Step by Step: How does the EURST platform work?

Step by Step: How does the EURST platform work?

The EURST platform is an ecosystem of products and services that use the EURST stablecoin to handle transactions and payments. Built to digitize the Euro and reinvent the unpredictable European economy, EURST has a vast array of functions across the platform, all of which fully utilize the power of cryptocurrencies and blockchain technologies to offer a market-leading stable asset.

The EURST token is a live audited, asset-backed stablecoin. It’s currently the leading global USD-backed stablecoin and is used heavily across global markets on leading exchanges as a stable asset. Being a Euro-based digital asset, it can be used as a version of fiat and currency within the crypto ecosystem, facilitate global payments & remittance for merchants and handle OTC Trading, custodial and Escrow services for investors.

Built on the Ethereum network, EURstablecoin (EURST) utilizes a proven centralized model to fully back issued assets with the equivalent in FIAT currency (USD). The use of a physical, real-time audited and redeemable USD reserve effectively creates a stable peg, ensuring that the market value of EURST tokens, which equates to €1, consistently remains at a market value equivalent to $1.

The funds are managed in a real-time, fully transparent reserve managed by Wallex Trust, the central issuer of EURST tokens, as well as various custodial partners. The assets undergo regular third-party audits, with token issuance and redemption transactions recorded on-chain. All off-chain transactions, as well as reserve balances, also remain fully transparent.

How the EURST platform works

The EURST token serves three main purposes in the cryptocurrency industry. Each product and service offering focuses on fulfilling the different needs of users across the industry and ensuring that the EURST token remains a viable solution in the stable asset markets.

The EURST Token

The main use of EURST is as a tradable asset and form of currency across the crypto ecosystem, which includes crypto exchanges, DeFi platforms and payment platforms.

It serves many functions within the industry; EURST can be bought, redeemed, transferred, traded, sold, borrowed or lent, used for payments and remittances or simply held as a stable asset during times of market volatility.

The token is stored electronically on a blockchain, which represents an open, transparent, distributed ledger of transactions. Using a blockchain means that the EURST token can handle transfers, payments and remittances using smart contracts, which are coded, programmable contracts that execute automatically when certain conditions are met.

Through smart contracts, EURST tokens can be freely traded, issued and redeemed instantly, for zero fees, as a digital asset across the entire crypto ecosystem with ease and simplicity.

The token plays a vital role in the thriving DeFi space, which uses stable assets such as EURST to balance their platforms using the stability and security provided through the token.

DeFi also allows the EURST token to be borrowed or lent using stablecoin lending platforms, which offer high-yield opportunities for investors. Due to increased demand for stablecoin loans, DeFi platforms can offer much higher yields than legacy FIAT-based banking institutions.

Additionally, for those without a bank account, EURST offers a viable alternative through a fully-custodial method of alternative banking, thus allowing holders to store their assets securely on the EURST platform. The token also fulfills the vital role of a “safe-haven” asset, which can be traded, held or used as currency during times of market volatility and uncertainty.

EURST Business

Through EURST and its array of business services, users can use EURST tokens to facilitate global payments and remittances. With inherently low fees, instant settlement and borderless transfers available, using stablecoin services as a merchant or global business brings incredible advantages that aren’t often available through traditional payment providers.

The assets can be used to facilitate and settle global transactions instantly due to the 24/7 nature of the crypto industry. The decentralization and autonomy provided extend to payroll services, both of which can be executed and handled automatically through the advent of blockchains and smart contracts.

For global businesses, payroll can often be difficult due to the number of different currencies used and the many processes that accompany cross-border payroll. Using stablecoins ensures a streamlined, low-fee process through making payroll settlements truly borderless.

Being pegged to USD, EURST tokens can be freely transacted and traded via exchanges to other stable assets or converted into FIAT currencies with ease and removes the need for third-party providers.

EURST also offers fully-fledged escrow services that are handled automatically by smart contracts, which ensures they remain fully and publicly auditable. Escrow services work exceptionally well using stablecoins due to their consistent stability of pricing, which mitigates the risks posed when using legacy banking options. In more traditional markets, large escrow holdings can suffer significant losses from volatility.

Using EURST in your business operations provides greater control and visibility of your financial ecosystem, all whilst drastically reducing fees and timing on all transactions handled by your business.

How the EURST token works

The EURST token plays an imperious role within the EURST ecosystem and ensures that the platform operates as intended. Being a multi-use token, it’s important to understand how the token tackles key factors such as token issuance, transfer and redemption.

Token Issuance

When a user transfers funds via the platform, the funds are sent to a custodian. Upon confirmation that its custodian has received the funds, the issuer of the funds then creates and allocates an equivalent amount of EURstablecoin through a smart contract.

The funds are then simultaneously confirmed and audited by the platform, and once the conditions of the smart contract have been met, the funds are then received by the issuer.

Using this method ensures that the asset pool remains balanced and the correct amount is sent and received with every transaction.

Token redemption

The redemption method works inversely to token issuance. Once EURST tokens are sent to you, the custodial account instructs the issuer to redeem tokens, performs a real-time audit and then executes the transaction through the smart contract.

When redeeming tokens, the tokens removed from the custodial account are “burned” by the smart contract to remove them from circulation and are then redeemed via the issuer’s account. This ensures that the balance remains stable and that the token supply doesn’t become overinflated.

Transfers

Transfers through the EURST platform are handled directly by the smart contract, which both initiates and executes the transfer of funds for both parties.

Using all three methods ensures that the EURST platform can handle large amounts of transactions and remain fully transparent. EURST also effectively utilizes the full capabilities of blockchain technology to bring users unmatched speed and accessibility.

Conclusion

Through the combination of their expansive platform and the versatility of the token, EURST brings exceptional value to the stablecoin market. Their platform ensures faster speeds for various financial processes, eliminates the high fees associated with traditional financial operations and offers a truly decentralized, borderless service for global merchants and businesses.

Most importantly, in a time when stablecoin regulation is on the horizon, EURST provides full transparency of their assets and the reassurance that their pooled funds are fully backed and audited regularly. With trust in stable asset markets dwindling, the EURST platform brings much-needed stability and functionality to the ever-expanding cryptocurrency industry.

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