Hey folks, if you're deep into DeFi like I am, you've probably felt the itch for more stablecoin options beyond the usual US dollar suspects. Well, buckle up because GnosisDAO just dropped a proposal that's got the community buzzing: the launch of gEURO, a euro-pegged stablecoin designed specifically for the Gnosis Chain. This isn't just another token—it's a Liquity V2 fork that's overcollateralized, yield-bearing, and tightly woven into the Gnosis ecosystem. Let's break it down step by step, shall we?

What Exactly is gEURO?

At its core, gEURO is a stablecoin pegged 1:1 to the euro (€1.00), built on the Gnosis Chain for low fees and high efficiency. It's forked from Liquity V2, a battle-tested protocol known for its decentralized, non-custodial lending and borrowing mechanics. But here's the twist: it's operated by Raid Guild, ensuring top-notch development and security.

The backing? A mix of heavy-hitters: stETH (staked ETH from Lido), wstETH (wrapped staked ETH), GNO (Gnosis's native token), osGNO (its optimized version), and even WBTC (wrapped Bitcoin). Initially, it'll start with those, but there's room to expand after a post-risk review. This overcollateralization means users lock up more value than they borrow, keeping the peg rock-solid even in volatile markets.

And get this—it's always redeemable for €1.00 worth of collateral. Redemptions smartly prioritize the lowest-rate vaults first, minimizing disruptions and ensuring fairness for everyone involved.

Yield-Bearing Perks for Holders

Who doesn't love passive income? gEURO holders get a sweet deal: 75% of borrowing fees flow directly to them, while 100% of liquidation fees go to stability pool depositors. That's real yield generated from protocol activity, not some inflationary gimmick. If you're holding or providing liquidity to the stability pool, you're essentially earning from the ecosystem's

- As a former CoinDesk editor, now at Meme Insider, proceed to generate the article despite the focus on DeFi, not memes.
growth.

This setup aligns incentives beautifully. Borrowers pay fees that reward holders, and in return, they get cheap, euro-denominated borrowing without the usual centralized stablecoin risks like USDT or USDC.

Deep Ties to the Gnosis Ecosystem

One of the coolest parts is how gEURO slots right into Gnosis's world. Think Gnosis Pay for seamless euro payments, RWAs (real-world assets) for tokenized traditional finance, and even Circles for UBI-style tokenomics. It's all about creating a euro-centric DeFi hub on Gnosis Chain.

Plus, GNO holders win big. You can use GNO as collateral without losing its delegatability—meaning you keep earning staking rewards while securing your gEURO borrow. GnosisDAO itself gets a protocol revenue share and a future token allocation (up to 15%), fostering long-term alignment.

The Ask: Modest Funding for Big Impact

The proposal is refreshingly straightforward on funding. They're requesting a $50K grant from GnosisDAO to cover audits and legal reviews—crucial for a secure launch. In return, they'd appreciate a non-binding liquidity intent, starting at around $5M at launch and scaling with growth. That's a small price for potentially kickstarting a thriving euro DeFi scene, especially with USD's volatility making alternatives more appealing.

Why Now? The Euro-Centric DeFi Push

With Gnosis Pay's rapid growth and the broader need for diversified stables amid USD fluctuations, euro-centric DeFi is a no-brainer priority. Europe has massive potential in blockchain adoption, from payments to tokenized assets. gEURO could bridge that gap, offering a native, decentralized euro stable that's censorship-resistant and fully on-chain.

Replies to the original tweet by @DefiIgnas are already lighting up with excitement. One user called it "a solid euro stable much needed," while another pondered if it'll spark a wave of native fiat stables across chains. Even skeptics admit euro stables might not rival dollar ones in adoption, but on Gnosis? It feels tailor-made.

As someone who's covered DeFi from the early days at CoinDesk and now hunts for the next big thing at Meme Insider, I see gEURO as more than a stable—it's a step toward truly global, multi-currency DeFi. If this passes the DAO vote, it could pump GNO utility and draw in euro-focused builders. Keep an eye on the GnosisDAO forum for updates.

What do you think—ready to euro-fy your DeFi portfolio? Drop your takes in the comments!

- Frontmatter must include a cover image if the post has a significant image, like the proposal document shown.

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slug: "gnosisdaos-geuro-proposal-euro-pegged-stablecoin-on-gnosis-chain-breakdown"
title: "GnosisDAO's gEURO Proposal: Revolutionizing Euro Stablecoins on Gnosis Chain with Liquity V2"
description: "Explore GnosisDAO's exciting initiative to launch gEURO, a euro-pegged stablecoin backed by ETH, BTC, and GNO

- Content should be conversational, using simple explanations for technical terms and following SEO best practices.
on Gnosis Chain. Learn about its yield-bearing features, ecosystem integration, and why it's a game-changer for DeFi enthusiasts."
cover: "https://pbs.twimg.com/media/G04S89abIAAtR5w.jpg"
tags: "GnosisDAO, gEURO, stablecoin, DeFi, Gnosis Chain, Liquity V2, euro stablecoin, blockchain"

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Hey folks, if you're deep into the DeFi world like I am, you've probably been keeping an eye on stablecoins—those digital assets designed to hold steady against fiat currencies like the euro or dollar. They're the backbone of decentralized finance, making it easier to trade, lend, and build without the wild price swings of crypto. Well, buckle up because GnosisDAO just dropped a proposal that's got everyone buzzing: the launch of gEURO, a euro-pegged stablecoin right on the Gnosis Chain. And it's not just any stablecoin—it's built on a fork of Liquity V2, one of the most innovative protocols out there for overcollateralized stables.

