Today, Membrane Finance announced the launch of EUROe, a MiCA-compliant, fully-backed euro stablecoin, on Solana. This creates great opportunities for dApps, marketplaces, protocols, and more catering towards European users in addition to anyone who wants to gain FX exposure on-chain.
The purpose of this post is to summarise what tools there are at your disposal to build products utilising EUROe on Solana and a few examples of what you could build with EUROe.
Building With EUROe
Firstly, the primary and only reliable source of information for anything related to EUROe program addresses and other sensitive information is https://dev.euroe.com. This is the official location of developer documentation.
EUROe has been deployed on both Solana mainnet and devnet, so you can test your apps before going live. The devnet faucet information can be found here (when available).
EUROe is a standard SPL token, so integrating it should be very straightforward. EUROe can be minted, redeemed, and bridged across all supported chains by anyone with a EUROe Account — either through the Account UI or an API. Currently, accounts can only be created by companies. You can apply for an account here: https://euroe.com/get-started
As EUROe has already been deployed to four other blockchains, pricing information for EUROe can be fetched from other sources in the absence of a Solana native oracle. For example, this Switchboard oracle provides the price for EUROe/USDC based on Uniswap v3 markets on Ethereum. As a 1:1 backed stablecoin supervised by the Fin-FSA, you could also use the EUR/USD oracle from the likes of Pyth to proxy EUROe/USD price. If you are building a euro-based product, an oracle may not be necessary. Just be sure to understand the risks and communicate them to your users accordingly.
What to build?
Forex markets: do you want to speculate on USD/EUR? There’s ample EUROe/USDC liquidity already; you can tap into the Orca pools for liquidity to create products for going short or long euros with EUROe. Solana is well suited for forex, thanks to its quick block times and finality.
Euro-lending products: Utilising the existing oracles, you could build euro-lending products. Europeans could get yield in their own currency in DeFi. Or alternatively, take out loans to pay for stuff in the real world without losing exposure to volatile assets. The lend/borrow space has been dominated by USD, but there’s definitely huge amounts of demand for euro-native borrowing and lending.
Euro-denominated investment strategies: Kamino has already launched an automated EUROe/USDC vault. But there’s so much more you could build. Kamino, or a similar other service, could be used to build automated vaults for a range of assets such as SOL/EUROe or RAY/EUROe to generate euro-denominated yields. Combine with a lending product for leverage, and you can express your view of the market just like you want it.
Blockchain-based investments for Europeans: There are some amazing DCA products on Solana already. But they have not been suitable for anyone based outside of the US because you are taking USD fx-risk. Implement a DCA product with EUROe, and Europeans can start investing in blockchain-based assets easily and automatically.
Automate fund flows between on- & off-chain: Do you want to ensure your company’s bank account always has a euro balance? Or vice versa, that you always have some euros on-chain? Very much possible! You can use the EUROe Account API together with, e.g. open banking APIs to automatically rebalance your funds between the on- and off-chain.
Receive funds on any chain and receive them on Solana: Imagine this: create smart contract wallets once on Avalanche, Arbitrum, Ethereum, and Polygon to receive payments from others in EUROe. Have them automatically transfer EUROe to your company-specific burn address and trigger an EUROe Account API call to bridge EUROe to Solana. You can receive funds on all four chains and have them automatically settled to Solana. Treasury management became just so much easier :)
Payments: Previously, it has been bothersome for Europeans to use Solana for payments as there has not been a native euro on Solana. That changes; accepting euro-denominated payments in apps or at a point-of-sale is now feasible with EUROe. Thanks to the compliant nature of EUROe and the mature stablecoin legislation in the EU, EUROe can live on the balance sheet of merchandisers and companies.
Let me know if you are building something cool! You can follow and DM me @roinevirta on Twitter.
The information provided in this blog post is provided as is on 23 August 2023. Due to the nature of blockchain development, the information may be outdated quickly.