Proposal to add 3EUR (agEUR/EURs/EURt) gauge

Summary:

Proposal to add 3EUR Factory Pool to the Gauge Controller to enable users to assign gauge weight and mint CRV.

Abstract:

Angle is a decentralized stablecoin protocol. It was designed to be both capital-efficient and over-collateralized. The protocol has launched agEUR, a Euro stablecoin, a couple of weeks ago. It has become the biggest Euro stablecoin with 112m stablecoins issued and a TVL of $180m. The protocol can technically launch stablecoins pegged to any kind of asset, Euro being the first one.

agEUR is currently backed by USDC and DAI and will soon be backed by FEI and FRAX as collateral types. It is minted at oracle value, and can then easily be arbitraged whenever the price deviates from peg: the token has tightly kept its peg since its launch.

The Angle team has been incentivizing the pool with ANGLE tokens. The pool now has €4.4m in it.

Motivation:

A gauge that earn CRV would boost the liquidity in the pool and hence of Euro stablecoins, enabling them to be more useful and integrated in DeFi. Currently in DeFi, European users are exposed to a change risk when they are trying to get yield, having powerful Euro stablecoins is the first way to change this.

Curve’s value proposition is to pair stablecoins that need peg and liquidity with stablecoins that have both. agEUR with its technically infinite liquidity and peg could also help EURs and EURt grow as stablecoins.

This 3EUR pool could also become a Euro equivalent of the 3pool, as the epicenter for the exchange between Euro stablecoins.

Specification:

Everything within the Angle Protocol can be tracked in the Analytics. For more details about the protocol, you can also refer to this docs and this developers doc.

Minting agEUR is available on the Angle App.

For:

3EUR should have a gauge than can earn CRV

Against:

3EUR should not have a gauge that can earn CRV

Poll:

The proposal has not already been created, the gauge has however been deployed (Etherscan.
The goal of this post is more to measure the community’s feeling about adding a gauge for this pool. Proposal should be created soon.

41 Likes

I am definitely in, arbitrage in USD is well established, we need an equivalent for EUR and using the agEUR with its design is the most suited imo.

5 Likes

I`m definitely PRO:) Finally we have stable Euro for DeFi users from EU. Since Angle protocol was launched, TVL grow to 183.69 m $ (DeFi Lama data) which definitely proof that agEUR over-collaterized and will be successful.

6 Likes

One important point is missed in the description. It can redeem to USD stablecoins, correct?

5 Likes

Correct, yes should have made that clearer. agEUR can be minted at oracle value against USDC and DAI.
But they can also always be used to redeem these USD stablecoins at oracle value. Transaction fees vary between 0.25% and 0.5%.
agEUR can thus be super easily arbitraged whenever it deviates from peg as it can always be minted and burnt at oracle value (the protocol uses Chainlink and a Uniswap TWAP)

What allows the protocol to guarantee this convertibility is that it is hedged against the USD/EUR price deviation by long traders that are called hedging agents and that it has an insurance fund made up of its profits and of the deposits of another type of stakeholder called Standard Liquidity Providers (SLPs)

These get a portion of the tx fees induced when minting and burning but most of all yield on the protocol’s reserves. These reserves are currently lent to a strategy dealing with Compound and Aave.
The cool thing here is that there is a multiplier effect at stake: if there is 150 USDC in the protocol with 50 coming from SLPs, 95% is invested in the strategy, and 60% of the yield is given to SLPs (the rest goes to the protocol as a buffer). This means that SLPs receive yield on 0.950.6150 = 90 USDC although they only brought 50 USDC.

3 Likes

I’m highly in support of this proposal. agEUR has become the biggest Euro stablecoins in just a few weeks. Safe and more elegant EUR and with its USD redemption feature it’s perfect for cross-asset swaps - way better than Synthetix.

7 Likes

I keep a high hope on Angle protocol as well as its vision. Hope that this proposal will be approved :slight_smile:

1 Like

It’s great to see the project’s development step by step, the project team is really talented and dedicated people, I hope this good idea is passed, thank you for that.

