EURO3 Coin
EURO3 is an over-collateralized, decentralized, variable supply payment coin pegged to the Euro.
EURO3 is created by users minting EURO3 loans and it’s removed from circulation (burnt) when users repay their loan or redeem EURO3 for the collateral assets.
When new EURO3 is minted by the users, the platform charges a minimum issuance fee of 0.5% (half a percent). In a situation when the demand for EURO3 is lower, and the price of EURO3 moves below 1 Euro, the issuance fee is increased, to curb the supply and bring its price back to 1 Euro.
Also, when the demand for EURO3 is lower and the EURO3 price is below 1 Euro more redemptions are expected. This brings the supply of EURO3 down and increases the demand for it, bringing its price back to 1 Euro.
The supply of EURO3 is completely decentralized and independent of the 3A DAO or any other entity. 3A users are the only ones controlling the number of EURO3 being minted and burnt in their Vaults.
Last updated