EURST use cases
The EURST stable token has been created to satisfy the daily need of making transactions like paying for goods in the corner shop, transfer high volumes of liquidity and many more. EURST is a token tailored to the community.
Stablecoins have a value that is designed to be stable over any period. This feature makes stablecoins an ideal safe heaven asset because, unlike cryptocurrencies like Bitcoin that can fluctuate dramatically in price every day, an individual using stablecoins to store value sees no risk of loss, especially because they have full custody of their assets.
The importance of both the price stability and selfcustodial nature of stablecoins has recently been illustrated with the politicoeconomic crisis in Venezuela, where many citizens fleeing the country have stored their savings in Bitcoin to avoid confiscation of their fiat money.
Fiat onramps and offramps cost fees, making stablecoins a prime solution for exchanges and institutional traders who want the ability to reduce crypto exposure without fully cashing out. This use case is already in full effect; Tether, the largest stablecoin by market capitalization, was used in 40% of transactions on Binance and 80% of transactions on Huobi, which are two of the world’s biggest exchanges.
Businesses benefit from accepting stablecoins as payment because, in doing so, they circumvent the 2–3% transaction fees that accompany the intermediary processing fees by financial institutions. Furthermore, Facebook’s Libra is poised to take on payments globally, taking advantage of the low transaction fees that blockchain technology enables.
Cross-border payments and remittance are very real problems that overseas workers face when trying to send money home. Sending money internationally comes with high fees. For example, most migrant workers in Asia send home approximately 180 euro monthly, but they must pay 10 euro in international transfer fees–half a day’s wages gone for many.
Blockchain solutions like Ripple’s xRapid (XRP) have been developed, demonstrating the viability of the blockchain in solving the remittance problem. However, stablecoins could lower fees even further because of their inherent price stability
1.7 Billion adults worldwide don’t have access to a bank account. However, all that one needs to have a stablecoin “bank account” is internet access. Users have full custody of their funds with stablecoins and are not subject to bank failures or limited bank hours. There are also underbanked businesses that cannot open a company bank account for one reason or another that benefit from stablecoins as a method of alternative banking, allowing them to securely store their assets.
When settlements are paid out, they are often unable to be delivered immediately because
they are subject to normal bank hours. However, stablecoins operate 24/7 because they run
on the blockchain, not a centralized financial institution with business hours. Therefore,
parties receiving compensation from settlements can receive their money instantly through
Stablecoins make the process of escrow completely automated through smart contracts that programmatically evaluate escrow conditions, without the need for institutional intermediation. Because smart contracts using stablecoins are on the blockchain, they are fully and publicly auditable. Furthermore, stablecoins provide price stability to escrow smart contracts, which, especially with large escrow holdings, can suffer significant losses from volatility.
Stablecoin lending is currently one of the most high-yield opportunities for debt investors, offering double-digit interest rates. This demand is fueled by massive institutional demand for stablecoin loans, which ties back to stablecoins’ use in trading. Compared to savings accounts offered by banks which max out at 2.15 APY, stablecoin returns on decentralized crypto lending platforms can be as high as 15%.
Decentralized applications with payment integration usually accept the native token of the platform that they run on, such as Ether. But because ether’s price fluctuates, the payments that decentralized application creators receive are subject to the variable market price.
This could affect the development and sustainability of these decentralized applications if they do not receive enough funds from dropping payment prices. Stablecoins allow for a more robust decentralized application ecosystem because they can be used as a stable payment method for decentralized applications.
Faster, Cheaper and Borderless
EURST allows borderless and fast transactions at all hours no matter if it’s a weekend or not, thanks to blockchain. Every transaction will be executed in a matter of minutes depending on the amount for a way lower cost.