Since 2017, hundreds of stablecoin projects have appeared. However, to date, only a tiny part of these projects have passed the test of time and enjoy users’ trust. Moreover, most stablecoin projects suffer from a lack of transparency and issues with financial regulators.
To get ahead of the shortcomings of its predecessors, the STASIS project was developed, which is designed to become a bridge between decentralized finance and the off-chain market. Read about the advantages of this project in today’s article.
What Is STASIS?
One of the first stablecoin projects was Tether, which set out to create digital analogs of the most used fiat currencies. However, in the context of scandals and suspicions of fraud, trust in this platform was undermined, and many users began to look for alternatives.
STASIS offers exactly such an alternative. The project team has released a stable EURS coin pegged to the euro. To date, EURS is the only stablecoin issued within the framework of STASIS. However, in the future, the developers plan to expand the line and tokenize both fiat currencies and, for example, art objects.
It is worth noting the focus of STASIS on regulatory compliance. The company is based in Malta, an island nation seeking to settle and provide legal support for the further development of digital technologies.
As part of this course, the Maltese government adopted three laws focused on the legality of conducting a cryptocurrency business, the illegality of market manipulation, and providing incorrect information during a marketing campaign or ICO.
Licensing of STASIS EURS allows the company to obtain legal status and increases trust among users and investors. This issue emphasizes the focus on large players and institutional investors who, in the absence of a secured cryptocurrency and stability, have not yet invested large sums in digital technologies.
EURS is an ERC-20 token fully secured with real amounts in euros on the accounts of partner institutions voted for by members of the STASIS Foundation. As for the support of the tight pegging of the EURS to the EUR exchange rate, it is provided through arbitration. That is, arbitrageurs can earn income by buying EURS when the price is lower and selling when the price is higher, thus leveling the price of the stablecoin.
Developers pay great attention to the transparency of STASIS EURS. Scheduled checks of the account status are carried out daily. The company is open to audit and is ready to provide evidence of the security of the issued funds. In addition to the daily account statements, which can be downloaded from the project’s official website, the company also undergoes monthly verifications and quarterly audits by BDO Malta. Moreover, each onboarded entity can request an unscheduled verification.
Users can purchase EURS on some partner exchanges, such as HitBTC, Changelly, Bitfinex, or Anyswap. In addition, for those who wish to receive a large amount of EURS.
- The use of blockchain technology in asset tokenization provides increased efficiency by reducing the number of intermediaries, which leads to faster, potentially cheaper, and hassle-free execution of transactions.
- The use of smart contracts reduces the cost of issuing and administering digital assets, as well as reduces the cost of transactions and increases the speed of transaction execution.
- Custodian chains, usually included in traditional storage and accounting schemes, can be minimized and ownership transparency increased, which will avoid potential liquidity problems for market participants in the event of operational problems or financial difficulties at the custodian level.
- The distributed nature of the blockchain without a single “point of failure,” the immutability of the registry, and the use of cryptography increase the stability and security of the stablecoin.
- EURS provides increased transparency regarding transactional data, information about the issuer, and the characteristics of a digital asset.
- Since smart contracts automatically apply programmed regulatory restrictions, increased market transparency is also achieved in compliance with regulatory requirements and interaction with regulatory authorities. Moreover, regulators may also have online information about specific events of interest to them in the network.
STASIS is one of the largest stablecoin projects aimed at the tokenization of the euro. Due to the high transparency and the initial focus on regulations, the project has a great chance of success and users’ trust.
In the future, with the expansion of the STASIS product line, it is expected that the project will gain even greater popularity and will be able to stand neck-and-neck with the most capitalized stablecoin projects.