Summary
This is a proposal for creating a new liquidity market to support Circle’s EURC stablecoin token for lending and borrowing on the Liqwid protocol via the Wanchain bridge.
https://www.coingecko.com/en/coins/eurc
Project and Token Overview
The leading euro stablecoin for crypto capital markets, EURC is MiCA-compliant and redeemable 1:1 for euro.
EURC stablecoin has a market cap of $212.4M with 24 hour spot trading volume of $79.6M. Majority of EURC is deposited on Ethereum, Base and Solana which are all supported via the Wanchain bridge.
EURC Market Reasoning
The protocol’s most utilized markets have historically been USD stablecoins but several users have requested adding support for alternative currency options to USD. EURC has the largest EUR stable market cap and benefits from all of Circle’s existing infrastructure for USDC.
Risk Considerations
Bridging risks exists. To mitigate this EURC will receive collateral power against other Wanchain bridged assets.
Suggested EURC Market Parameters
EURC Market proposed interest rates parameters are the same as the other stablecoins listed on Liqwid, such as wanUSDC or USDM.
Interest rate market parameters:
- BaseRate 5.00%
- utilMultiplier 4.00%
- utilmultiplierjump 775.00%
- Kink rate 90.00%
Risk Parameters
-LiquidationLTV Threshold: 80.00%
-MaxLTV: 79.90%
-Liquidation Penalty: 10.00%
-Liquidation Profitability:11.11%
Specifications
Liqwid Labs developers have completed the necessary technical requirements for deploying a Wanchain bridged EURC market. The team will proceed with finalizing oracle testing.
Conclusion
The Core Team strongly recommends the adoption of this proposal to add support for a Wanchain bridged EURC market for lending and borrowing on Liqwid.
Do you support this proposal?
- Yes
- No