Close Menu
  • Coins
    • Bitcoin
    • Ethereum
    • Altcoins
    • NFT
  • Blockchain
  • DeFi
  • Metaverse
  • Regulation
  • Other
    • Exchanges
    • ICO
    • GameFi
    • Mining
    • Legal
  • MarketCap
What's Hot

Ether Sees Record Short Build up as Hedge Funds Pile on Basis Trade

18/07/2025

Donald Trump Slams Jerome Powell, Says “He’s Terrible” Amid $2.5B Fed Controversy

18/07/2025

Meta Pool Unveils Incentive Program Ahead of Proposed NEAR Inflation Cut

18/07/2025
Facebook X (Twitter) Instagram
  • Back to NBTC homepage
  • Privacy Policy
  • Contact
X (Twitter) Telegram Facebook LinkedIn RSS
NBTC News
  • Coins
    1. Bitcoin
    2. Ethereum
    3. Altcoins
    4. NFT
    5. View All

    What You Didn’t Know About Laszlo Hanyecz, the Bitcoin Pizza Day Legend

    18/07/2025

    Polymarket Investors Think Bitcoin Will Reach These Levels Within 9 Days! Here Are the Details

    18/07/2025

    $2.21 Trillion Market Cap Fuels Momentum

    18/07/2025

    Why one Bitcoin could soon mean one bit

    18/07/2025

    Ether Sees Record Short Build up as Hedge Funds Pile on Basis Trade

    18/07/2025

    Ethereum (ETH) Price Prediction for July 15

    18/07/2025

    Why Ethereum’s $1.5 Million Future is Possible: Expert Highlights Key Factors

    18/07/2025

    Ethereum Supply Shock Intensifies With 29% of ETH Locked in Staking

    18/07/2025

    Meta Pool Unveils Incentive Program Ahead of Proposed NEAR Inflation Cut

    18/07/2025

    Team Says Shiba Inu Is Deploying, Not Dreaming After Upgrading SHIB: The Metaverse Project

    18/07/2025

    Attention to the Algorand bull on RWAs

    18/07/2025

    the new frontiers of decentralized finance

    18/07/2025

    CryptoPunks Dominate Top Weekly NFT Sales amid Overall Market Sales Volume Surges 34.19% to $133.66 Million

    14/07/2025

    Volume Plunges While Transactions Soar

    11/07/2025

    Snoop Dogg’s TON NFT Launch Could Signal New Narrative for NFT Market

    10/07/2025

    Snoop Dogg’s Telegram NFT Drop Sold Out in Half an Hour

    10/07/2025

    Ether Sees Record Short Build up as Hedge Funds Pile on Basis Trade

    18/07/2025

    Donald Trump Slams Jerome Powell, Says “He’s Terrible” Amid $2.5B Fed Controversy

    18/07/2025

    Meta Pool Unveils Incentive Program Ahead of Proposed NEAR Inflation Cut

    18/07/2025

    Crypto Market Structure Bill Will Kill DeFi in the US, Industry Leaders Say

    18/07/2025
  • Blockchain

    OORT rolls out Web3 AI dataset on major marketplaces

    18/07/2025

    Dmail Network Joins DePIN Union to Advance Decentralized Messaging Infrastructure

    18/07/2025

    CycleX Partners with xStocks to Transform Global Stock Trading via Blockchain

    18/07/2025

    Gated Communities Are Actually Great for Crypto—Marc Vanlerberghe

    18/07/2025

    PayPal Blockchain Lead José Fernández da Ponte Joins Stellar

    18/07/2025
  • DeFi

    Blazpay Forges Partnership with X1 EcoChain to Advance Sustainable DeFi

    18/07/2025

    SolvBTC Mints satUSD Stablecoin on BNB Chain for USD Collateral, BTC-Backed DeFi

    18/07/2025

    Mezo Launches Supernormal Foundation to Support BitcoinFi Growth

    18/07/2025

    Kana Labs and Rewardy Wallet Unveil Multi-Chain Swap Experience with Version 1.4.0

    18/07/2025

    StakeStone Unlocks New Era of DeFi with USD1 Vault

    18/07/2025
  • Metaverse

    Elon Musk’s xAI Quietly Fixed Grok by Deleting a Line of Code

    09/07/2025

    Bonk.fun Grabs 55% of Solana Token Issuance Share, Pushes BONK Demand

    08/07/2025

    Apple’s Top AI Exec Leaves For Meta Amid Aggressive Hiring Trend

    08/07/2025

    Automobili Lamborghini Unveils Digital Temerario and GT3 NFTs in Wilder World

    07/07/2025

    Microsoft’s AI Diagnoses Like House, Bills Like Costco

    02/07/2025
  • Regulation

    Donald Trump Slams Jerome Powell, Says “He’s Terrible” Amid $2.5B Fed Controversy

