Decentralized finance lending platform Euler Finance has introduced a new hybrid token called Maxi.
Euler Labs, the team behind the decentralized finance lending protocol on Ethereum (ETH), announced the development on Sept. 16. Maxi, as the platform explained in a post on X, is a bespoke lending product designed to offer its users greater capital efficiency.
A stablecoin backed with range of assets
Maxi is a stablecoin whose key features include a blend of assets and cross-collateralization for both capital efficiency and risk mitigation, Euler Finance posted.
In terms of the assets backing the new stablecoin, Euler revealed it includes tokenized treasury bills, yield-bearing tokens, synthetic dollars, and fiat-backed stablecoins. Specifically, Maxi launches with assets backing its value, including Ondo Finance’s (ONDO)’s U.S. tokenized Treasury bill Ondo U.S. Dollar Yield (USDY) and Usual Money’s real-world asset-backed stablecoin USD0.
The other assets are Ethena (ENA)’s synthetic dollar USDe and yield-bearing synthetic dollars sUSDe and stUSD. Circle’s globally-adopted stablecoin USDC (USDC) is another.
Incentives for users
Euler is launching an incentivization program allowing users to collateralize sUSDe and USDe to earn Ethena’s sats. Network participants can also lend or borrow with USD0 to receive Usual Money Pills, or stUSD to earn Angle Protocol’s native token ANGLE. Users who lend USDC will receive Euler XP.
K3 Capital among firms helping to secure Maxi vaults
According to Euler Labs, institutional asset manager K3 Capital, digital asset investment platform MEV Capital, and decentralized finance research provider Re7 Capital will actively manage Maxi’s vaults.
These firms will monitor and adjust the vault parameters where possible for maximum efficiency and safety, Euler Labs noted.
In March 2023, Euler Finance suffered a flash loan attack, with the exploit leading to the loss of $197 million worth of crypto assets at the time.Stolen assets included Dai (DAI) wrapped Bitcoin (WBTC), Lido staked Ether (stETH) and USDC.
The hacker however returned most of the funds, with a total of over $177 million recovered by early April 2023.