EURL, the euro-linked stablecoin issued by French startup Lugh, can now be transferred from wallet to wallet. This was previously not possible. This announcement opens the way to new perspectives, but it might not be enough to ensure the future of the project.
Lugh’s stablecoin now transferable to external wallets
Lugh is a startup issuing EURL stablecoin backed by the euro. It was launched by the Casino Group in partnership with Coinhouse and Société Générale a year ago. Its purpose would be to be used in the loyalty programmes of the group’s brands, for example.
This stablecoin is fully collateralised on a one-to-one basis, with euro fiat in an account of the partner bank. It is audited monthly by KPMG and the reports are made public on the startup’s website.
Until now, the use of EURL was limited to buying and holding it on Coinhouse, but it is now possible to transfer it between different wallets.
How can EURL circulate from wallet to wallet?
➡️A thread
1/5– Lugh (@LughStablecoin) March 30, 2022
As Lugh explains in this Twitter thread, the company wanted to get its stablecoin in line with regulators, before giving it a concrete use case. That’s why it was limited to Coinhouse until now.
Beyond the transfer between wallets, this opens the way to the use of EURL in decentralised finance (DeFi) and its potential listing on different exchanges.
A step forward with some qualification
If this news seems promising at first glance, it should be qualified. Indeed, Lugh will have to face several challenges in order for his stablecoin to be used.
The first challenge is the choice of ecosystem: Tezos (XTZ). Ranked 38th among DeFi blockchains with a total locked-in value (TVL) of around $95 million, there is, so to speak, nothing happening on Tezos. A look at the EURL smart contract from a blockchain explorer confirms the trend.
Although the cryptocurrency world is sorely lacking in Euro-linked stablecoins, Lugh’s EURL will have to make its mark on the competition. Jarvis Network’s (JRT) technology, and by extension the jEUR, is for example much more advanced.
Although not widely used at the moment, its collateralisation mode allows an issue of 100 dollars with only 25 dollars in the liquidity pool, all without slippage. This flexibility is fundamentally not possible for the EURL.
As things stand, Lugh does not seem to have the arguments to convince DeFi users, it remains to be seen whether it will be different for the customers of the Casino group’s stores. We hope however that they will prove us wrong in the future, to perhaps bring a French project to the forefront
