Decentralized Finance Lending Platform Euler Finance Introduces Hybrid Token Maxi

Euler Labs, the team behind the decentralized finance lending protocol on Ethereum, announced the development of a new hybrid token called Maxi on September 16. Maxi is designed to offer users greater capital efficiency and is a bespoke lending product specifically tailored for this purpose.

A Stablecoin Backed with a Range of Assets

Maxi is a stablecoin featuring a blend of assets and cross-collateralization to enhance both capital efficiency and risk mitigation. The assets backing Maxi include tokenized treasury bills, yield-bearing tokens, synthetic dollars, and fiat-backed stablecoins. Among these assets are Ondo Finance’s U.S. tokenized Treasury bill Ondo U.S. Dollar Yield (USDY) and Usual Money’s real-world asset-backed stablecoin USD0. Additionally, Ethena’s synthetic dollar USDe, yield-bearing synthetic dollars sUSDe and stUSD, and Circle’s globally-adopted stablecoin USDC are part of the mix.

Incentives for Users

Euler is launching an incentivization program that allows 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 as part of the program.

K3 Capital Among Firms Helping to Secure Maxi Vaults

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 to ensure maximum efficiency and safety, Euler Labs noted.

Past Security Incident

In March 2023, Euler Finance suffered a flash loan attack, resulting in the loss of $197 million worth of crypto assets, including Dai, wrapped Bitcoin (WBTC), Lido staked Ether (STETH), and USDC. However, the hacker returned most of the funds, with over $177 million recovered by early April 2023.

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