peg-eUSD PEUSD

Peg-eUSD refers to the stable value of eUSD, which is a decentralized, interest-bearing stablecoin. The protocol aims to maintain the peg of eUSD to the value of 1 USD. The stability is ensured through various mechanisms such as the Stability Fund, which strategically reserves a portion of eUSD to maintain the peg, especially when eUSD is trading above its peg. Additionally, the introduction of the Premium Suppression Mechanism and the eUSD/3CRV pool further contribute to keeping the value of 1 eUSD close to 1 USD.

Peg-eUSD is unique compared to other cryptocurrencies because it offers two important features: security and stability, and interest-bearing capabilities. The stability of eUSD is maintained through a combination of overcollateralization, liquidation mechanisms, arbitrage opportunities, and a premium suppression mechanism. This ensures that the value of eUSD remains close to its peg of 1 USD. Additionally, users can earn interest on their stablecoin holdings while freely deploying them in yield-bearing applications on various DeFi protocols. This combination of stability and interest-bearing functionality sets peg-eUSD apart from other cryptocurrencies. Furthermore, the protocol has a reserved Fund Stability mechanism that helps maintain the peg of eUSD, contributing to the overall stability and robustness of the Lybra protocol.