Proposal to add agEUR/EUROe on Ethereum to the Gauge Controller


This is a proposal to add agEUR-EUROe (with A=1000) on Ethereum to the Gauge Controller to enable users to assign gauge weight and mint CRV.

References/Useful links

About Angle

Github Page
• Communities: Discord, Twitter

About Membrane Finance

Developer Portal
Due diligence resources for governors
Legal & Privacy

Projects Description

About Angle

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 $50m with 30m 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 (also called direct deposit modules). It has for instance minted agEUR natively on Aave and on Euler. In these cases, agEUR enters in circulation when they are borrowed in an over-collateralized way on the corresponding protocol. Protocol also mints agEUR on the agEUR-EUROC Curve pool when this pool has more EUROC than agEUR (like what FRAX is doing)

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, agEUR-EUROC) which have historically yielded a pretty important volume.

About Membrane Finance

Membrane Finance is the issuer of EUROe, an overcollateralised euro stablecoin that is regulated as electronic money in the EU by the Finnish Financial Supervisory Authority. Membrane Finance is the first EU-regulated euro stablecoin issuer.

EUROe’s status as electronic money, or e-money for short, ensures its compatibility with current and upcoming regulation. For each EUROe issued, there exists at least one fiat Euro in a European financial institution or bank, ring-fenced from Membrane Finance. In addition to the 1:1 reserve requirement, the legislation imposes a own funds requirement of at least 2% of CET1 equity capital equivalent. In practice, this means that all EUROe in circulation are backed by reserve assets and equity buffer equal to 102% of the issued EUROe.

New EUROe can be minted or existing EUROe can be redeemed to fiat euros by Membrane Finance’s customers. Membrane Finance currently onboards corporate customers, subject to the current Know-Your-Business (KYB), Anti-Money Laundering (AML), Countering the Financing of Terrorism (CFT), and Know-Your-Customer (KYC) policies of Membrane Finance. Membrane Finance’s customers can mint & redeem EUROe 1:1 to fiat euros. Minting, redemption, and use of the EUROe service are free. For more information about the fees, see Pricing at In order to preserve the privacy of the end-users of EUROe, Membrane Finance does not currently onboard individual users.


Angle is an over-collateralized Euro stablecoin, meaning that to get 1 agEUR you usually need more than one euro worth of collateral. This creates a notable barrier for people who want to on-ramp to agEUR and the conversion from 1 EUR in cash to 1 agEUR is not obvious. Similarly, off-ramping agEUR can be quite inefficient and the majority of the routes imply swapping to USDC thus bearing a transient change risk.

EUROe as a centralized stablecoin does not face such issues, as it can easily convert fiat to crypto. On-ramping as well as off-ramping can be done freely.

An agEUR/EUROe pool would hence get the volume of people on-ramping and off-ramping to/from agEUR using the solution developed by Membrane.

At the same time, agEUR has a deep liquidity with many other USD stablecoins, and as such it would help arbitrageurs maintain the peg of EUROe with respect to other non-Euro assets on-chain. While EUROe should be an easy asset to arb after its launch given the possibility to mint/burn 1:1 from fiat, only KYC-ed people should be able to manually take advantage of it at launch. Given that agEUR is already involved in many arbitrage routes, a deep integration for agEUR integration would benefit EUROe peg and volume.

EUROe is a pretty new asset in DeFi with fewer integrations than what is currently supported with agEUR. A deep Curve pool would also help provide all EUROe (and hence all EUR holders) the opportunities that have already been developed around agEUR (Aave, Euler, …). Angle has a track record of building integrations for agEUR: a big pool would in a way enable Membrane to delegate part of the EUROe integration work to agEUR and Angle.

This pool, if big enough, could also be plugged to Angle AMO technology like what is done on the agEUR-EUROC pool. In this case, this pool would become a de facto price stability module of agEUR, and fees would be accruing to veCRV holders each time someone enters or exits the protocol.


  1. 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: 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.

Membrane: EUROe is a centralised stablecoin. The role-based access control mechanisms are explained in our documentation. The roles are controlled by addresses secured with multi-party computation (MPC). The EUROe contracts are upgradable and implemented through a ERC-1967 proxy.

  1. Oracles: Does the protocol rely on external oracles? If so, provide details about the oracles and their implementation in the protocol.

Angle: The protocol uses Chainlink oracles (and in some cases Uniswap TWAPs in parallel to these feeds to make sure oracle are non manipulable)

Membrane: EUROe does not use any oracles. The value of EUROe is guaranteed by 1:1 minting & redemption rate from/to fiat euro. EUROe is legally recognised as euro.

  1. Audits: Provide links to audit reports and any relevant details about security practices.

Angle: Angle Protocol was audited 4 different times. Audit reports can be found here. The protocol was also reviewed by independent contributors like DeFiSafety, or Curve funded contributors.

Membrane: KPMG serves as Membrane Finance’s internal auditor. Membrane Finance and independent parties provide regular reserve attestations, reports, and audits. EUROe smart contracts have been audited by PeckShield and Runtime Verification. For more information about security, please refer to our Developer Portal.

  1. 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.

Angle: 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.

Membrane: Membrane Finance is a centralised issuer of electronic money.

  1. 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?

Angle: 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. It kept its stability as well during last week market turmoil.

Membrane: EUROe is legally recognised as euro and is redeemable by law, hence the peg should track euro price closely. EUROe has been live on Ethereum since the end of January, and its price has closely tracked that of euro.

Awesome to see more and more of these new generative legislation-approved euro stablecoins come to curve via collaboration with defi friendly stables like agEUR. Especially with the recent USD scares and its possible affects on USD stablecoins, this is direly needed.

Fully supportive of this, and seems like safety of both protocols is very very high