Make EUT usable

Disclaimer: I am from Europe, so I may be biased.

The Terra team did a wonderful job with UST and bringing it to the masses.
So I strongly believe that we should focus on bringing EUT to the masses.

Why EUT?

i. The Euro is the second biggest Fiat-Currency after the Dollar.

ii. Euro isn’t used in DeFi at all, so we naturally have a potentially huge addressable market.

iii. One could argue that UST and KWT are the only stables with utility at Terra. While only having two
widely used stables, we are burning up to 2 mil. Luna per day.
Now imagine if we add a third stablecoin.

Government Proposal
So how exactly should we reach that goal?

I am asking for 50 mil. UST worth of Luna (44.13 mil. EUT - at current exchange rates) in total by the treasury.
22.065 mil. EUT (50%) in Luna would be burned for EUT.

Bootstrap and Create LP-Pools at the following DEXs:

47% of the funds should go to Astroport.

   -10% of Astroport funds will be used to buy $ASTRO on the open market (either with luna or UST).
    The bought $ASTRO will then be paired up with $EUT, resulting in a 20-80 split.
  So in the end 20% of the funds will be used for $ASTRO-$EUT
  and 80% will be used for $LUNA-$EUT

18% of the funds should go to TerraSwap.

35% of the funds should go to Osmo.

    -50% of Osmo funds will be used for $LUNA-$EUT
    -30% of Osmo funds will be used for $OSMO-$EUT
     using similiar steps like at Astroport.
    -20% of Osmo funds will be used for liquidity-mining incentives.

How long should TFL LP?
TFL should provide liquidity for 6 months at each DEX.
After those initial 6 months there will be a vesting period of unlocking LP.

TFL is only providing liquidity at the beginning so that larger sums could be traded without slippage, after the finished unlock period retail farmers will earn the full rewards of the LPs.
What happens to the LP-rewards?

LP-reward and LP-vesting funds from Terraswap should be used for staking rewards.
Those staking rewards will have a schedule of 8 months. Similar to the staking reward mechanism we already have.

The generated rewards from the Astroport LP should be distributed to $LUNA-$EUT and $ASTRO-$EUT LP-providers.

The DAO authorizes TFL to decide wether to sell half of it for $EUT and provide liquidity, or 100% sell it over a 5 month linear period, or stake it.

The locked liquidity should be unlocked at 10% in the first month.
Every month TFL should unlock 5% more of the position.
After the 15th month the DAO authorizes TFL to unlock the remaining LP or remain as a liquidity provider.

For anyone asking, this results in 0.326% of the initial liquidity, so the retail farmer should not be harmed.

here is a graph:

Note that the graph has 16 months as a time frame, this is because the first month in the graph is the 5th month in the locked phase.

Thanks for reading, if you have any questions, please do so in the comments. Also please let me know if this is a good idea.
Have a great rest of your morning/ day/ night!

1 Like

Splitting of liquidity into other forms of stables intentionally may not build the demand organically. Perhaps you can check out Vertex Protocol instead. They’re looking to create EUT, GBT-denominated swaps into Terra whilst keeping the liquidity deep with UST.


hmm you’re probably right, splitting liquidity would only create demand if there is enough incentive, which is not sustainable at all. :+1:

One thing’s for sure. I don’t see why it should be only UST that is getting all the hype. I for one would like to earn 19 % on Anchor on my EUT, if any.


As a European I fully support this idea! I was wondering when EUT will be introduced in different protocols. There is a huge market waiting.


Also we could have a first mover advantage as no one has a widely used euro stablecoin AFAIK.

Imagine if we could have 19.5% interest with aEUT, or buy stocks with euros.


Building up more usage around EUT and other stablecoins within Terra would be awesome. But creating liquidity pool incentives with it won’t create actual usage.

What would be more useful is if protocols like Mirror, Anchor, etc. start giving users the option to deposit other tokens besides UST.
I would love to have a Gold terra token that earns steady yield in Anchor for instance…


For this to happen you would need the ability to swap from EUT to Luna etc.
Thus why we should start with liquidity and then start with gov. proposals on anchor and mirror and so on. :slight_smile: