EUR0

High-Level Overview

The EUR0 contract is designed to manage the EUR0 ERC20 Token, implementing functionalities for minting, burning, and transfer operations while incorporating blacklist checks to restrict these operations to authorized addresses. The total EUR0 supply is collateralized with at minimum 1:1 in Euro-denominated collateral tokens, ensuring the stability and security of the protocol.

Contract Summary

EUR0 is an ERC-20 compliant token that integrates additional security and access control features to enhance its governance and usability. It inherits functionalities from ERC20PausableUpgradeable and ERC20PermitUpgradeable to support permit-based approvals and pausability.

Minting EUR0

Users can swap their Euro collateral tokens via the DaoCollateral contract to mint an equivalent amount of EUR0. The minting process is subject to several checks:

• The amount must not exceed the current collateral backing

• The total supply after minting must not exceed the total collateral backing

• The caller must have the EUR0_MINT role

Redeeming EUR0

Users can swap any EUR0 back to the underlying Euro collateral tokens at any time via the DaoCollateral contract, burning the EUR0 in the process. The redemption process includes a configurable fee to prevent oracle manipulation attacks.

Regulatory Compliance

The contract includes a blacklist feature to ensure regulatory compliance. Sanctioned addresses are prevented from interacting with the contract, and the list is kept up to date.

Collateralization Enforcement

Minting of EUR0 is only possible if the total collateral backing equals or exceeds the EUR0 totalSupply(). The contract verifies this by:

• Checking the balance of all Euro collateral tokens in the treasury

• Converting collateral amounts to EUR using oracle prices

• Ensuring the total collateral value in EUR exceeds the new total supply

Functionality Breakdown

Key Functionalities

• Minting: Tokens can be minted to an address, subject to role checks and collateralization requirements.

• Burning: Tokens can be burned from an address, subject to role checks.

• Transfers: Only non-blacklisted addresses can send or receive tokens.

• Blacklist Management: The contract implements a blacklist system for regulatory compliance.

Functions Description

Public/External Functions

• pause(): Pauses all token transfer operations; callable only by the PAUSING_CONTRACTS_ROLE.

• unpause(): Resumes all token transfer operations; callable only by the UNPAUSING_CONTRACTS_ROLE.

• mint(address to, uint256 amount): Mints tokens to a non-blacklisted address if the caller has the EUR0_MINT role and collateralization requirements are met.

• burn(uint256 amount) and burnFrom(address account, uint256 amount): Burns tokens from an address, requiring the EUR0_BURN role.

• blacklist(address account) and unBlacklist(address account): Allows the admin to blacklist or remove from blacklist malicious users from using this token. Only callable by the BLACKLIST_ROLE.

• isBlacklisted(address account): Checks if an address is blacklisted.

Role-Based Access Control

The contract implements several roles for different operations:

• EUR0_MINT: Required for minting new tokens

• EUR0_BURN: Required for burning tokens

• BLACKLIST_ROLE: Required for managing the blacklist

• PAUSING_CONTRACTS_ROLE: Required for pausing the contract

• UNPAUSING_CONTRACTS_ROLE: Required for unpausing the contract

Safeguards Implementation

• Pausability: Allows pausing of all token transfers in emergencies

• Blacklist: Prevents sanctioned addresses from interacting with the token

• Collateralization Check: Ensures EUR0 remains fully backed by Euro collateral

• Role-Based Access: Restricts sensitive operations to authorized roles

Security Features

Blacklist Mechanism

The contract implements a comprehensive blacklist system that prevents blacklisted addresses from:

• Sending tokens (from address is blacklisted)

• Receiving tokens (to address is blacklisted)

• Any transfer operations involving blacklisted addresses

Collateralization Verification

The minting process includes real-time collateralization verification:

• Fetches all supported Euro collateral tokens from the token mapping

• Calculates the total value of collateral in EUR using oracle prices

• Ensures the new total supply does not exceed the collateral backing

• Prevents over-minting that would compromise the 1:1 collateralization ratio

Access Control

All critical functions are protected by role-based access control:

• Only authorized roles can mint, burn, pause, or manage blacklists

• Prevents unauthorized manipulation of token supply

• Ensures regulatory compliance through controlled blacklist management