Stasis

  • Cryptoasset Report
  • February 1, 2019

Stasis issues and redeems the EURS, an ERC-20 stablecoin pegged 1:1 with the Euro.

Overview

EURS is a stablecoin issued as an ERC-20 token on the Ethereum blockchain and pegged 1:1 with the Euro. Stasis issues and redeems the EURS, holds the collateralized assets, and provides token holders and the general public proof-of-solvency through regular, publicly released, third-party audits of its holdings. Based in Malta, Stasis has influenced the country’s approach to regulating cryptocurrency—Stasis’ founder and CEO Gregory Klumov collaborated with Maltese Prime Minister Joseph Muscat on the country’s legal framework for digital assets.

By pegging to the euro instead of the dollar, Stasis seeks to distinguish itself amongst otherwise similar stablecoin issuers. Entering and exiting positions in the cryptocurrency market is stablecoins’ primary use, in Stasis’ view, and pegging to the euro simplifies the process of measuring and reporting cryptocurrency gains or losses in parts of the world where taxes are in euros, not dollars. The project also sees a euro-pegged stablecoin as contributing to a more widespread adoption of cryptocurrencies in general.

Project Details

Asset-backed stablecoins typically rely on a combination of cryptographic proof and regulatory oversight to reduce counterparty risks. Issuing platforms can vary by how much evidence they provide for the actual balance of stablecoins to held collateralized assets, what oversight exists for users seeking to redeem underlying assets, what legal recourse is available in contexts of insolvency, and such respects.

Stasis’ solvency—its ability to meet its financial obligations as a stablecoin redeemer—is evidenced by publicly accessible, immutable records of token supply, available through the underlying Ethereum blockchain, and by first and third-party reports on Stasis’ euro holdings. Stasis’ reserves, held by STSS Malta Limited, are audited quarterly by BDO Malta, a Service Provider for System and Compliance Audits approved by the Malta Gaming Authority. BDO Malta also offers weekly verifications of STASIS reserve holdings, and Stasis itself issues daily statements. By comparing such records of token supply and held assets, interested parties can verify Stasis’ solvency.

Asset Details

Stasis’ token, the EURS, is an ERC-20 token issued on the Ethereum blockchain designed to retain 1:1 parity with the Euro. The total supply varies over time as users deposit Euros and are issued EURS, or redeem EURS for Euros. Stablecoins, like EURS, are anticipated to bridge gaps between cryptocurrencies and fiat. Stablecoin’s stability, in comparison to many cryptocurrencies’ volatility, makes them preferable to many users as a medium of exchange. In turn, compared to fiat, stablecoins are preferable in respects for entering or exiting cryptocurrency positions, with transfers being available during all hours. The emergence of effective, trustworthy stablecoins is also expected to benefit many core elements of the overall distributed ecosystem: prediction markets, lending facilities, and insurance vehicles, in addition to a variety of other dApps.