dEURO: Decentralised Euro Stablecoin

2026-07-09

Decentralized Euro (dEURO) is an EUR-pegged decentralised stablecoin and the successor to Frankencoin (ZCHF). It uses a collateralised minting model where anyone can propose new collateral types through a governance-controlled process. The design prioritises permissionlessness and censorship-resistance over capital efficiency, making it a credibly neutral EUR stablecoin rather than an issuer-controlled one.

Users lock collateral: ETH, liquid staking tokens, or other approved assets: in a minting position and borrow dEURO up to a governance-set loan-to-value ratio. Interest accrues on outstanding dEURO debt and flows to the protocol reserve. The reserve fund, called the Equity contract, absorbs liquidation losses and acts as a stability buffer. The peg is maintained through arbitrage: if dEURO trades above one euro, new positions are opened to mint and sell dEURO at a profit, expanding supply until the price normalises. Below one euro, existing dEURO is cheaper to buy back than the collateral it is worth, so holders repay positions and burn supply.

The adapter reads the dEURO ERC-20 totalSupply() on each supported chain and maps it to the EUR peg. An EUR/USD price feed is applied at each data point to convert the euro-pegged supply into USD-equivalent for standardised DefiLlama reporting. EUR-pegged stablecoins are underrepresented in DeFi coverage compared to USD stablecoins, and adding dEURO contributed to more complete non-USD stablecoin monitoring at a time when global DeFi adoption was expanding.

Twitter: @DecentralEuro