As a seasoned analyst with years of experience in the cryptocurrency market, I find the introduction of Maxi by Euler Finance to be an intriguing development. The blend of assets and cross-collateralization for capital efficiency and risk mitigation is an innovative approach that could potentially disrupt the current stablecoin landscape.
Decentralized finance lending platform Euler Finance has introduced a new hybrid token called Maxi.
On September 16th, Euler Labs, creators of the decentralized finance lending protocol on Ethereum (ETH), unveiled the creation of a new service called Maxi. According to their announcement on X, Maxi is a custom lending product tailored to provide users with enhanced capital efficiency.
A stablecoin backed with range of assets
According to Euler Finance, Maxi is a type of digital currency that maintains its value by combining various assets and utilizing cross-collateralization. This approach offers benefits such as increased capital efficiency and reduced risk.
Maxi’s new stablecoin, according to Euler, is supported by various assets such as tokenized treasury bills, interest-generating tokens, synthetic dollar equivalents, and traditional fiat-based stablecoins. To be more precise, Maxi’s value is initially secured by assets like Ondo Finance’s U.S. tokenized Treasury bill (Ondo U.S. Dollar Yield or USDY) and Usual Money’s real-world asset-backed stablecoin, USD0.
Other resources include Ethena’s synthesized U.S. dollar versions, USDe, sUSDe, and stUSD. Additionally, the widely used stablecoin USDC from Circle, known as USD Coin (USDC), is another option.
Incentives for users
Euler is introducing a rewards program where users can secure their sUSDe and USDe to gain Ethena’s satoshis. Participants in the network can also opt for lending or borrowing with USD0, earning Usual Money Pills, or amassing Angle Protocol’s native token ANGLE by holding stUSD. Those who lend USDC will be rewarded with Euler XP points.
K3 Capital among firms helping to secure Maxi vaults
As reported by Euler Labs, the institutional asset manager K3 Capital, the digital asset investment platform MEV Capital, and the decentralized finance research provider Re7 Capital are all set to proactively oversee Maxi’s digital wallets or vaults.
Euler Labs pointed out that these companies will optimize and modify the settings of their vaults whenever feasible, aiming for the highest levels of efficiency and security.
In March 2023, Euler Finance experienced a flash loan assault, resulting in the theft of approximately $197 million worth of cryptocurrencies at that moment. The pilfered assets encompassed Dai (DAI), Wrapped Bitcoin (WBTC), Lido staked Ether (stETH) and USDC.
By early April 2023, approximately $177 million had been retrieved, as the hacker chose to return the majority of the stolen funds.
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2024-09-16 21:24