New Euro Stablecoin Goes Live on Cake Wallet
Cake Wallet has introduced support for dEURO, a decentralized euro-backed stablecoin that uses cryptocurrencies like Bitcoin, Ethereum, and Monero as collateral.
This addition allows users to mint euro-pegged tokens without selling their holdings, while maintaining full control over their assets.
The dEURO model relies on overcollateralization—requiring users to lock in more crypto than they borrow—which provides a layer of stability and resistance to price swings. If collateral levels fall too low, the system triggers automatic liquidations to protect the peg.
Users can earn up to 10% yield from the collateral pool, which is funded by stability fees from dEURO minters. These earnings don’t require giving up custody, aligning with the decentralized ethos.
However, the broader history of decentralized and algorithmic stablecoins raises caution. While dEURO uses real collateral, past failures like Terra’s UST—which collapsed in 2022 due to its unbacked mint-and-burn mechanism—have shown the risks of de-pegging and overreliance on incentives.
Even stablecoins with robust collateral, such as DAI, haven’t been immune to instability. A brief de-pegging in 2023 highlighted the knock-on effects when collateral sources falter.
Despite these challenges, Cake Wallet’s integration of dEURO marks another step in building alternatives to U.S.-dollar-dominated stablecoins, especially in the European digital asset ecosystem.
Alex is Editor-in-Chief of Coindoo and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
