What is Angle Protocol? A Deep Dive into the Decentralized Stablecoin Platform

Angle Protocol is a decentralized, over-collateralized stablecoin protocol designed for capital efficiency. It enables seamless conversion between stable assets (like stablecoins) and collateral assets based on real-time price data. This means users can easily swap between a collateral asset and a stablecoin, benefiting the protocol’s liquidity and increasing capital efficiency.

Angle Protocol involves three key participant groups:

• Stable Seekers and Holders (or Users): These individuals mint, use, or burn stable assets.
• Hedging Agents (HA): HAs gain on-chain leverage through perpetual futures contracts within a single transaction. This mechanism protects the protocol against collateral asset volatility.
• Standard Liquidity Providers (SLP): SLPs contribute collateral assets to the protocol, automatically earning yields from transaction fees and rewards.

Angle Protocol: Key Features and Advantages

Angle Protocol offers several compelling features that distinguish it in the decentralized finance (DeFi) landscape. These include:

Highly Liquid Euro Stablecoin (agEUR)

Angle Protocol allows users to mint agEUR using other stablecoins like USDC or DAI. The platform’s ability to swap between stablecoins and other collateral assets ensures sustained liquidity for agEUR. This is particularly beneficial for users outside the USD ecosystem, such as those in Europe, as agEUR provides an effective hedge against exchange rate fluctuations.

Optimized Capital Efficiency

Angle Protocol is designed to provide over-collateralized loans while simultaneously ensuring the efficiency of under-collateralized assets. Let’s break down these concepts:

• Over-Collateralization: This refers to a loan where the value of the collateral exceeds the loan amount. For example, depositing $100 of collateral might allow you to borrow $80.
• Under-Collateralized Assets: These assets have a value lower than the required collateral for a specific loan amount. While this presents higher risk for lenders, Angle Protocol’s design ensures these loans go to borrowers with higher urgency, mitigating the risk. For example, depositing $100 might allow a borrower to access $120.

Angle Protocol guarantees lender returns even with the higher risk associated with under-collateralized assets, benefiting both lenders and borrowers.

Returns on Collateral Assets

Users can over-collateralize loans on the protocol by depositing tokens and receiving corresponding LP tokens called “sanTokens.” These tokens accrue yields from transaction fees and yield-generating strategies employed by the protocol’s reserve fund. The APY for holding sanTokens can potentially outperform yields on platforms like AAVE, Compound, and Yearn.Finance.

Understanding the ANGLE Token

Key Metrics

The Angle Protocol Token (ANGLE) is the governance token of the Angle Protocol. Here are its key metrics:

• Token Name: Angle Protocol Token
• Ticker: ANGLE
• Blockchain: Ethereum
• Token Standard: ERC-20
• Contract: 0x31429d1856ad1377a8a0079410b297e1a9e214c2
• Token Type: Governance
• Total Supply: 1,000,000,000 ANGLE

ANGLE Token Allocation

The total supply of 1,000,000,000 ANGLE is allocated as follows:

• Liquidity Mining: 40% (distributed to agToken holders, HAs, SLPs, and external pool liquidity providers)
• DAO Treasury: 20%
• Core Teams: 18%
• Strategic Partners (Grants & Partnership): 12%
• Early Backers: 10%

ANGLE Token Release Schedule

The ANGLE token release schedule is designed for long-term sustainability and community involvement:

• Liquidity Mining: The 40% allocated to liquidity mining will be distributed over 10 years. The release schedule is subject to community governance and can be adjusted weekly. The initial estimate is approximately 1.007827 ANGLE per week.
• Core Teams: Subject to a 3-year vesting schedule.
• Grants & Partnership: Release timelines are not explicitly defined but are tied to community grants, bug bounties, and exchange listings.
• Early Backers: Subject to a 3-year vesting schedule.

Governance: ANGLE holders have voting rights and participate in the governance of the protocol.

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Acquiring ANGLE Tokens

There are several ways to acquire ANGLE tokens:

• Liquidity Mining: Swapping assets within the protocol earns ANGLE tokens.
• Decentralized Exchanges: Purchase ANGLE on decentralized exchanges like SushiSwap.
• Staking: Stake agEUR or sanTokens to earn ANGLE tokens.

ANGLE Token Trading Platforms

ANGLE is currently traded on several decentralized exchanges, including SushiSwap.

Roadmap and Updates

• Mainnet Launch: Angle Protocol launched on the Ethereum mainnet on November 3, 2021.
• agEUR Launch: Angle Protocol pioneered the minting of a Euro-pegged stablecoin, agEUR.
• Future Plans: The protocol plans to expand its stablecoin offerings based on various assets to cater to diverse user needs.

Investors and Partners

Investors

Angle Protocol has attracted investment from prominent firms, including a16z.

Partners

Key partnerships include:

• Immunefi: For bug bounty programs and security audits.
• Gate.io: For exchange listing and liquidity.

Similar Projects

Angle Protocol shares similarities with projects like DAOMaker but differentiates itself through its multi-collateral stablecoin minting, capital efficiency mechanisms, and broader range of supported assets.

FAQ

• What is the primary use case of ANGLE token? ANGLE is primarily used for governance, allowing holders to vote on protocol upgrades and changes.

• How does Angle Protocol maintain the stability of agEUR? agEUR’s stability is maintained through over-collateralization and arbitrage mechanisms.

• What are the risks associated with providing liquidity to Angle Protocol? Risks include smart contract vulnerabilities and potential impermanent loss.

• How can I contribute to the Angle Protocol community? You can participate in governance, provide liquidity, or contribute to development efforts. Join the Angle Protocol community forums and Discord for more information.

We encourage you to share this article and leave your questions and comments below. Your engagement helps us build a thriving community around Angle Protocol and the future of decentralized stablecoins.