How EURST works
EURST is the first live audited USD asset backed euro stable token. It has been created to upgrade the european digital economy by making it more accessible, transparent and fully reliable.
EURST is a cryptographic token built on the Ethereum network according to the ERC20 standard and represent a units of 1EURO
EURST is a fiat-backed-stablecoin, in public real time audited system. Based on this definition, every EURstablecoin represents a claim on the issuer over the funds it received from users. All The funds are held by a custodian for this purpose in a segregated account in order to ensure the funds backing EURSTABLECOIN are redeemable according to the terms of service, either on the basis of bilateral contracts.
User transfers funds to the account the issuer opened with a custodian who shall keep them safe. Upon confirmation that the funds have been received by its custodian, the issuer creates and allocates an equivalent amount of EURstablecoin through the smart contract it maintains. The issuer is directly accountable for he redemption of Eurstablecoin.
Through the Ethereum network ,the sender of EURstablecoin initiates the transfer to a receiving user by instructing the smart contract accordingly. Network participants verify that the transfer is in line with the rules of the initiative and validate the transfer.
The process of Redeeming
Units of EURstablecoin is similar to the issuance but works in reverse. A user may send units of EURstablecoin to the dedicated network address specified by the issuer who shall withdraw them from circulation (in jargon “burn” them) to maintain the redeemability of circulating units for the funds backing them. Once these units are burnt, the custodian is instructed to transfer an equivalent.