THE EGORAS DOLLAR (EUSD)
The EUSD Stable coin is a decentralized, collateral-backed cryptocurrency pegged to United States Dollar. EUSD is built on Ethereum blockchain and can be held on any Ethereum wallet. It can be spent the way the U.S. Dollar is spent.
Microfinance banks and NGOs generate EUSD by posting a loan backed by collateral assets into the Egoras microfinance protocol and EGR holders approve or decline the loan request. The loan request approved creates EUSD which the microfinance banks sends directly to the borrowers. Users can also buy EUSD from exchanges, or simply receive it as a means of payment.
Every EUSD in circulation is over-collateralised, meaning that the value of the collateral is higher than the value of the EUSD debt, and all EUSD transactions are publicly viewable on the Ethereum blockchain.
- 1.Store of value: Stablecoins keep or preserve values over a long period because of the lower associated volatility levels. EUSD is a store of value, so it is designed to preserves value for a long period of time.
- 2.The Medium of Exchange: Stablecoins enable further adoption of cryptocurrencies by the local businesses while minimizing the risks related to their volatility. It encourages the exchange of goods for cryptocurrency. EUSD will be used by small business in exchange for goods and services.
- 3.Unit of Account: Pricing in EUSD is possible with the pegging mechanism. Currently, EUSD is not an independent unit of account over time across the globe. EUSD is currently pegged to 1 USD (1 EUSD =1 USD). Though EUSD is not used as a standard measurement of value in the off-chain world, it functions as a unit of account within the Egoras microfinance protocol.
- 4.Lending: EUSD can be used to settle the debt in Egoras microfinance protocol. (e.g., Microfinance Banks, NGOs or Egoras lending partners pays back debt and interest with EUSD on Egoras microfinance protocol).
- 1.Create Partnership Request: Any legally registered microfinance bank or NGOs can create a partnership request on Egoras microfinance protocol by filling the partnership form with all the detailed information about the organization.
- 2.Get approved/declined by EGR holders: Egoras token (EGR) holders curate the request of microfinance banks, NGOs or Money Lenders to become a lending partner, they decide if they will either approve or decline the request from the organizations.
- 3.Post your loan request: Approved microfinance banks or NGOs can post loan request to Egoras microfinance protocol and get EGR holders either approve or decline the loans. If the loans are approved, then the organization receives EUSD in their approved organizational wallets.
- 4.Pay Back the Debt: The microfinance banks or NGOs must pay down or completely pay back the EUSD she generated, plus the interest fee that continuously accrues on the outstanding debt.
- 1.Validate Microfinance bank partnership request: Approve/decline partnership request of microfinance banks, NGOs or organizations with money lenders license. Read through the documents provided by these organizations before approving or declining the requests.
- 2.Validate the Loan request: Read through the loan request by these organizations; ask the lending team questions in order to get to know the borrower before approving/declining the loan request.
- 3.Claim your rewards: Claim your rewardsBlock rewards created through inflationary monetary policy and interest accrued from debt from businesses holding EUSD.