Simple Summary

We propose to co-fund and launch gEURO, a €1.00-pegged CDP stablecoin on Gnosis Chain. gEURO is a Liquity V2 fork operated by RaidGuild, backed by ETH, BTC, and Gnosis-native assets, natively yield-bearing, and designed to integrate with Gnosis Pay, RWAs, and Circles.

Abstract

- gEURO: Euro-stablecoin using Liquity V2 mechanics; collateralized initially by sDAI, wstETH, GNO, osGNO, WBTC (expandable post risk review).

- Yield-bearing: 75% of borrowing fees accrue to gEURO holders; 100% of liquidation fees to stability pool depositors.

- Peg: Always redeemable for €1.00 of collateral; redemptions prioritize lowest-rate vaults.

- Gnosis alignment: GNO can remain delegated while used as collateral; governance receives a protocol revenue share and a future token allocation.

- Ask: $50k grant for audit + legal; and a non-binding liquidity intent (e.g., ~$5M at launch, scalable with growth).

Motivation

1. Ecosystem need: With USD volatility and Gnosis Pay’s growth, euro-centric DeFi is a priority.

2. Differentiation: Decentralized, on-chain collateral and natively yield-bearing stablecoin—distinct from custodial euro tokens.

3. Strategic fit:

• Native euro settlement layer for Gnosis Pay.

• Deepens GNO utility (borrow against GNO while keeping governance delegation).

• Enables RWA issuance/use on Gnosis Chain.

4. Growth: Target $25M TVL within 18 months via ecosystem integrations.

Specification

Core Protocol Design

• Liquity V2 fork (license secured).

- Collateral: sDAI, wstETH, GNO, osGNO, WBTC at launch; others via subsequent risk assessments.

- Vaults: Each position is an NFT (Non-Fungible Vault), enabling transferability and integration with other DeFi protocols.

- Borrowing: Users choose their own interest rate (flexible, fixed-rate style).

- Fees: 75% to gEURO holders; 25% governed (e.g., LP incentives).

- Peg: Redemptions at €1.00; lowest-rate vaults are redeemed first; variable redemption fee.

Unique Gnosis Features

- GNO delegation: Collateralized GNO remains delegatable.

- DAO upside: Portion of protocol revenue + 15% of any future governance tokens to GnosisDAO (proposed with vesting/lockup; details to be finalized with the DAO).

Implementation Plan (≈3 months)

1. Finalize features + Solidity work.

2. Smart-contract audit & testnet deployment.

3. Frontend, documentation, ecosystem integrations.

4. Mainnet launch & marketing rollout.

Milestones

• Month 1: Feature freeze; contracts on testnet.

• Month 2: Audit complete; frontend + docs ready.

• Month 3: Mainnet launch; liquidity bootstrapping.

Budget & Ask

- Grant: $50,000 (security audit + legal).

- Team funding: RaidGuild covers all other design, development, and operational costs.

- Liquidity: Non-binding liquidity intent by GnosisDAO/partners (e.g., ~$5M at launch; scale with adoption).

Risks & Mitigation

- Contract risk → Third-party audit, Liquity-based code, comprehensive tests.

- Peg risk → Redemption mechanism, arbitrage incentives, stability pool.

- Regulatory risk → Early legal review; governance control over new collateral/debt limits.

- Adoption risk → Liquidity intent + integrations with Gnosis Pay, RWAs, Circles, native DeFi.

Critical Success Factors

• Robust €1.00 peg; attractive native yield.

• Smooth UX and onboarding; strong integrations.

• Transparent DAO alignment (revenue share, token allocation).

• Security-first delivery and audit assurance.

Benefits to GnosisDAO

- Treasury upside: 15% of any future governance token (with vesting/lockup) to GnosisDAO.

- Product fit: gEURO as a default euro savings complement to EURe on Gnosis Chain.

- Ecosystem synergies: Gnosis Pay, RWAs, Circles.

- Operator commitment: RaidGuild will run and grow the protocol long-term.

About RaidGuild We are RaidGuild — a Web3-native design and development collective active since 2019. Forged in the MetaCartel community, we’ve delivered smart contracts, protocol interfaces, and DAO tooling across Ethereum and beyond. Notably, we built the original OmniBridge for xDAI (now Gnosis Chain).

This stablecoin initiative is part of our strategy to build and operate community-owned financial primitives on Gnosis Chain, and to steward the infrastructure we create over the long term.

Useful links: gEURO Litepaper • RaidGuild Deck