euros tokenintegrated into the ecosystem of the DeFi, while maintaining stability against fluctuations in other cryptocurrencies.
What makes AEUR different from others? stablecoinis that it is deeply integrated into the ecosystem of the DeFi Aave. This allows for decentralized, transparent operations, without intermediaries, with interest rates adjusted according to supply and demand.
Advantage:
- Great flexibility for users of the DeFi.
- Decentralized management and transparency ensured by the community.
Disadvantages:
- Less popular than others stablecoins euros, adoption still limited.
EURC: The stablecoin Circle Euro
The EURC is issued by Circle, the company behind USDC, one of the stablecoins backed by the most widely used dollar in the world. EURC follows the same management principles as USDC, with very strict regulation and transparency standards. Circle guarantees that each EURC is backed by one euro, deposited in regulated banking institutions, with regular audits to ensure the security of the funds.
Advantage:
- Increased transparency and clear management of reserves.
- Circle's strong reputation, ensuring user trust.
Disadvantages:
- Adoption still relatively low, but growing.
EURt: The stablecoin Tether euro
EURt is the stablecoin euro issued by Tether, the same company behind USDT. Although very popular, Tether has been repeatedly criticized for its lack of transparency concerning the reserves which guarantee its stablecoins. In 2021, Tether was sued and investigations revealed that its reserves were not only in euros, but included riskier assets such as bonds, commercial loans and even cryptocurrencies. This opacity raises doubts about Tether's financial strength, despite its high liquidity in the markets.
Advantage:
- High liquidity and adoption in the ecosystem crypto.
Disadvantages:
- Lack of transparency on reserves and uncertainties related to audits.
- Potential risks due to the opacity of its management.
EURI: The stablecoin euro from Angle Labs
EURI, issued by Angle Labs, is a stablecoin euro particularly interesting for its high degree of decentralization and security. Unlike stablecoinLike EURS or EURt, EURI is designed to operate in a completely decentralized manner. It is integrated into several protocols DeFias an Uniswap, Corners, and Balancer, which guarantees high liquidity and flexibility for users.
EURI’s security relies on a decentralized collateralization method, where users can provide collateral to maintain parity with the euro. Angle Labs does not directly control the funds, which reduces the risk of centralization. This decentralized architecture allows EURI to resist censorship and potential manipulation.
Advantage:
- High degree of decentralization, no centralized control over reserves.
- Strong integration into protocols DeFi.
Disadvantages:
- Adoption still limited outside the ecosystem DeFi.
Differences between these stablecoins
All of these events offer an exceptional opportunity for young international arbitration practitioners to debate with eminent specialists in a friendly and open format and setting. stablecoinThey are mainly differentiated by their management (centralized or decentralized), their transparency and their liquidity.
Why choose a stablecoin EUR ?
For European users, use a stablecoin backed by the euro allows avoiding exchange rate fluctuations with the dollar. These stablecoins are useful in decentralized finance for operations like ready,borrowing, where the value transfers. THE transfer of value means the act of transferring funds or assets from one account to another, often quickly, securely and cheaply using blockchains.
Regulation and stability of stablecoins euro
With the arrival of the frame MiCA (Markets in Crypto-Assets) in Europe, the regulation of stablecoins is becoming more and more strict. MiCA imposes regular audits, increased transparency on reserves, and reporting requirements for issuers of stablecoins. This ensures greater security for users, while encouraging wider adoption.
Conclusion: Which is better? stablecoin EUR ?
The choice of the best stablecoin euro depends on your needs and risk tolerance. If you are looking for transparency and security, EURS et EURC are great options. If you prefer decentralization and greater integration into the DeFi, AEUR et EURI are to be considered. Finally, EURt offers great liquidity, but its opaque management remains a source of concern.
FAQ
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What is the difference between EURS and EURt?
- EURS is managed by STASIS with strong transparency, while Tether's EURt is criticized for its lack of clarity on reserves.
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How are the guarantees made? stablecoins backed by the euro?
- Each stablecoin is guaranteed by euros or equivalent assets, deposited in regulated bank accounts, with regular audits to ensure the validity of the reserves.
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What are the risks associated with stablecoins euros?
- Risks include lack of adoption, lack of transparency (as with EURt), and regulatory uncertainties.
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What stablecoin Euro is the most suitable for the DeFi ?
- EURI et AEUR are particularly suited to decentralized finance, being integrated into protocols DeFi majors like Uniswap and Curve.
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How to use stablecoins euro in decentralized finance?
- They can be used for the ready,borrowing, where the value transfers on platforms like Aave, Uniswap, or Corners.
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Yohan Uzzan
An engineer by training, I quickly became interested in the field of finance. Convinced that decentralized finance has a bright future ahead of it, I am participating in its democratization by developing Crypternon.
