[Gauntlet] - Integrate EURC on Euler Prime (2025-07-08)

Euler DAO
1

Overview

EURC is a euro-pegged, crypto-native stablecoin launched by Circle. It is fully collateralized by segregated euro-denominated reserves, including bank deposits, short-term treasury bills, and commercial paper, and adheres to the ERC-20 token standard. Monthly attestations by leading audit firms ensure that each EURC token remains backed 1:1 by euro-equivalent assets, providing transparency and strong on-chain stability.

Token Risk

EURC has the same risk profile as USDC.

Token S&P Global Risk Rating Report
USDC Strong (2) Link
EURC Strong (2) Link

Onchain Summary

  • Total Supply: $210M
  • Estd* DEX Liquidity: $48.4M
  • Estd* DEX Daily Volume: $34.7M

Cap Recommendations

Token Supply Cap Borrow Cap
EURC 12M 11.4M

The Supply Cap is set to 25% of DEX liquidity. The Borrow Cap for EURC is set to 95% of the Supply Cap.

Interest Rate Curve Recommendations

Since EURC has a risk profile that is very similar to USDC, we recommend using the same Interest Rate Curve as USDC:

  • Kink utilization of 90%
  • Kink borrow APY of 5.5%
  • Max APY of 40%

LLTV Recommendations

We recommend setting the LLTV to the same rates as USDC on Euler Prime.

Collateral Debt LLTV
EURC ezETH 80%
EURC rsETH 80%
EURC weETH 80%
EURC tETH 80%
EURC WETH 87%
cbETH EURC 80%
weETH EURC 80%
wstETH EURC 83%
LBTC EURC 84%
WETH EURC 85%
WBTC EURC 86%
cbBTC EURC 86%
wstETH EURC 87%
wM EURC 90%
EURC EURC 92%
sUSDe EURC 92%
ezETH EURC 77%
rETH EURC 77%
rsETH EURC 77%
tETH EURC 77%
USDS EURC 94%
sUSDS EURC 94%
sUSDS EURC 94%
RLUSD EURC 95%
USDT EURC 95%
USDtb EURC 95%
EURC USDS 95%
EURC USDtb 95%
EURC RLUSD 95%
EURC EURC 93%
EURC USDT 95%
EURC cbBTC 80%
EURC wstETH 83%
EURC cbETH 80%
EURC rETH 80%
EURC LBTC 80%
EURC WBTC 82%
EURC wM 93%
EURC USDC 95%
USDC EURC 95%

Borrow LTVs to be set 2 percentage points less than LLTV.

Next Steps

  • We welcome community feedback.
2

Summary

Objective Labs has reviewed Gauntlet’s recommendations about EURC on Euler Prime. Our recommendation is not to list EURC at this stage due to low DEX liquidity and limited demand.

Liquidity Risk

Our analysis could not confirm Gauntlet’s stated figures for DEX liquidity. EURC has less than $10M total liquidity to USDC.

Our liquidity simulations indicate that EURC can support trades up to ~$900K with minimal slippage (<0.5%), and up to ~$1.5M with slippage staying below 1%. Beyond this range, slippage increases more sharply, reaching ~2.9% at $3.25M trade size.

These levels suggest the market is not deep enough to support healthy collateral liquidations given that Euler Prime attracts many uncorrelated borrowers. Market depth would be a persistent concern for increasing caps for EURC on Euler Prime and the same could not be prudently increased above 3M.

Low Demand

To gauge market demand for EURC we look at existing lending protocol integrations. EURC is listed on Aave on Ethereum with total supply <$2M. EURC is also listed on Aave on the Base instance with supply at $20M. The majority of EURC liquidity is on Base, and more EURC incentive programs historically have been run on Base. Given Coinbase and Circle’s relationship, we believe Base is a more strategic chain for EURC and thus growth potential on Ethereum is limited. We estimate <$1M organic demand for EURC on Euler Prime.