This is a proposal to add agEUR-EUROC (with A=1000) on Ethereum to the Gauge Controller to enable users to assign gauge weight and mint CRV.
Angle is a decentralized stablecoin protocol designed to be both over-collateralized and capital-efficient.
The protocol has launched agEUR, a Euro stablecoin, which has become the biggest decentralized Euro stablecoin.
The TVL in the Angle Protocol is $81m with 47m agEUR in circulation.
There are different mechanisms (also called modules) by which agEUR can be issued all having in common that agEUR must be released on the market in an over-collateralized way.
- In the Core module of the protocol, agEUR can be minted from USDC, DAI and FRAX at oracle value. The protocol insures itself against the $/€ change risk by issuing perpetual futures and by relying on the deposits of another type of agent incentivized by the strategies built by the protocol and by transaction fees. agEUR issued from this means represent the biggest share of the agEUR in circulation, and they are currently over-collateralized at 200%
- The protocol also has a borrowing module where agEUR can be borrowed against different assets (ETH, wBTC, wstETH) like on Maker. This module is deployed on different chains
- The protocol is also engaged in algorithmic market operations. It has for instance minted agEUR natively on Aave and on Euler. In these cases, agEUR enter in circulation when they are borrowed in an over-collateralized way on the corresponding protocol.
agEUR has kept a super tight peg since its launch. It is involved in several other gauges on Curve as well (agEUR-EURs-EURt, agEUR-ibEUR, agEUR-EUROC-cEUR) which have historically yielded a pretty important volume.
There have been many discussions on the Angle governance forum about how to navigate with the EUROC launch. What came out is the opportunity to use Curve as a price stability module. The agEUR-EUROC pool if big enough could help maintain agEUR’s peg, and should drive arbitrage volume on both sides (as EUROC is so far not as integrated as agEUR at the moment).
It would reduce the on-ramp/off-ramp fee to and from agEUR, as well as provide to EUROC holders the opportunities which have already been developed on agEUR (on lending markets like Aave and Euler).
There’s also an ongoing proposal to seed the pool using the protocol funds and liquidity, and it’s possible that the Angle DAO whitelists the pool to conduct AMOs (like FRAX is doing) to mint agEUR in the pool as soon as there are more EUROC than agEUR in the pool. In this case, this pool would become the de facto price stability module of agEUR, and fees would be accruing to veCRV holders each time someone enters or exits the protocol.
While agEUR and EUROC are already tied together in a Curve pool (with cEUR), it makes sense to rely on a new pool specifically to serve these use cases of facilitating the on-ramping and off-ramping on agEUR and maintaning stability without introducing the risk of another decentralized (bridged) stablecoin in the market.
- Governance: Provide current information on the protocol’s governance structure. Provide links to any admin and/or multisig addresses, and describe the powers afforded to these addresses. If there are plans to change the governance system in the future, please explain.
Angle governance is explained in details in this page of our docs. The Angle protocol is controlled by veANGLE holders which have the power to vote on Angle Improvement proposals.
Votes are implemented on-chain by a 4/6 multisig composed of the following signers: Pablo Veyrat, Guillaume Nervo, Picodes (all 3 from Angle Core Team) @SebVentures (from Maker), Julien Bouteloup and 0xMaki.
- Oracles: Does the protocol rely on external oracles? If so, provide details about the oracles and their implementation in the protocol.
The protocol uses Chainlink oracles (and in some cases Uniswap TWAPs in parallel to these feeds to make sure oracle are non manipulable)
- Audits: Provide links to audit reports and any relevant details about security practices.
- Centralization vectors: Is there any component of the protocol that has centralization vectors? E.g. if only 1 dev manages the project, that is a centralized vector. If price oracles need to be updated by a bot, that is a centralized vector. If liquidations are done by the protocol, that is also a centralization vector.
The protocol runs on decentralized systems, it relies on competitive liqudiations, and vote-based governance. There’s no single person or dev with admin controls over the protocol. And as disclosed in question 1., the treasury and some part of the protocol are secured by a multisig of doxxed team members.
- Market History: Has the asset observed severe volatility? In the case of stablecoins, has it depegged? In the case of an unpegged asset, have there been extreme price change events in the past? Provide specific information about the Curve pool: how long has it been active, TVL, historical volume?
agEUR has remained stable since its launch, despite adverse market conditions. agEUR has held Curve pools for several months, for most of which it has provided a considerable share of volume on Ethereum and Polygon. During the week of the UST crash, it even helped EURs keep its peg while there was some lag in the redemption process. Same happened with ibEUR.