Launch of EURC pools on Stargate

Introduction

This proposal seeks approval from the Stargate DAO to establish an EURC pool on Ethereum, Base and Avalanche.

Motivation

EURC is a Euro-backed stablecoin, that is MiCA-compliant and issued by Circle. It is 100% backed by the Euro with Euro-reserves transparently held at regulated financial institutions.

Increased demand for the EURC is shown by its parabolic increase in supply, from under $50m 9 months ago to over $230m currently. Demand for it in DeFi has also given rise to Aave allowing its users to borrow or use EURC as collateral. Today, however, there is no good way to bridge EURC across these chains.

Stargate already has a close relationship with Circle, helping to expand to longer tail chains via the USDC.e (bridged USDC), allowing these chains to receive a canonical and native-backed stablecoin to bootstrap their ecosystem. Stargate should continue to progress this with EURC by having EURC pools launched on top of Stargate with the possibility of EURC.e as a Hydra asset for HydraChains.

Proposal

Stargate should launch small pools with the aim of €2m per chain with the help of incentives to facilitate the bridging of EURC across chains. This allows Stargate to gain a strong foothold in the EURC cross-chain flows.

Incentives will be paid by ecosystem teams, sufficient to incentivise the target amount of liquidity for 6 months. After which, the pools are ideally self-sufficient due to Hydra, or the DAO can call on incentivising the pools with $STG.

EURC should become a Hydra asset, allowing pre-existing and new ecosystems to have access to EURC.e.