STASIS reveals a plan to improve EURS stablecoin transparency
- EURS stablecoin issuer, STASIS, created a plan on how to boost the coin's reliability.
- Its goal is to use Chainlink's Proof of Reserve system to prove that every coin is backed by 1 EUR.
- The EUR supply from STASIS' accounts will be delivered to the chain and compared to EURS supply.
Stablecoin platform STASIS came up with the idea of how to increase the transparency of the EURS stablecoin, its flagship product. According to recent information, the platform plans to use Chainlink’s (LINK) Proof of Reserve to achieve its goal.
STASIS to increase EURS transparency via Chainlink’s PoR
EURS is the world’s largest Euro-backed digital asset. However, in order to receive automated on-demand audits on-chain, and prove that there are enough EUR reserves to back the stablecoin, STASIS will have to integrate with Chainlink — the world’s largest decentralized oracle network.
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As a coin, EURS is not unlike any dollar-pegged stablecoin. Every unit is backed 1:1 by EUR, which is being stored in STASIS’ reserves at various financial institutions with which the company has partnered with.
One thing that makes it different, however, is that it is the first stablecoin that has brought delegated payments on Ethereum. In other words, it is the first stablecoin that doesn’t demand that users pay gas fees just to make transactions. Instead, users are free to pay fees in any digital asset supported by STASIS wallet, or even in EURS itself.
How will the system work?
The plan is to use Chainlink oracles to check the off-chain reserves of EUR and compare it to the on-chain EURS supply. The checks will be made regularly, once every 10 minutes. There is a defined threshold of 1%, and if the deviation greater than that is ever spotted, the oracles will be instructed to push a new on-chain update to the EURS reference contracts.
The PoR system will retrieve data from independent, respected auditors who will be in charge of monitoring STASIS-owned accounts and their financial state. This data will then be transferred on-chain by LINK itself.
With the data delivered to the blockchain, it will be available for any dApp, or even to off-chain systems that might need to check EURS collateralization before executing any actions regarding the coin. In the end, the reliability of the stablecoin will be a lot greater, and fully transparent.