Euler Finance, a decentralized finance lending platform, has launched a hybrid token called Maxi.
The development was revealed on September 16 by Euler Labs, the group responsible for the Ethereum decentralized finance lending protocol.
According to a post on X by the platform, Maxi is a customized financing solution that aims to provide its clients with increased capital efficiency.
Maxi is a stablecoin that combines a variety of assets and cross-collateralization to reduce risk and maximize capital efficiency.
Euler disclosed that a combination of fiat-backed stablecoins, yield-bearing tokens, tokenized Treasury notes, and synthetic dollars backs the new stablecoin.
In particular, Ondo Finance’s tokenized U.S. Treasury bill Ondo U.S. Dollar Yield (USDY) and Usual Money’s stablecoin USD0, which is backed by real assets, are the assets that support the value of Maxi at launch.
The other assets are yield-bearing synthetic dollars (sUSDe and stUSD) and Ethena’s synthetic dollar (USDe). Another is Circle’s widely used stablecoin, USDC.Â
User Incentives
Ethereum is introducing a program to let users earn Ethena’s sats by collateralizing USDe and sUSDe.
In addition, network users can lend or borrow USD0 to get Usual Money Pills or stUSD to get ANGLE, the native token of the Angle Protocol. Euler XP will be awarded to users that lend USDC.
Maxi’s vaults will be actively managed, according to Euler Labs, by institutional asset manager K3 Capital, digital asset investment platform MEV Capital, and decentralized financial research provider Re7 Capital.
For optimal effectiveness and safety, these companies will keep an eye on the vault’s characteristics and make any adjustments, according to Euler Labs.
A flash loan assault occurred against Euler Finance in March 2023, and the exploit resulted in the loss of crypto assets valued at $197 million at the time.
USDC, Lido-staked Ether, and Dai-wrapped Bitcoin were among the pilfered goods. However, the hacker returned most of the money, and by early April 2023, over $177 million had been found.
