3A Lending Protocol
  • ๐Ÿ‘‹Welcome to 3A
    • Quick Start
  • PROTOCOL DOCUMENTATION
    • Lending
      • Vaults
        • Issuance Fee
      • Stability Pool
      • Liquidation
        • Stability Pool Liquidations
        • Dutch Auction
        • Community Liquidations
      • Redemptions
    • EURO3 Coin
      • EURO3 Price Stability
      • WatchDog Bot
    • A3A Token
      • A3A Staking and Cashbacks
      • A3A Rewards
    • 3A Ecosystem Incentives
    • Premium Services
      • Vault Optimization Bot
  • TECHNICAL DOCUMENTATION
    • User Interface
    • Smart Contracts
      • Linea Mainnet Contracts
      • Polygon Mainnet Contracts
      • RedBelly Testnet Contracts
      • API
      • Interacting with contracts
        • Creating a vault
        • Adding and removing collateral
        • Borrowing and Repaying
    • Audit Report
      • Hypernative
    • Bug Bounties
  • WHITELISTING CRITERIA
    • Overview
    • Mandatory Requirements
    • Risk Methodology
      • Fundamental Risk Score
      • Technical Risk Score
      • Market Risk Score
    • Risk Sensitive Parameters
    • Whitelisted Tokens
  • COMMUNITY REWARDS
    • Centurion
    • Referral System
  • GOVERNANCE
    • 3A DAO
    • Voting
    • Forum Discussions
  • COMMUNICATION
    • Contact Us
    • Team Contacts
  • USER GUIDE
    • Frequently Asked Questions
    • DeFi Glossary
  • BRAND ASSETS
    • Logo Package
    • Color Palette
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  1. PROTOCOL DOCUMENTATION

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 itโ€™s removed from circulation (burnt) when users repay their loan or redeem EURO3 for the collateral assets.

The supply of EURO3 will always closely match the demand for EURO3.

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.

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Last updated 1 year ago