Electronic Dollar
Launched by MobileCoin, powered by the Reserve Protocol
Staking incentive from underlying asset yield leading to overcollateralization
What is eUSD?
Launched by MobileCoin on Reserve Protocol
eUSD deployed on Ethereum mainnet and backed 1:1 by a diversified basket of yield-bearing, stablecoin derivatives utilizing Compound and Aave (aUSDC, cUSDC, aUSDT, cUSDT). eUSD is decentralized, community-governed, and censorship-resistant.
Inspect collateral backingBridged to the MobileCoin L1 blockchain, eUSD enables borderless, private-payments at sub-penny fees. eUSD is self custodial and transfers are zero-knowledge encrypted yet regulatory friendly thanks to a privacy protecting KYC/AML-permissioned bridge.
Reserve Rights (RSR) governance token stakers earn a 100% share of eUSD yield in exchange for providing overcollateralization (first loss capital). This mechanism was stress tested in March 2023 when eUSD self-restored to a $1 peg after a bank run event impacted its underlying USDC collateral.
eUSD has pre-programmed emergency procedures when a collateral depeg event is detected. Should this occur, eUSD autonomously auctions the failing collateral, and along with slashing the first loss capital pool, deploys the proceeds to purchase backup collateral which can consist of one or more of the following: USDC, USDT, USDP, TUSD or DAI.
On Ethereum mainnet, eUSD is a censorship-resistant stablecoin for DAO treasuries and deep DeFi liquidity. On the MobileCoin blockchain eUSD enables borderless, private-payments at sub-penny fees. Mint/redeem eUSD on Ethereum at Register.app or purchase/send/receive eUSD on MobileCoin at MOBY.app.
Ecosystem
Explore the ways you can Use, Buy and Inspect eUSD across both networks.
eUSD vs USDC
Some of the trade-offs are you making when choosing between eUSD and a trusted stablecoin like USDC
USDC eUSD asset backing is geographically and counterparty diverse and can be modified only by community governance with time to exit/redeem before any changes are made.
Anyone can mint or redeem eUSD and verify asset backing reserves on chain 24/7.
eUSD has a first-loss capital pool provided by Reserve Rights (RSR) stakers, which was successfully stress tested during the March 2023 bank run impacting USDC.
eUSD is governed by a community of stakers in a public approval process with transparent checks and balances on-chain.
While the underlying Reserve protocol has completed six audits on its smart contracts, eUSD is less than one year old and may have yet undiscovered flaws in its short lifespan. eUSD has not yet achieved the “Lindy effect”.
USDC is fully backed by US Dollars held in reserve by a custodian and is subject to regular audits and it uses a simple and well-tested smart contract design.
USDC has the “Lindy effect” because it has been in existence for 5 years and has become one of the most widely used and trusted stablecoins in the world.
USDC management is centralized, utilizing opaque decision making and vulnerable to errors, censorship, or wrongdoing.
During the 2023 run on Silicon Valley Bank it was revealed that a material amount of USDC backing was not covered by FDIC Insurance, in which case holders would absorb some losses.
Counterparty risk is concentrated in a few financial institutions, limiting recovery options in the event of a bank run or black swan event.
eUSD asset backing is geographically and counterparty diverse and can be modified only by community governance with time to exit/redeem before any changes are made.
Anyone can mint or redeem eUSD and verify asset backing reserves on chain 24/7.
eUSD has a first-loss capital pool provided by Reserve Rights (RSR) stakers, which was successfully stress tested during the March 2023 bank run impacting USDC.
eUSD is governed by a community of stakers in a public approval process with transparent checks and balances on-chain.
While the underlying Reserve protocol has completed six audits on its smart contracts, eUSD is less than one year old and may have yet undiscovered flaws in its short lifespan. eUSD has not yet achieved the “Lindy effect”.
USDC is fully backed by US Dollars held in reserve by a custodian and is subject to regular audits and it uses a simple and well-tested smart contract design.
USDC has the “Lindy effect” because it has been in existence for 5 years and has become one of the most widely used and trusted stablecoins in the world.
USDC management is centralized, utilizing opaque decision making and vulnerable to errors, censorship, or wrongdoing.
During the 2023 run on Silicon Valley Bank it was revealed that a material amount of USDC backing was not covered by FDIC Insurance, in which case holders would absorb some losses.
Counterparty risk is concentrated in a few financial institutions, limiting recovery options in the event of a bank run or black swan event.
Please don’t view this as a comprehensive or complete comparison. It’s biased and can’t be an apples to apples comparison.
We believe eUSD will grow to become a preferable option to fully centralized over time as eUSD survives and thrives in the wild.
Today, eUSD is partially backed by USDC. If you want to learn more about how it handles the USDC de-peg of [insert month] you can read about it here.