Euler Finance Unveils New Stablecoin Maxi a DeFi Protocol Innovation
Euler Finance, a decentralized finance lending platform, has unveiled an innovative hybrid token known as Maxi. The announcement was made by Euler Labs, the team behind the Ethereum-based lending protocol, on September 16. As detailed in a post on X, Maxi is tailored to enhance capital efficiency for its users.
### A Stablecoin with Diverse Asset Backing
Maxi functions as a stablecoin, distinguished by its unique combination of assets and cross-collateralization strategies aimed at improving capital efficiency and mitigating risk, according to Euler Finance. The assets supporting this new stablecoin include tokenized treasury bills, yield-bearing tokens, synthetic dollars, and fiat-backed stablecoins. Notably, Maxi is introduced with backing from Ondo Finance’s U.S. tokenized Treasury bill, known as the Ondo U.S. Dollar Yield (USDY), along with Usual Money’s real-world asset-backed stablecoin, USD0.
Additionally, the backing assets encompass Ethena’s synthetic dollar, USDe, and yield-bearing synthetic dollars such as sUSDe and stUSD. Circle’s widely-utilized stablecoin, USDC, also plays a role in this backing structure.
### Incentives for Engagement
To encourage user participation, Euler is launching an incentivization program. This initiative will enable users to collateralize sUSDe and USDe in exchange for Ethena’s sats. Participants in the network can also lend or borrow using USD0 to earn Usual Money Pills, or utilize stUSD to gain Angle Protocol’s native token, ANGLE. Those who lend USDC will be rewarded with Euler XP.
### Institutional Support for Maxi Vaults
Euler Labs has enlisted the expertise of several firms to oversee the management of Maxi’s vaults. K3 Capital, an institutional asset manager, along with MEV Capital, a digital asset investment platform, and Re7 Capital, a decentralized finance research provider, will play active roles in monitoring and optimizing vault parameters to ensure efficiency and security.
In March 2023, Euler Finance faced a significant flash loan attack, resulting in the loss of $197 million in cryptocurrency assets, including Dai (DAI), wrapped Bitcoin (WBTC), Lido staked Ether (stETH), and USDC. Fortunately, the hacker returned a substantial portion of the stolen funds, with over $177 million recovered by early April 2023.
For more details:
Euler exploiter remorseful, returns more funds to protocol.
