A Decentralized Exchange (DEX) Optimized for Euro-Pegged Stablecoins
Version: 1.0
Date: June 2025
Issued by: EuroPal Foundation
Abstract
EuroSwap is a next-generation decentralized exchange (DEX) tailored exclusively for Euro-pegged stablecoins. Built on the foundations of the EuroPal Ecosystem, it is designed to enable seamless, low-slippage swaps between assets such as €PAL, EUROC, EURT, and other MiCA-compliant, Euro-backed tokens.
With multi-chain support, institutional-grade security, and embedded regulatory controls, EuroSwap fills a critical gap in the European DeFi market by offering a robust, MiCA-compliant infrastructure for EUR-denominated asset trading.
Key Features
✅ Low-Slippage Swaps – Optimized AMM engine specialized for Euro stablecoins
✅ MiCA-Compliant Liquidity Pools – On-chain KYC & AML filtering
✅ Cross-Chain Support – Ethereum, Polygon, Arbitrum, with LayerZero bridging
✅ Yield Aggregation – Auto-compounding LP and staking rewards in €PAL
✅ Governance-Owned – Managed by €PAL and $ESWAP token holders
1. Introduction
Problem Statement
Despite the growing adoption of Euro-pegged stablecoins, most decentralized exchanges fail to support efficient, compliant, and liquid EUR markets due to:
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High Slippage: Sparse liquidity in EUR pools results in price inefficiencies.
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Regulatory Blind Spots: Lack of compliance with MiCA makes institutions reluctant to engage.
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Liquidity Fragmentation: Stablecoin liquidity is scattered across chains and protocols.
Solution: EuroSwap
EuroSwap solves these problems through a compliance-first, Euro-native DEX optimized for efficiency and regulatory readiness:
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Concentrated Liquidity Pools using Uniswap v3-style AMM architecture
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Integrated KYC Tiers for regulated liquidity provision and trading
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Cross-Chain Liquidity Bridges via CCIP/LayerZero for Euro stablecoin interoperability
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Native €PAL integration for staking, rewards, and protocol governance
2. Technology Overview
Architecture Diagram
(Insert visual diagram: DEX UI > Router > Liquidity Pools > Compliance Modules > Bridges > Oracle Feeds)
Core Smart Contracts
| Contract | Purpose |
|---|---|
EuroSwapPool.sol | MiCA-optimized AMM for Euro stablecoins |
LiquidityManager.sol | KYC-gated LP position tracking |
CrossChainRouter.sol | Bridges €PAL and others across chains |
FeeDistributor.sol | Revenue sharing to LPs and stakers |
SanctionsOracle.sol | OFAC and EU sanctions compliance |
ReserveVerifier.sol | On-chain liquidity proof-of-reserve |
3. Tokenomics
Governance Token: $ESWAP
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Total Supply: 1,000,000,000,000 $ESWAP
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Use Cases: Governance, fee discounts, liquidity mining rewards
Distribution
| Category | Allocation | Vesting Schedule |
|---|---|---|
| Liquidity Mining | 40% | Dynamic emissions |
| Treasury (DAO) | 25% | Community-controlled |
| Team & Advisors | 20% | 3-year vesting, 1-year cliff |
| Ecosystem Fund | 15% | Strategic integration partners |
Fee Structure
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Trading Fees: 0.15%
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0.05% to Liquidity Providers (LPs)
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0.10% to $ESWAP stakers
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Cross-Chain Transfer Fees: 0.1% (paid in €PAL)
4. Compliance & Security
MiCA Integration
EuroSwap’s compliance layer ensures full adherence to EU crypto regulations:
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KYC/AML Liquidity Tiers:
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Tier 1: Retail (Up to €1,000/day)
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Tier 2: Verified Individuals (Up to €10,000/day)
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Tier 3: Institutions (Unlimited)
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Sanctions Screening:
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Real-time checks via
SanctionsOracle.solwith OFAC & EU blacklists
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Audits:
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Chainlink Proof-of-Reserve feeds for €PAL and pool assets
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Independent smart contract audits (CertiK, Hacken scheduled)
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Emergency Protection
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Circuit Breaker Module:
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48-hour governance delay for critical actions
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Emergency multisig override for protocol pause
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5. Roadmap
| Date | Milestone |
|---|---|
| Q3 2025 | Mainnet launch on Ethereum w/ €PAL, EUROC, EURT pools |
| Q4 2025 | Cross-chain expansion to Polygon & Arbitrum |
| Q1 2026 | Institutional onboarding via MiCA-certified custody |
| Q2 2026 | Launch of EuroSwap Pro: Institutional order-book model |
| Q3 2026 | €PAL as payment method for gas & yield distribution |
| 2027+ | Integration with ECB’s Digital Euro and other CBDCs |
6. Conclusion
EuroSwap is positioned to be the leading MiCA-compliant DEX for Euro stablecoins, combining the speed and efficiency of decentralized markets with the trust and compliance of traditional financial infrastructure. Built on top of the EuroPal ecosystem, EuroSwap is more than a protocol—it is a financial bridge between decentralized finance and Eurozone institutions.
With a forward-looking roadmap, strong compliance backbone, and rapidly growing ecosystem partnerships, EuroSwap sets a new standard for compliant DeFi in Europe and beyond.
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