Title: Promote EURT to Collateral Tier
Related Discussions: N/A
Submission Date: 06.12.2022
This is an RFC to temperature-check the idea of Euro Tether (EURT) as a collateral asset.
EURT is the new stablecoin created by Tether to meet the demand for a Euro stablecoin.
Huobi who integrate it into his platform will not be the last to do so, which is why I think EURT has a bright future in the next few months, years.
Then the USD has reached a peak and some big fish will play on the rise of the euro which could accelerate the adoption of EURT stablecoin.
Not having enough hindsight on this and the risks that such a young stablecoin could have with so little supply, I come to you for your opinion on the subject.
Being a young stablecoin, I see an opportunity for Euler to be the first lending and borrowing platform to accept it at a collateral level.
If the stablecoin experiences strong adoption, we will have the advantage of the first mover.
Specification & Implementation
Being issued by the same entity as USDT, I believe it is subject to the same regulations and therefore the same security as USDT.
That is why I propose to promote it to collateral tier and enable cross borrowing with the same parameters as USDT:
- Collateral Factor: 0.9
- Reserve Factor: 0.05
- Borrow Factor: 0.94
For the interest rate model:
- Base IR: 0%
- Kink IR: 7%
- Max IR: 200%
- Kink : 0.80%
Not having enough liquidity on uniswap, I suggest to use chainlink price feeds for security reasons.
The options are as follows:
YES - Promote EURT to collateral Tier.
NO - Do not promote EURT to collateral Tier.