Euler Finance, the decentralized finance (DeFi) lending protocol built on Ethereum, has unveiled its latest innovation: a hybrid token called Maxi. Announced on September 16 by Euler Labs, the team behind the protocol, Maxi represents a significant step forward in the realm of stablecoins. This new offering is designed as a bespoke lending product, aiming to provide users with enhanced capital efficiency while maintaining a strong focus on risk mitigation.
What sets Maxi apart is its unique backing structure, which includes a diverse range of assets. The stablecoin is supported by tokenized treasury bills, yield-bearing tokens, synthetic dollars, and fiat-backed stablecoins. Specifically, Maxi launches with backing from assets such as Ondo Finance’s U.S. tokenized Treasury bill (USDY), Usual Money’s real-world asset-backed stablecoin USD0, Ethena’s synthetic dollar USDe and yield-bearing synthetic dollars sUSDe and stUSD, as well as Circle’s widely-adopted USDC. This multi-asset backing strategy aims to provide stability and liquidity while potentially offering users exposure to a variety of yield-generating opportunities.
To encourage adoption and participation, Euler Finance has introduced an incentivization program alongside Maxi’s launch. Users can engage with the platform in various ways to earn rewards. For instance, collateralizing sUSDe and USDe allows users to earn Ethena’s sats, while lending or borrowing with USD0 rewards users with Usual Money Pills. Additionally, those who lend USDC will receive Euler XP, further incentivizing platform engagement and liquidity provision.
Euler Labs has also partnered with several institutional players to ensure the security and efficiency of Maxi’s vaults. K3 Capital, MEV Capital, and Re7 Capital will actively manage and monitor the vault parameters, adjusting them as necessary to maintain optimal safety and efficiency. This institutional involvement adds an extra layer of security to the protocol, which is particularly significant given Euler Finance’s history. In March 2023, the platform suffered a flash loan attack resulting in a $197 million loss, though most of the funds were subsequently recovered. The launch of Maxi, with its robust backing and management structure, signals Euler Finance’s commitment to innovation and security in the evolving DeFi landscape.
