What is eUSD?

Eternal Network is in the process of developing its own stablecoin, eUSD, to serve as an independent means of payment within the system. Currently, the development of eUSD is underway, with its full implementation anticipated in the near future. Eternal’s cross-collateralization features will still allow for collateral to be placed in various tokens from other networks. However, using a proprietary stablecoin will ensure that PnL settlements between parties occur in a neutral token, which is currently under development.

At this stage, eUSD will initially be a wrapped USDC, connected to the Eternal Network. All USDC amounts will be automatically wrapped into eUSD before being used as collateral on margin accounts. Any eUSD can be unwrapped for withdrawal at any time, as long as the amount is not locked for margin requirements.

However, this is just a temporary step in the development process, and the eUSD mechanism is an integral part of Eternal Network’s future plans. Specifically, the eUSD contract may be upgraded to provide:

Intrinsic Yield: As a core component of eUSD’s design, it is planned to leverage both the design mechanism and integration within Eternal Network to provide intrinsic yield for eUSD. This will make it not only a neutral means of settling derivatives but also a viable savings instrument within the system.

Synergy with the Protocol Layer: Eternal Network is being developed with a holistic approach, where components of the protocol layer reinforce and support each other. Ultimately, eUSD will become the first stablecoin deeply embedded into the trading system. An example of such integration is the clearing module, which will allow for settlement payments within the derivatives clearing module, temporarily extending the issuance of stablecoins and removing the logistics of automatic exchange.

Universal Currency Mode for Eternal Network: Upon completion, eUSD is planned to be used as the universal currency within Eternal Network. Specifically, all fees in Eternal will be charged in eUSD. Additionally, insurance funds, any underwriting, and staking reserves will be denominated in eUSD.

While Eternal Network welcomes the development of new stablecoins within its ecosystem, eUSD will play a prominent role. The governance layer will utilize eUSD to support the system. Ultimately, eUSD will be the first stablecoin deeply integrated into a comprehensive financial system with its own L2. This means that there are built-in incentives to hold eUSD through trading and investment opportunities.