#CakeWallet Integrates dEURO #Stablecoin With 10% Yield Offering


Cake Wallet added decentralized euro stablecoin $DEURO to its platform Tuesday, expanding European cryptocurrency options for users.


The #stablecoin requires overcollateralization through $BTC, $ETH, and $XMR deposits worth more than the borrowed value.


Users can earn a 10% annual yield on #crypto holdings backing the stablecoin without surrendering custody of their assets.


Yield generation comes from stability fees paid by depositors minting $DEURO , which flow into an equity reserve pool.


The overcollateralization model protects against de-pegging events through automatic #liquidations when loan-to-value ratios drop below thresholds.


This approach allows crypto holders to generate euro-pegged tokens without selling their underlying digital assets.


Decentralized stablecoins face criticism due to historical de-pegging events, including Terra's UST collapse in May 2022.


UST relied on mint-and-burn mechanisms without collateral backing, ultimately falling from $1 to $0.01 during the ecosystem implosion.


Even collateralized options like $DAI experienced de-pegging in March 2023 when its backing asset $USDC briefly lost its dollar peg.

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July 03, 2025 at 10:15 AM
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