    18/07/2025

    Trump plans to introduce new 25–40% tariffs on Southeast Asian countries

    18/07/2025

    Trump’s Tariff Threat Fails to Move the Needle on Fed Interest Rate Expectations

    18/07/2025

    Ripple CTO Speaks out on Robinhood

    18/07/2025

    MOEF Mandates Market Value for Validator Rewards Taxation

    18/07/2025
  • Other
    1. Exchanges
    2. ICO
    3. GameFi
    4. Mining
    5. Legal
    6. View All

    Bitcoin Exchange Binance Announces Support for This Altcoin’s Network Upgrade and Hard Fork! Here Are the Details

    18/07/2025

    Bitcoin Exchange Bithumb Releases New Listing Announcement! Here Are the Details

    18/07/2025

    GameStop may accept crypto payments for trading card purchases: report

    18/07/2025

    Binance leads, but OKX, Bybit and Bitget are coming strong

    18/07/2025

    ICO for bitcoin yield farming chain Corn screams we’re so back

    22/01/2025

    Why 2025 Will See the Comeback of the ICO

    26/12/2024

    CARV Joins Anomaly Games to Redefine AI-Led Gaming Interoperability

    18/07/2025

    GaFin Joins Efforts with Helium Wars to Redefine the Future of Web3 Gaming

    16/07/2025

    Crypto games are struggling in 2025, but big brands aren’t giving up

    15/07/2025

    R-Games and LoveBit Unite to Power ESG-Driven Web3 Gaming

    15/07/2025

    U.S.-Listed Bitcoin Miners Reach New Peak Share of Global Hashrate

    17/07/2025

    French lawmakers say country could generate $150M in annual revenue from Bitcoin mining

    17/07/2025

    Bitcoin Mempool Emptiness Sparks Network Security Concerns

    16/07/2025

    All-Time High Mining Difficulty, Quiet Google Trends—Is This the ‘Mature’ Bitcoin Bull Market?

    15/07/2025

    Crypto Market Structure Bill Will Kill DeFi in the US, Industry Leaders Say

    18/07/2025

    Donald Trump Jr. backs crypto bill to keep multi-trillion dollar industry in the US

    18/07/2025

    Will It Be the Leading Crypto Hub?

    18/07/2025

    Will Ripple vs SEC End This Thursday?

    18/07/2025

    Ether Sees Record Short Build up as Hedge Funds Pile on Basis Trade

    18/07/2025

    Donald Trump Slams Jerome Powell, Says “He’s Terrible” Amid $2.5B Fed Controversy

    18/07/2025

    Meta Pool Unveils Incentive Program Ahead of Proposed NEAR Inflation Cut

    18/07/2025

    Crypto Market Structure Bill Will Kill DeFi in the US, Industry Leaders Say

    18/07/2025
  • MarketCap
NBTC News
Home»Altcoins»the new frontiers of decentralized finance
Altcoins

the new frontiers of decentralized finance

NBTCBy NBTC18/07/2025No Comments5 Mins Read
Share
Facebook Twitter LinkedIn Pinterest Email


dEURO stablecoin enters the cryptocurrency ecosystem thanks to the integration on Cake Wallet, bringing a wave of innovation among digital assets pegged to the euro. The growing demand for reliable and decentralized stablecoins is accompanied by the need for secure and transparent solutions, capable of protecting users from strong market fluctuations.

In this scenario, the recent announcement by Cake Wallet to support dEURO represents an important step towards the diversification of the offering and the maturity of the stablecoin sector.

  • Key characteristics of dEURO: stability on a decentralized basis
    • Security mechanisms: automatic liquidation and risk under control
  • Profitability without giving up custody of cryptocurrencies
  • Decentralized stablecoins: promises and risks
    • The implosion of Terra-LUNA: a warning for the future of stablecoins
  • The limits of overcollateralization and the lesson of DAI
  • dEURO and the future of digital assets linked to the euro

Key characteristics of dEURO: stability on a decentralized basis

The main peculiarity of dEURO lies in its decentralization and over-collateralization. Users who wish to generate dEURO must deposit a greater amount of other cryptocurrencies compared to the actual value of the new digital asset they intend to obtain.

Among the main cryptocurrencies accepted as collateral are Bitcoin, Ethereum and Monero. This strategy of overcollateralization, meaning the deposit of assets with a value higher than the contracted debt, acts as a barrier against events of value loss of the stablecoin compared to the euro, known as de-pegging.

Security mechanisms: automatic liquidation and risk under control

Another fundamental function offered by dEURO concerns automatic liquidations. When the loan-to-value ratio of the collateral falls below a predetermined threshold, the sale of the assets deposited as collateral is automatically triggered. This ensures the stability of the stablecoin and limits potential losses for both the users and the entire protocol.

