Gnosis DAO just made a big move in the DeFi space. On September 22, 2025, they announced via X (formerly Twitter) that GIP-135 has passed on Snapshot. This proposal is all about supporting the development of a new Euro-pegged stablecoin on the Gnosis Chain, and it's got some exciting implications for blockchain enthusiasts and DeFi users alike.

What is GIP-135 All About?

At its core, GIP-135 proposes that Gnosis DAO grants RaidGuild—a Web3 development collective—a $50,000 stipend. This funding isn't just a handout; it's specifically for covering the audit and legal costs of launching gEURO, a decentralized, collateralized debt position (CDP) stablecoin pegged to the Euro at €1.00. In exchange, Gnosis DAO gets 15% of any future governance tokens from the project, with vesting and lockup terms to be ironed out.

For those new to the terms: A CDP stablecoin lets users lock up collateral (like crypto assets) to borrow the stablecoin, which maintains its peg through mechanisms like over-collateralization and liquidations. gEURO builds on a fork of Liquity V2, a popular protocol for efficient, decentralized stablecoins. This setup makes gEURO yield-bearing, meaning holders can earn from borrowing fees—75% goes straight to them, while the rest is governed.

Key Features of gEURO

The proposal outlines some standout specs for gEURO:

• Collateral Options: Starts with sDAI (a yield-bearing DAI), wstETH (wrapped staked ETH), GNO (Gnosis's native token), osGNO (staked GNO), and WBTC (wrapped Bitcoin). More can be added after risk reviews.
• Yield and Fees: It's natively yield-bearing, with liquidation fees fully accruing to stability pool depositors. Users can choose their own interest rates on borrows.
• Redemption Mechanism: Always redeemable for €1.00 worth of collateral, prioritizing the lowest-rate vaults to keep things efficient.
• Gnosis-Specific Perks: Borrow against GNO while keeping your governance delegation active—a nice touch for GNO holders. Plus, it integrates with Gnosis Pay for euro settlements, real-world assets (RWAs), and even Circles for broader ecosystem use.

RaidGuild plans to roll this out in about three months, with milestones for testing, auditing, and mainnet launch. They're also seeking a non-binding liquidity commitment from Gnosis DAO, like $5 million at launch, to help bootstrap adoption and aim for $25 million in total value locked (TVL) within 18 months.

Why This Matters for DeFi and Beyond

The motivation here is clear: Euros are a massive part of global finance, but DeFi has been USD-heavy. With USD volatility, a reliable euro stablecoin could supercharge euro-centric apps, especially on Gnosis Chain, which is known for low fees and fast transactions. This isn't your typical custodial stablecoin—it's fully decentralized with on-chain collateral, setting it apart from options like EURe.

For Gnosis ecosystem players, this deepens GNO's utility. You can borrow against it without losing voting power, and it opens doors for RWA integrations, making real-world finance more accessible on-chain. RaidGuild, with their track record (they built the original OmniBridge for what became Gnosis Chain), is committed long-term, which adds credibility.

Of course, there are risks: smart contract bugs (mitigated by audits), peg stability (handled via redemptions and arbitrage), regulatory hurdles (early legal reviews), and adoption challenges (tackled with liquidity and partnerships). But overall, this feels like a strategic play to position Gnosis as a hub for euro DeFi.

Voting Results and Community Response

The vote on Snapshot ran from September 15 to 22, 2025, and achieved a whopping 148% quorum—way above what's needed, showing strong community support. While exact vote counts aren't detailed in the proposal page, the official Gnosis DAO post confirms it passed. A quick reply from @NoBanksNearby celebrated with "GIP-135 passed! Euro-peg next. 🚀" and a fun astronaut image, capturing the excitement.

Looking Ahead

This approval is a win for decentralized finance, potentially sparking more innovation in stablecoins beyond USD dominance. If you're into blockchain tech or eyeing euro-based DeFi opportunities, keep an eye on gEURO's launch. For more details, check out the full proposal on Snapshot or RaidGuild's litepaper.

Stay tuned to Meme Insider for more updates on how projects like this could influence the wild world of meme tokens and broader crypto ecosystems. Who knows—maybe gEURO inspires some euro-themed memes down the line!