1 Like

I fully support this proposal. agEUR stablecoin. We need an equivalent for EUR using the agEUR

I support this proposal! agEUR is an important building block for DeFi

1 Like

Definitely a For/Pro proposal. I fully support this proposal. This is a good addition to Curve. With more currencies added to Curve, it ensures diversification and allows more people from the EU to participate in this. This will allow DeFi to move towards a multi-currency space instead of just focusing on USD. A great initiative by Angle Team. Kudos to Sogipec!

1 Like

Adding here some things I have not already specified in the post. I know and I understand that given recent events with USDM, some voters might want to push the diligence!

Check this page of the Angle developers doc where we explain the different roles across the protocol, and in particular what powers the Angle Core Team has and does not have on the protocol.

You can also check this section of the docs for more details on the Angle DAO.

Also the protocol has been audited by Chainsecurity and Sigma Prime. It has a bug bounty running with Immunefi.

And last, the project has raised a round with some VCs (check this blog article). The team is hence contractually bound to work for the project

2 Likes

definitely yes, supporting this proposal. we have seen other gauges that helped with the liquidity issue that many are facing. With this current proposal, it benefits, not only the protocol, but also users from EU! Angle has just launched its mainnet earlier this month, and already has >180m in TVL! This proposal will definitely attract users into providing liquidity + gain more user base for Angle Protocol. The team seems to know what they are doing. It will be a win for Curve/Angle and also the onboarding defi users!

1 Like

Hi, this is indeed a good proposal, but next time give credit to the one who made it for another project Jarvis_Network.
JeanBrasse worked hard to make a long and good proposal, this was being voted and you are literally making it without voting it with your own DAO, just to get it done “first”.

Let’s not talk about how you copied a tweet too.

Check both of the time of the tweet.

Yeah the proposal is good, but they don’t come up with this stuff by themselves, i don’t know what will happen to angle once you’ll have nothing left to copy.

I`m definitely PRO:) Finally we have stable Euro for DeFi users from EU. Since Angle protocol was launched, TVL grow to 183.69 m $ (DeFi Lama data) which definitely proof that agEUR over-collaterized and will be successful.

2 Likes

I do support this proposal. agEUR is doing great, safe and easy for cross asset swaps.

2 Likes

I’m for, 3EUR should have a gauge that can earn CRV.

Angle protocol, aspiring and well on its way to become a stablecoin mainstay, adding much-needed means to users to operate beyond the current limited asset-range in DeFi, does well by integrating with one of the biggest entities in DeFi space. Breaking down borders, expanding reach, increasing liquidity.

I can’t help myself… But how could a project aptly named Angle steer away from a project named Curve? Curve smoothens interacting with Angle protocol, and Angle is yet another sharp addition to Curve

6 Likes

I believe in what Angle Protocol has been doing to make this stablecoin protocol more resistant and align with its long-term goal. I fully support this proposal, this would add value to both Angel and Curve communities.

1 Like

definitely pro! let’s make it happen

Good proposal to add a gauge for this 3EUR pool.

Many users do not have access to EURS or EURT and they end up over-paying to buy a euro stablecoin above fair value (often by 2-3% above the real rate). Angle’s agEUR is by design always trading close to the real rate (within a tight range), because it is redeemable on-chain for USD at the real rate at all times based on Chainlink’s EUR/USD feed, including on week-ends. As this 3EUR pool scales, it will help stabilise all the euro stablecoins on Ethereum closer to fair value, allowing a very safe arbitrage for professional market participants.

This is a very elegant and scalable design for a crypto-backed euro stablecoin, and this pool will allow market participants to easily convert from USD and EUR via either decentralised or centralised stablecoins via Curve.

It makes sense for Curve to start a gauge and therefore acquire a lot of the circulating agEUR, which today is mostly in Uniswap or Sushiswap.

I think if the Curve DAO is keen to go towards ForEx, which they seem to given there is a gauge on EURT + 3CRV, then Curve really needs scalable non-USD stablecoins, and the Angle model is very well suited to that. I’m hoping to see more pools with agEUR in the future (e.g. agEUR + 3CRV or 3EUR + 3CRV), and this 3EUR pool is a great start!

Disclaimer: I am part of the Fabric Ventures team and we have backed Angle, so we may stand to benefit should Curve DAO decide to add a gauge for this pool, but I have tried to be as objective as possible in my post

3 Likes