More than ever, the DeFi market is attracting new capital, and threatening to break into the mainstream conversation. However, for this to happen, the entire ecosystem must evolve in such a way that it becomes easier for traditional finance to integrate and use decentralized financial offerings.
Hence, it is imperative to set up more versatile and accessible solutions that could bridge the gap between traditional finance and open finance. This is where a platform like EURxb.finance enters the fray. This project has enabled a functioning system where investors can adopt DeFi without the risks normally associated with cryptocurrency.
What Is EURxb.finance Proposing?
EURxb.finance believes that the next stage could be the mainstream DeFi phase. And it has set out to simplify the technology by opening up the landscape to a new market segment. The development team has opted to infuse elements of stability and a top-notch user experience to cater to the needs of mainstream investors.
The goal is to make DeFi as sustainable and appealing as traditional investment options. Hence, it is no surprise that EURxb.finance has strived to create a compliant-focused solution. Building on top of the majority of DeFi products, EURxb.finance’s offerings provides an acceptable level of institutional compliance. While this summarizes the objective of EURxb.finance, it is the development team’s approach that makes the project unique and innovative. More impressive is the fact that they already have a fully functioning ecosystem.
How Did EURxb.finance Bring Its Plan to Life?
The strategy utilized by EURxb.finance focuses on stability and compliance. The team figured that the best way to achieve this is to launch a stablecoin, particularly one that is pegged to the euro. However, in this case, it is not enough to implement common stablecoin architecture. Instead, EURxb.finance has opted for something more sophisticated and effective.
For a more efficient product, EURxb.finance has chosen alternative collateral for its stablecoin, EURxb. The token is backed by registered securities in the form of senior secured green bonds issued by MIRIS AS, a Norwegian sustainable real estate developer. EURxb.finance collateralized the registered securities to mint non-fungible tokenized bonds, and thereafter locked the NFT-based bonds in a smart contract to issue the euro-dominated EURxb. So, this means that the entire system is verifiable and secured by blockchain infrastructure.
Also, EURxb inherits the regulatory benefits of being pegged to registered bonds. Likewise, it possesses the same investment opportunities available to the green bondholders. And considering that MIRIS AS’s bond generates a fixed 7% annual interest, EURxb holders automatically accrues fixed annual yields. What this means is that you get to earn 7% interest yearly for holding EURxb.
Due to the interest-bearing nature of EURxb, it is clear that it has an added advantage over alternatives. Besides, it functions as a regulated DeFi entering point for institutional investors. As such, investors can earn extra interest from other DeFi strategies like buying tokens with EURxb or providing liquidity to selected DeFi protocols. In a way, EURxb can spur an inflow of institutional capital to the DeFi market.
And although EURxb.finance’s offering is backed by regulated assets, the ecosystem has opted for a community-based governance system where users get to have a say on how the project is being run. All you need to do is acquire the ecosystem’s governance token, XBE, to become an active contributor to the future development of EURxb.finance. With this, the project has merged DeFi and traditional finance to great effect.
Is EURxb A Good Investment Instrument?
It is remarkable that EURxb.finance has found a sustainable solution to unlock the DeFi market to a broader audience. It is one of the few DeFi products rightly positioned to usher in institutional involvement in open finance. Also, its capacity to deliver a fixed interest yearly offers holders stable income without the risks associated with DeFi. All these benefits make EURxb a sensible investment instrument for not just institutional investors. If all goes as planned, it could become a mainstay in the present and future DeFi market.