We've received this question a couple of times already, and it seems like many of you are genuinely interested in it. So, there's nothing really extraordinary about this choice 🤩
We know about EURC (a euro stablecoin from Circle), but we don't want to rush to add it to 8lends.
💲 USDC market cap is $76.87B, the volume is $13.21B. This stablecoin has survived several bear markets, crises, regulatory scrutiny, and has been operational since 2018.
🪙 EURC market cap is $451.24M, the volume is $46.16M. This stablecoin is still young and was launched only in 2022.
Yes, we agree that EURC has been doing really well so far. But we work with real money – your money – so we prefer safe plays. When it comes to 8lends, there's no room for experiments.
❗️ "But wait a minute. I'm from Europe, and I want Euro!"
We understand that. But before we answer, let's take a look at other numbers:
USDC is pegged 1:1 to the dollar, right? The euro and dollar have historically traded in a range of 1.05–1.15. The EUR/USD pair has experienced volatility of approximately 7–8% over the past year.
With a 20% annual yield, currency risk exists, but it's not critical over a one-year horizon. The yield outweighs the exchange rate difference even in a bad case.
🤔 So, are we planning to add EURC later?
Not yet. We're watching EURC closely, and even some other euro stablecoins. But we're only thinking of actually adding them to the platform when they grow big enough and prove themselves as reliable as USDC.
So we chose USDC because it is the most reliable choice among all stablecoins so far.