Stablecoins stablecoin designed to maintain a stable value by being pegged to traditional assets, such as fiat currencies. While dollar-backed stablecoin USDC or USDT USDT dominate the market, stablecoin (EURS, AEUR, EURC, EURt, EURI) are gaining popularity, particularly among European users looking to avoid exchange rate fluctuations and transact in their local currency. In this article, we compare the main stablecoin , their specific features, and how they work so you can determine the best euro stablecoin , or rather, the one that best suits your needs.
Table of contents
EURS: STASIS's euro stablecoin
EURS, created by STASIS , is one of the first stablecoin . STASIS is a Malta-based platform specializing in the tokenization of traditional assets, meaning it allows the conversion of real assets, such as the euro, into cryptocurrencies. Each EURS is backed by one euro or equivalent asset held in regulated bank accounts.
However, EURS exhibits increased centralization . Unlike stablecoin , the management of its reserves is entirely controlled by STASIS, raising concerns about dependence on this single entity. This centralization poses a risk in the event of mismanagement or a crisis of confidence in the company.
Benefits :
- Regular auditing and transparency in fund management.
- Strong adoption in trading and relatively high liquidity.
Disadvantages:
- Centralization: STASIS has total control over the reserves, which can represent a risk in case of mismanagement.
AEUR: The euro stablecoin of the Aave ecosystem
AEUR is issued by Aave , a leading decentralized finance (DeFi) . Aave is a lending and borrowing protocol . AEUR therefore allows users to borrow and lend tokenized euros within the DeFi ecosystem , while maintaining stability against the fluctuations of other cryptocurrencies.
What differentiates AEUR from other stablecoinis its deep integration intoAave's DeFi ecosystem. This enables decentralized, transparent, intermediary-free operations with interest rates adjusted according to supply and demand.
Benefits :
- Great flexibility for DeFi users.
- Decentralized management and transparency ensured by the community.
Disadvantages:
- Less popular than other euro-based stablecoin, adoption still limited.
EURC: Circle's euro stablecoin
EURC is issued by Circle , the company behind USDC USDC one of the most widely used dollar-backed stablecoin USDC , with very strict regulatory 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.
Benefits :
- Increased transparency and clear management of reserves.
- Circle's strong reputation ensures user trust.
Disadvantages:
- Adoption is still relatively low, but growing.
EURt: Tether's euro stablecoin
EURt is the stablecoin issued by Tether , the same company behind USDT USDT While very popular, Tether has been repeatedly criticized for its lack of transparency regarding the reserves that back its stablecoin . In 2021, Tether faced legal action, and investigations revealed that its reserves were not solely composed of euros but included riskier assets such as bonds, commercial loans, and even cryptocurrencies. This opacity raises doubts about Tether's financial stability, despite its high liquidity in the markets.
Benefits :
- High liquidity and adoption in the crypto ecosystem.
Disadvantages:
- Lack of transparency regarding reserves and uncertainties related to audits.
- Potential risks due to the lack of transparency in its management.
EURI: Angle Labs' euro stablecoin
EURI , issued by Angle Labs , is a stablecoin particularly interesting for its high degree of decentralization and security . Unlike stablecoin such as EURS or EURt, EURI is designed to operate in a completely decentralized manner. It is integrated into several DeFi protocols, such as Uniswap , Curve , and Balancer , which guarantees high liquidity and flexibility for users.
EURI's security relies on a decentralized guarantee 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 withstand censorship and potential manipulation.
Benefits :
- High degree of decentralization, no centralized control over reserves.
- Strong integration into DeFi protocols.
Disadvantages:
- Adoption is still limited outside the DeFi ecosystem.
Differences between these stablecoin
These stablecoinare mainly differentiated by their management (centralized or decentralized), their transparency and their liquidity.
Why choose a euro stablecoin ?
For European users, using a stablecoin helps avoid exchange rate fluctuations with the dollar. These stablecoin are useful in decentralized finance for operations such as lending , borrowing , and value transfers . Value transfer refers to the act of transferring funds or assets from one account to another, often quickly, securely, and at a lower cost thanks to blockchains.
Regulation and stability of euro stablecoin
With the arrival of the MiCA ( Markets in Crypto-Assets stablecoin regulation is becoming increasingly strict. MiCA mandates regular audits, greater transparency regarding reserves, and reporting requirements for stablecoin . This ensures greater security for users while encouraging wider adoption.
Where to buy EURS, EURC, AEUR and EURI?
Euro-denominated stablecoinare available on different platforms, depending on the token sought:
- EURC (Euro Coin) is accessible on Coinbase and Bitvavo for example, two centralized platforms offering an intuitive interface for buying and trading .
- AEUR (Anchored Euro) and EURI (Euro Tether) are listed on Binance , one of the world's largest exchanges, offering advanced trading options.
- EURS (Stasis Euro) is only available on decentralized exchanges ( DEXs ) , which means you need to use a compatible wallet (like MetaMask, Trust Wallet or Exodus) or connect your wallet to platforms like Uniswap or Curve to acquire it.
To learn how to use a centralized exchange and a decentralized wallet, download our free, ultra-detailed guide here .
Conclusion: Which is the best euro stablecoin ?
Choosing the best stablecoin depends on your needs and risk tolerance. If you're looking for transparency and security, EURS and EURC are excellent options. If you prefer decentralization and greater integration with DeFi, AEUR and EURI are worth considering. Finally, EURt offers high liquidity, but its opaque management remains a 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 stablecoinpegged to the euro guaranteed?
- Each stablecoin is backed 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 euro-denominated stablecoin?
- Risks include lack of adoption, lack of transparency (as with EURt), and regulatory uncertainties.
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Which euro stablecoin is best suited for DeFi?
- EURI and AEUR are particularly suited to decentralized finance, being integrated into major DeFi protocols Uniswap and Curve.
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How to use euro stablecoinin decentralized finance?
- They can be used for lending , borrowing , or transferring value on platforms like Aave , Uniswap , or Curve .
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Yoann
Training engineer, I quickly became interested in the field of finance. Convinced that decentralized finance has a bright future ahead of it, I participate in its democratization by developing Crypternon.