Profitability without giving up custody of cryptocurrencies

One of the reasons of greatest interest for dEURO on Cake Wallet is the possibility for users to obtain a 10% yield on their cryptocurrencies used as collateral, without giving up custody of them to third parties. This yield comes from the stability fees incurred by those who create new dEURO tokens and is deposited into a guarantee reserve. This model helps to keep the system prosperous and balanced, ensuring liquidity and solidity to investors’ assets.

  • Real yield: The remuneration offered is positioned as a true alternative to traditional lending platforms, providing economic incentives without sacrificing direct ownership of the assets.
  • Constant liquidity: Users can generate euro-linked tokens without having to liquidate or sell their cryptocurrencies, thus maintaining operational flexibility within digital markets.

Decentralized stablecoins: promises and risks

Decentralized stablecoin like dEURO embody the original spirit of the crypto community, inspired by cypherpunk principles. The goal is to create secure tools, alternative to the traditional financial system, that offer greater control and transparency to users. However, the sector has experienced delicate episodes that have highlighted its fragility: the risk of de-pegging and collapse of algorithmic tokens remains a central element of discussion.

The implosion of Terra-LUNA: a warning for the future of stablecoins

The most emblematic example was the collapse of the Terra-LUNA ecosystem in May 2022. Their stablecoin UST was not backed by real reserves, but left to an algorithmic mechanism of token creation and destruction based on the relationship between LUNA and UST. Arbitrageurs were supposed to maintain parity with the dollar by exploiting price differences, however, the demand for UST was strongly incentivized by Anchor Protocol, which offered annual returns of 20% on deposited UST.

When massive withdrawals from Anchor began, the pressure became unsustainable and UST rapidly depreciated to $0.67 and finally to just one cent of a dollar. The absence of tangible reserves proved fatal. dEURO, on the other hand, adopts the principle of over-collateralization as is already the case for DAI, another historic stablecoin in the crypto landscape.

The limits of overcollateralization and the lesson of DAI

Despite representing a step forward compared to pure algorithms, overcollateralization does not completely eliminate the risk of de-pegging. This was also seen with DAI, whose value temporarily deviated from the dollar in March 2023, after a portion of the reserves (USDC) briefly lost its peg to the US currency.

The case highlights how even stablecoins collateralized by fiat or traditional assets are not entirely immune to currency risk, especially if the reserve itself is tied to financial instruments like government bonds or bank deposits. This leads to the constant search for innovative and robust solutions, capable of withstanding market shocks and maintaining user trust.

dEURO and the future of digital assets linked to the euro

The entry of dEURO stablecoin on Cake Wallet expands the possibilities for users and investors interested in managing digital assets pegged to the euro, without giving up the guarantees and tools inherent in decentralized finance. Although intrinsic risks remain regarding volatility and possible de-pegging events, models like those of dEURO mark a significant evolution in the offering of more secure and transparent stablecoins.

“`html

The stablecoin sector, in fact, continues to experiment and adapt in response to critical episodes and changing needs. It is essential for users to delve into the composition of reserves, the functioning of liquidation mechanisms, and the structure of incentives behind each protocol. Transparency and financial education thus emerge as indispensable tools for navigating with awareness among the multiple opportunities offered by euro-pegged digital assets.

“`

dEURO brings a breath of innovation and represents a crucial test for future stablecoin models. Future developments and user response to these new solutions will help define the path of decentralized finance in the coming years. Those who approach tools like dEURO today can actively participate in building a more open and resilient global financial system.

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
NBTC

Related Posts

Meta Pool Unveils Incentive Program Ahead of Proposed NEAR Inflation Cut

18/07/2025

Team Says Shiba Inu Is Deploying, Not Dreaming After Upgrading SHIB: The Metaverse Project

18/07/2025

Attention to the Algorand bull on RWAs

18/07/2025

Moo Deng Surges As Viral Pygmy Hippo’s Birthday Plans Revealed by Zoo

18/07/2025
Add A Comment

Comments are closed.

Top Posts
Get Informed

Subscribe to Updates

Get the latest news from NBTC regarding crypto, blockchains and web3 related topics.

Your source for the serious news. This website is crafted specifically to for crazy and hot cryptonews. Visit our main page for more tons of news.

We're social. Connect with us:

Facebook X (Twitter) LinkedIn RSS
Top Insights

Ether Sees Record Short Build up as Hedge Funds Pile on Basis Trade

18/07/2025

Donald Trump Slams Jerome Powell, Says “He’s Terrible” Amid $2.5B Fed Controversy

18/07/2025

Meta Pool Unveils Incentive Program Ahead of Proposed NEAR Inflation Cut

18/07/2025
Get Informed

Subscribe to Updates

Get the latest news from NBTC regarding crypto, blockchains and web3 related topics.

Type above and press Enter to search. Press Esc to cancel.