Why Quantillon Protocol

Over the past decade, decentralized finance (DeFi) has emerged as one of the most transformative movements in financial history. Yet, despite its global ambitions, DeFi remains overwhelmingly denominated in U.S. dollars, structurally excluding over 300 million European savers and institutions who operate natively in euros. This asymmetry not only exposes European participants to unnecessary currency risk but also fails to capitalize on a vast pool of capital currently parked in underperforming legacy products such as life insurance contracts, and regulated savings plans.

Quantillon Protocol seeks to rectify this imbalance through a revolutionary three-token ecosystem: QEURO (euro-pegged stablecoin), stQEURO (yield-bearing auto-compounding wrapper), and QTI (governance token with vote-escrow mechanics). This synergistic architecture creates interconnected value flows where each token reinforces the utility and adoption of the others.

QEURO operates through an innovative dual-pool architecture—composed of "Users" who mint and stake QEURO, and "Hedgers" who assume delta-neutral FX positions on the EUR/USD pair—achieving fully decentralized, scalable, and compliant stablecoin issuance. stQEURO automatically compounds yields from QEURO collateral deployment without token inflation, offering Europeans their first native yield-bearing euro instrument with instant liquidity and full DeFi composability. QTI enables sophisticated governance through vote-escrow mechanics, progressive decentralization, and sustainable incentive alignment. At its core lies a set of innovative mechanisms: permissionless hedging, yield redistribution through a variable "Yield Shift," and modular collateral management through vault variants (e.g., aQEURO, mQEURO, bQEURO, eQEURO).

💡 Economic Philosophy: The Cantillon Effect

The fundamental economic insight underpinning Quantillon is an application of the Cantillon Effect: in a financial ecosystem where monetary expansion benefits capital allocators first, the lack of euro-native DeFi instruments deprives European savers of fair access to yield. The current euro financial infrastructure systematically misallocates savings via opaque, fee-laden intermediaries and suboptimal risk-reward profiles. Quantillon reimagines this ecosystem by offering a highly liquid, capital-efficient, and decentralized alternative that can serve both as a euro-denominated savings product and a trusted stablecoin.

🌍 Macroeconomic Context

From a macroeconomic standpoint, the project responds to a structural divergence between the monetary policies of the Federal Reserve and the European Central Bank. While the Fed's aggressive tightening cycle post-COVID has created a strong dollar carry trade, the ECB has been slower to react, leaving the euro structurally weaker and more volatile. This has made USD-denominated DeFi attractive globally, but introduces a hedging need for eurozone participants—a need Quantillon meets through embedded FX mechanisms.

⚖️ Regulatory Positioning

Regulatorily, Quantillon stands apart through its alignment with MiCA (Markets in Crypto Assets) regulation. By operating as a decentralized protocol under Recital 22, it remains outside the scope of direct regulatory enforcement while retaining pathways for institutional compliance via the Quantillon Foundation. Early engagement with the French ACPR (Autorité de Contrôle Prudentiel et de Résolution) reinforces this legitimacy.

💰 Economic Model

Economically, the protocol generates revenue through mint/redeem fees (0.1%) and by capturing a share of the yield generated from collateral deployed on trusted DeFi platforms such as Aave. A conservative projection at 20M TVL (Total Value Locked) with an average Aave APY of 7% and swap volume 20x TVL yields over 500K EUR/year in protocol revenue. This supports a scalable model with low fixed infrastructure costs and exponential revenue potential.

🏆 Competitive Advantages

Compared to existing euro-stablecoins such as EUROC (Circle), EURS (Stasis), or EURT (Tether), Quantillon represents the only comprehensive three-token euro-DeFi ecosystem, offering:

• ✅ Superior capital efficiency via delta-neutral hedging

• ✅ Composability across multiple DeFi protocols

• ✅ Liquidity by design through Forex and USDC markets

• ✅ Yield-bearing QEURO instruments for both retail and institutional users

👥 Team & Structure

Finally, the protocol is backed by a seasoned team with decades of experience in software architecture, financial systems, and DeFi engineering. It is structured through three distinct but complementary entities: Quantillon Protocol (on-chain governance), Quantillon Labs (development and liquidity bootstrapping), and Quantillon Foundation (regulatory interface).

In a European savings landscape marked by inertia, fragmentation, and regulatory complexity, Quantillon Protocol presents a credible, innovative, and technically rigorous solution. It is not merely a stablecoin—but a new paradigm for euro-based digital savings and decentralized capital formation.