Hello,
This is a proposal to add support for EURCV within the Transmuter.
Context
EURCV is a stablecoin developed by Forge, an entity owned by Société Générale, one of the largest French banks in the market. It is a regulated MiCA-compliant stablecoin listed across several centralized exchanges (including Bitstamp). Through its CEX integrations, it is meant to become one of the most easiest way to onramp into crypto for European DeFi users.
As a stablecoin project maintained by one of the most trusted financial institutions in the place, having EURCV in the backing is a way for Angle to not only diversify its risk, but also increase the robustness of the reserves backing the stablecoin.
Proposal
Proposal is to add EURCV as one of the collateral assets to mint EURA in the Transmuter.
We suggest to set a maximum exposure to EURCV of 40%, and no minting or burning fees
As a MiCA compliant stablecoin, we also propose to hardcode the value for EURCV to 1€.
Value to the protocol
Given that there is no ways to earn a yield on EURCV, having EURCV in the Transmuter is a way to offer a direct way to earn a yield to EURCV holders (using EURA as an intermediate).
Contrarily to EURC on which the protocol earns nothing, we’re in the process of finding a setup in which Forge would essentially reward the Transmuter for the EURCV it holds on the basis of the following formula: 60%(€STR-80bps). At current rates, this means that the protocol would be earning 1.6% for every EURCV it holds.
This onboarding is also a great occasion to partner with one of the most trusted players in finance overall in the person of Société Générale.
Implementation
Following the validation of the reward setup for the Transmuter, we suggest to build €1m in initial reserves in EURCV obtained by swapping out of bC3M.