DeFi protocol Euler Finance announces launch of new stablecoin Maxi

Decentralized financial lending platform Euler Finance has introduced a new hybrid token called Maxi.

Euler Labs, the team behind the decentralized finance lending protocol on Ethereum (ETH), announced the development on September 16. As the platform explained in a post on X, Maxi is a specialized lending product designed to offer greater capital efficiency to its users.

A stablecoin backed by various assets

Euler Finance noted that Maxi is a stablecoin with key features that include a mix of asset and cross-collateralization for both capital efficiency and risk reduction.

In terms of assets backing the new stablecoin, Euler explained that it includes tokenized treasury bonds, yield-bearing tokens, synthetic dollars, and fiat-backed stablecoins. Specifically, Maxi is launching with assets backing its value, including Ondo Finance’s (ONDO) U.S. tokenized treasury bond Ondo US Dollar Yield (USDY) and Usual Money’s real-world asset-backed stablecoin USD0.

Other assets include Ethena’s (ENA) synthetic dollar USDe and its yielding synthetic dollars sUSDe and stUSD. Circle’s globally adopted stablecoin USDC (USDC) is another.

Incentives for users

Euler is launching an incentive program that allows users to collateralize sUSDe and USDe to earn Ethena’s sats. Network participants can also lend or borrow USD0 to buy Regular Coins or use stUSD to earn Angle Protocol’s native token, ANGLE. Users who lend USDC will earn Euler XP.

K3 Capital is among the companies that help ensure the security of Maxi cases

According to Euler Labs, institutional asset manager K3 Capital, digital asset investment platform MEV Capital and decentralized finance research provider Re7 Capital will actively manage Maxi’s coffers.

These firms will monitor and adjust chassis parameters wherever possible for maximum efficiency and safety, Euler Labs said.

In March 2023, Euler Finance suffered a flash loan attack that resulted in the loss of $197 million worth of crypto assets at the time. The stolen assets included Dai (DAI), wrapped Bitcoin (WBTC), Lido-staking Ether (stETH), and USDC.

But the hacker returned most of the money, and by early April 2023, more than $177 million in total had been recovered.