STASIS EURO Demystified

A Detailed Response to EURS Risk Assessment Points

The importance of transparency in the crypto industry is crucial. This topic has been highlighted many times over the last year. With the ongoing collapse of once well-trusted digital asset solutions, many users lost money and confidence in stablecoin harbors. In such circumstances, users tend to get suspicious regarding any new upcoming project or even some battle-tested solutions.

We decided to take another step forward and explain to our clientele how each part of the equation works to avoid any doubts, misleadings, or delusions that might be found regarding STASIS EURO in the constantly growing crypto realm, oversaturated with deceiving information and questionable research of all sorts.

In this article, we will address the main points highlighted by the LlamaRisk research team in their latest risk assessment: the EURS regulatory approach, reassurance of EURS reserves, as well as existing security and governance structure.

EURS is still number one

Our clients and subscribers know that EURS is a blue-ribbon asset among stablecoins, originated in the heart of EU fintech production — Malta. STASIS-issued euro stablecoin was designed so that even in the worst-case scenario, holders get 99.99%. Over time, STASIS has become one of the largest non-USD stablecoin issuers, with EURS products reaching a whopping $6B+ of transferred value to date. STASIS is the only company with absolutely no conflicts of interest.

Moreover, STASIS is:

1. The first and only company audited by a top5 global accounting firm since 2018;

2. First and only company that published daily statements, thus setting the standard for transparency to follow;

3. The only stablecoin project that has never had a conflict of interest with its token holders.

4. The first to get a Proof-of-reserves Chainlink feed.

Now, let’s approach the most critical parts of the research.

• Regulatory capital

We were the first to truly operate according to the future European regulatory regime (MiCA) and have never been exposed to the leverage risks s Silvergate, or Silicon Valley Bank did. We have never dealt with non-transparent and over-credited counterparties, and lending book risk problems are not actual for us.

We pioneered transparency standards for stablecoin by inviting BDO as the verifier and auditor and providing daily statements by financial institutions. Our internal compliance team provides regular risk assessments of clients, partners, and counterparties. Our goal is to bring high-quality counterparties which allow for mitigating cash-holding risks. A good example is NexPay, which allows holding reserves with the Central Bank of Lithuania.

EURS team submitted a registration application to the Malta Financial Services Authority (MFSA) to become registered as a Virtual Financial Asset Token Issuer in line with the current Maltese Virtual Financial Asset Framework. Contrary to what Llama’s study claims, this information can be easily verified.

Once MICA enters into force (vote projected to take place in April 2023), the Issuer board will submit an Electronic Money Token License application with the MFSA in line with MICA regulatory regime to be licensed and supervised under the new regulatory regime.

• Liquidity

The Llama research does not mention that Stasis invited the Llama independent research group to sign an NDA so that we could comfortably share sensitive information, clarify the moot points and prove the sustainability of the EURS setup. However, they refused, thus being unable to receive proper assistance and the most accurate data from our side — which clearly means that the ultimate goal of this ploy might not be to provide truth but simply spread the FUD.

During a favorable interest rate macro environment, STASIS sticks to a 100% liquid euro policy.

The macro market fluctuated slightly, and there was a period where the macro interest rate environment was destructive to the stablecoin products. During the time, investing in high-quality, low-risk bonds was the way to avoid negative rates while reducing the risk of holding cash in commercial banks since banking institutions are riskier.

No one can predict the interest rate environment, but one can adequately manage risk from a period of low-interest rates to a period of negative rates and so on. No other stablecoin issuer has successfully navigated this environment, but the STASIS approach has demonstrated that our team is the best at managing collateral risk.

We have successfully weathered periods of falling, negative, easy rising, and strong rising rates and held up to 70% of the cash. Our approach to bond allocation, which was liquid with the lowest credit risk possible, has played out spectacularly well.

EURS is now 100% backed by cash euro, and any speculation about a liquidity crunch is unsustainable.

• Governance and security

It’s an official fact that EURS is not controlled via decentralized governance. Instead, the token and treasury contracts are controlled by individuals interested in STASIS’s present and future success as a product. They use multi-sig wallets, the benchmark-security standard applications.

There is no denying that the cryptocurrency realm is full of dangers of all sorts. Therefore, revealing the personal data of the mulitsig holders would undoubtedly put their security in question, considering the responsibility.

While some might say that centralization might be a burden, we can always recollect the downfall of algorithmic stablecoins demonstrated last year. The advantage is that a centralized stablecoin can provide greater control and oversight over the issuance and management of the currency, thus increasing confidence in its stability and reliability.

During the 5 years of stablecoin operations, the company settled over 1 billion worth of euros off-chain and 6 billion on-chain while having zero problems with security. STASIS has never lost a euro while facilitating these complex operations. While other stablecoins experienced hacks, EURS was safe and sound throughout the lifecycle, thanks to its robust smart contracts, frequent audits, and constant monitoring.

We are always open to your feedback

STASIS team hopes that such detailed explanations and insights will reassure our global clientele of the continued transparency of our operations and dissolve any concerns regarding the past, present, or future of STASIS EURO.

Having carefully read this article, we’re sure that users will have no doubts regarding any point and realize that there are no critical risks present in EURS model, team, or STASIS as a company. There should be no doubts about the sustainability of Stasis’ setup in the long run, considering how vocal our team has been regarding all the operations. The company’s current structure fully complies with applicable laws, despite a rapidly changing regulatory environment and any upcoming enforcement.

We invite everyone to open dialogue and will happily respond to any constructive questions on our social media or via email — feel free to drop your questions to pr@stasis net or reach out to Twitter or Telegram.

Your STASIS Team

STASIS was started by a group of entrepreneurs who have been active in fintech since 2011 and for over 15 years in the alternative investment sector. Right now, the STASIS team is 30 people strong. We have diverse experience and a proven track record in alternative investment, algorithmic trading, blockchain, software development, security, and law.

STASIS Team fully supports the Web3 values, comprises different races & nationalities, and is spread across different regions worldwide. Connecting traditional finance with the new digital economy requires a synergy of interdisciplinary expertise. Our team is a rare example of synergy crucial to navigating digital asset space and building a tokenization platform.