EURxb enables fixed and variable annual interest to investors

The DeFi narrative has shifted from a mere experimental ecosystem of distributed financial services to being considered the future of finance. However, for this to materialize, DeFi must begin to take up simpler and more appealing designs. This is where DeFi products like EURxb and XBE enter the fray. With functionalities ranging from fixed returns, DeFi yields, and on-chain governance, EURxb and XBE bring DeFi to a broader audience.

EURxb.finance is a project that aims to demystify DeFi and provide suitable entering points for institutional investors. The goal is to incorporate elements of traditional finance and decentralization to create a stablecoin that would also function as a regulated gateway to the DeFi market. The result is EURxb, a Euro-backed stablecoin.

Nonetheless, EURxb is not just another stablecoin. Its functionality is not restricted to the basic stability feature that other stablecoins provide.

Unlike a majority of stablecoin, EURxb transcends the fiat-pegged architecture that defines the value of most stablecoins. Instead, the coin is backed by tokenized and registered bonds denominated in euro. For every EURxb issued, there is an ISIN-registered bond locked on the blockchain that ensures that each coin retains a 1:1 peg to 1 EUR.

And since the product is collateralized with securities, it ticks all the boxes that an institutional investor may require. In essence, EURxb ultimately enables a regulated entering point for institutional investors, among other things.

How Are EURxb And XBE Improving Defi?

EURxb’s unique selling points boils down to its architecture. Due to its security backing, EURxb is not just targeting the DeFi landscape.

It is among the few digital assets innovative enough to bring the euro-backed stablecoin market on par with the USD alternative, especially in terms of market domination. It is no news that USD-pegged digital assets dominate the stablecoin conversation and account for a large share of the market.

The emergence of EURxb brings more features as holders can look to the transparency of the token to verify that registered security has indeed been collateralized. The decision to opt for a DeFi architecture makes EURxb verifiable and immutable to manipulations. Another important advantage is that EURxb features the same interest-bearing nature of the underlying bonds.

The tokenized bonds offer 7% annual interest to bondholders. Therefore, EURxb holders enjoy the same benefit and will automatically accrue a 7% annual yield for holding EURxb in their wallets. This is unlike anything we have witnessed in the stablecoin market and it places EURxb in a league of its own.

In addition to this fixed interest, users can earn more interest by capitalizing on other DeFi offerings. The project unlocks DeFi strategies that promise up to 7% annual interest from strategic DeFi ventures. Users can use their EURxb on other protocols for more exposure to yield-generating opportunities.

Furthermore, the platform has also introduced on-chain governance to establish a community-focused ideology for the EURxb ecosystem.

Participants can take part in the decision-making process and contribute to future development designs and implementations. To achieve this, the project has issued its governance token, XBE, to authenticate holders’ claims to voting rights. EURxb.finance, via a liquidity incentive program, has distributed 12,000 XBE out of the 15,000 XBE issued in hopes to democratize the ecosystem.

Notably, these offerings will bring elements of maturity to the DeFi market and the crypto space at large. Ultimately, EURxb unlocks DeFi to more investors. This will eventually contribute positively to the crypto market even as more assured means of providing liquidity are accessible. And from what we have learned so far, the inflow of more capital will likely impact the prices of cryptocurrencies, especially Bitcoin and Ethereum, positively.