EURO3, issued by the 3A Lending Protocol smart contracts under the governance of A3A tokenholders, is a crypto-collateralized stablecoin that maintains a 1:1 peg to the Euro (EUR) through over-collateralized, non-custodial Vaults [S1][S2][S3].

EURO3 provides a payment instrument pegged 1:1 to the Euro (EUR), minted when users deposit whitelisted onchain assets into Vault smart contracts and draw EURO3 against them [S2][S3]. The token does not accrue yield or rebase [S3][S4]. Loans carry no recurring interest, though a one-off issuance fee of 0.5% to 5% is charged in EURO3 on the drawn amount, set by the Risk Model [S2][S5][S4]. Tokenholders may stake EURO3 in the Stability Pool to earn liquidated collateral plus A3A rewards [S4].

EURO3 is governed by 3A DAO, registered in the Marshall Islands as a non-profit, 3A DAO LLC, and is not issued by a single corporate entity; supply is independent of any party [S1][S3][S4][S6]. The holder's claim is a redeemable, over-collateralized claim against onchain collateral held in Vaults rather than against a corporate balance sheet [S2][S3][S4]. The protocol is permissionless and non-custodial [S2][S4]. EURO3 is redeemed onchain in-kind by depositing it into Vaults below a minimum Health Factor to withdraw equivalent collateral, less a redemption fee of 1% at launch, adjustable between 0.5% and 5% [S5].

EURO3 is an ERC-20 token deployed natively on Linea Mainnet and Polygon Mainnet, each with distinct contract addresses [S4][S7][S8]. Minting and burning occur via Vault deposits, repayment, and onchain redemption, settling immediately onchain [S2][S3][S5]. Peg stability uses arbitrage, dynamic issuance fees, and an automated WatchDog Bot, with Chainlink and Pyth Network price feeds supplying EUR and USD oracles [S2][S4].

<Sources
  retrievedAt="2026-06-22"
  items={[
    { id: "S1", url: "https://docs.3adao.org/3a-protocol/governance/3a-dao" },
    { id: "S2", url: "https://docs.3adao.org/3a-protocol" },
    { id: "S3", url: "https://docs.3adao.org/3a-protocol/protocol-documentation/euro3-coin" },
    { id: "S4", url: "https://docs.3adao.org/3a-protocol/llms-full.txt" },
    { id: "S5", url: "https://docs.3adao.org/3a-protocol/protocol-documentation/lending/redemptions.md" },
    { id: "S6", url: "https://www.3adao.org/about" },
    { id: "S7", url: "https://docs.3adao.org/3a-protocol/technical-documentation/smart-contracts/linea-mainnet-contracts" },
    { id: "S8", url: "https://docs.3adao.org/3a-protocol/technical-documentation/smart-contracts/polygon-mainnet-contracts" },
  ]}
/>


# Asset off peg methodology

## 1. Overview

The asset off peg metric is defined as the percentage deviation of a tokenized asset's daily closing market price from its designated reference (pegged) asset price. This metric is utilized to assess the stability and peg-keeping performance of stablecoins, wrapped assets, and other pegged tokens. The deviation is calculated relative to the reference price, representing either a premium or a discount in the market. Daily tracking of this metric is performed to enable the monitoring of peg stability and the identification of potential de-pegging events across various asset classes.

## 2. Data sources

- **EVM chain events**: `AnswerUpdated` events from Chainlink aggregator contracts, covering EVM-compatible chains (Ethereum, Polygon, and others)
- **Asset metadata**: Reference asset configurations and token mappings
- **External data**: End-of-day price feeds for tokenized assets

## 3. Step-by-step calculation

### Component A: Retrieve asset prices and reference mappings

- **Purpose**: Identify the daily closing price of each asset and map it to its designated reference currency
- **Logic**: Daily closing prices for each asset are retrieved from end-of-day price feeds. Each asset is mapped to its designated reference currency (such as the U.S. Dollar, Euro, or British Pound) using asset metadata. For assets pegged to the U.S. Dollar, a fixed reference rate of 1.0 is assigned. For assets pegged to other fiat currencies, the corresponding Chainlink FX feed is identified.
- **Key fields**: `asset_price` (daily closing price of the asset), `reference_asset` (the target peg currency), `fx_feed_name` (the identifier for the Chainlink FX feed)

### Component B: Resolve daily reference prices

- **Purpose**: Determine the daily USD value of the reference peg currency
- **Logic**: Daily FX rates are extracted from Chainlink oracle price feeds on EVM-compatible chains. To account for days without oracle updates, the last recorded rate for each FX feed is carried forward to construct a continuous daily time series. The daily reference price is then established by matching the asset's mapped FX feed or fixed rate with the corresponding daily rate.
- **Key fields**: `price` (the FX rate from the oracle feed), `timestamp` (the date of the rate), `reference_price` (the resolved daily reference price in USD)

### Component C: Calculate peg deviation

- **Purpose**: Compute the final percentage deviation of the asset price from its reference price
- **Logic**: The daily asset price and the resolved daily reference price are aligned by timestamp and asset identifier. The percentage deviation is calculated by subtracting the reference price from the asset price, and dividing the result by the reference price. Days where a reference price cannot be resolved are excluded from the final dataset.
- **Key fields**: `asset_off_peg` (the percentage deviation from the peg), `timestamp` (the daily grain timestamp)

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

(market_price - reference_price) / reference_price

Percentage deviation of the asset price from its reference peg.

Asset off peg

Stablecoins

3A DAO generates revenue through stability fees on EURO3 debt positions and liquidation penalties.

EURO3 is a decentralized Euro-pegged stablecoin deployed on Polygon and Linea. Users mint EURO3 by depositing collateral into overcollateralized vaults.

3A DAO is a decentralized organization building Euro-denominated stablecoin infrastructure.

website

twitter

Stablecoin issuers

3A DAO

3A DAO EURO3 (EURO3) is a euro stablecoin issued by 3A DAO.

Retail investors, professional investors, accredited investors, qualified investors, qualified purchasers, and institutions can mint and redeem directly with 3A DAO.

EURO3 has been issued on public blockchains since November 2023 and is native to Polygon and Linea.

3A DAO EURO3EURO3