Proposal: Launch EURC Market on Ethereum Mainnet and Base

New Markets
1

Summary

As a supporter and user of Compound, I propose launching a EURC market on both Ethereum Mainnet and Base network. This initiative aims to diversify Compound’s stablecoin offerings by introducing a Euro-backed stablecoin, thereby attracting a broader user base and enhancing global reach.

Motivation

EURC (Euro Coin by Circle)

EURC is a fully-reserved Euro-backed stablecoin issued by Circle, the company behind USDC. Integrating EURC into Compound offers several benefits:

  • Stablecoin Diversification: Expand beyond USD-pegged assets by adding a Euro-denominated stablecoin.
  • Attract European Users: Appeal to users preferring Euro transactions, increasing global adoption.
  • Forex Opportunities: Enable new financial strategies involving EUR and USD stablecoins, such as arbitrage and hedging.
  • Global Expansion: Strengthen Compound’s position as an inclusive platform accommodating multiple fiat currencies.

Points of Contact

Proposed Collateral

We propose adding the following assets as collateral for the EURC market:

  • USDC (USD Coin)
  • cbETH (Coinbase Wrapped Staked ETH)
  • cbBTC (Coinbase Wrapped BTC)
  • ETH (Ethereum)
  • wstETH (Lido Wrapped Staked ETH)

Relevant Documents and Links

EURC (Euro Coin by Circle)

Next Steps

  1. Community Feedback
  • Encourage discussions and suggestions from the Compound community regarding the EURC market launch.
  1. Market Configuration Feedback from Gauntlet
  • Request risk assessments and parameter recommendations for Collateral Factor, Reserve Factor, and Borrowing Limits.
  1. Development by Woof Software
  • Partner with Woof Software for market development and integration.
  1. Audit by OpenZeppelin
  • Commission OpenZeppelin to perform a comprehensive security audit of the new market.
  1. Deployment by Woof Software
  • Deploy the EURC market on both Ethereum Mainnet and Base network following a successful audit.

Community Input Requested

We invite the community to provide feedback on the following parameters:

  • Collateral Factor: Suggested initial collateral factor for EURC.
  • Reserve Factor: Proposed reserve factor to ensure protocol safety.
  • Borrowing Limit: Maximum allowable borrowing amount for EURC.

Thank you for considering this proposal. Your feedback and support are greatly appreciated.

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