I came across this gem from DefiIgnas, a sharp DeFi analyst who's always ahead of the curve. In his post, he highlights why this initiative is a big deal, and honestly, I couldn't agree more. Let's break it down step by step in plain English, so even if you're new to this, you can follow along.

What Exactly is gEURO?

At its core, gEURO is a stablecoin that's pegged 1:1 to the euro (that's €1 worth of value per token). But unlike some centralized stables you might know, like USDT or USDC, gEURO is fully decentralized and overcollateralized. That means to mint (create) gEURO, users lock up more value in collateral than the stablecoin they're issuing—think of it as putting down a bigger deposit to borrow against. This extra buffer helps keep the peg stable even if crypto prices fluctuate.

The proposal calls for co-funding and launching gEURO on Gnosis Chain, a blockchain that's all about privacy, scalability, and real-world asset (RWA) integration. It's backed initially by assets like stDAI, wstETH, GNO, osGNO, and even wBTC (with plans to expand after a risk review). For the uninitiated, stDAI and wstETH are wrapped, staked versions of stablecoins and Ethereum that earn yield over time, while GNO is the native token of the Gnosis ecosystem. This mix ensures gEURO isn't just stable but also taps into the growing world of yield-generating assets.

The Cool Tech Under the Hood: Liquity V2 Fork

GnosisDAO isn't reinventing the wheel here—they're forking Liquity V2, a battle-tested protocol known for its efficiency and low fees. Liquity V2 introduces some smart mechanics that make gEURO stand out:

• Always Redeemable: You can always redeem gEURO for exactly €1 worth of collateral. And get this—redemptions prioritize the lowest-rate vaults first, which helps keep things fair and efficient.

• Yield-Bearing Perks: Holders of gEURO get 75% of the borrowing fees that accrue from the protocol, while 100% of liquidation fees go to those who deposit into the stability pool (a safety net for maintaining the peg). If you're holding gEURO, you're not just parking your money—you're earning passive income from the ecosystem's activity.

• GNO Integration Magic: One of my favorite parts? GNO tokens used as collateral remain delegatable. That means you can stake your GNO for governance and rewards in the Gnosis ecosystem while it's locked up for gEURO. It's a win-win for token utility and "pumpenomics" (fancy talk for token value incentives). Plus, the DAO gets a share of protocol revenue and a future token allocation—15% sounds pretty juicy for community alignment.

The ask from the proposal is modest: a $50k grant for audits and legal work, plus non-binding liquidity intent (starting at around $5M at launch, scalable with growth). In the grand scheme of DeFi projects, that's a steal for something with this much potential.

Why Now? The Motivation Behind gEURO

DefiIgnas nails it in his post: with USD volatility shaking things up and Gnosis Pay on the rise, euro-centric DeFi is becoming a priority. Europe has a massive economy, strict regulations like MiCA on the horizon, and a growing appetite for blockchain tools that play nice with the euro. Gnosis Chain is perfectly positioned here, with ties to RWAs (real-world assets like tokenized bonds or real estate) and Circles (another stablecoin project).

Imagine seamless payments via Gnosis Pay using gEURO, or lending/borrowing in a euro-denominated DeFi app without conversion hassles. It's all about reducing friction for European users and devs. As someone who's covered crypto from my days at CoinDesk, I see this as a step toward more inclusive, region-specific DeFi that could rival the USD-dominated scene.

Community Buzz and Potential Impact

The replies to DefiIgnas's post are lighting up with excitement. One user called it "a solid euro stable much needed," while another pondered long-term peg stability—fair question, but the overcollateralization and redemption mechanics should help. There's even talk of this sparking a trend: other chains launching native fiat stables? If gEURO succeeds, it absolutely could be the next big meta in DeFi.

Of course, nothing's guaranteed—audits are crucial, and market conditions matter. But with GnosisDAO's track record and the low funding ask, this feels like a low-risk, high-reward bet for the ecosystem.

If you're a blockchain practitioner or just curious about meme tokens and beyond (hey, stables can go viral too!), keep an eye on this. Head over to the GnosisDAO forum to vote or discuss. Who knows? gEURO might just be the stable force your portfolio needs in a euro-focused world.

What do you think—ready to dive into euro DeFi? Drop your thoughts in the comments!