Proposal to add agEUR/VEUR to the Gauge Controller

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 1 has kept a super tight peg since its launch. It is involved in several other gauges on Curve as well which have historically yielded a pretty important volume.

VNX Description:

VNX, a Liechtenstein-based company licensed by the Liechtenstein Financial Market Authority (FMA), is developing a more secure and reliable infrastructure for global transactions by introducing gold-backed and fiat stablecoins.

VNX fiat stablecoins expands investor capabilities in the crypto space by offering digital assets referencing fiat currencies. The first fiat referencing tokens presented to the market were VNX Euro (VEUR) and VNX Swiss Franc (VCHF). VNX stablecoins provide the ability for crypto users to trade in their native currencies as well as manage their portfolio more effectively: to hedge, trade, and profit with more options.

VNX Gold (VNXAU) is the first European multichain token backed by physical gold certified by the London Bullion Market Association (LBMA) and represents individual ownership of the gold (1 VNXAU token is equal to 1 gram of physical gold). With VNX Gold investors can get the same benefits as investing in physical gold, such as store of value, protection against volatility and inflation, and high liquidity – with complete digital convenience and freedom. The physical gold backing VNXAU is stored in an isolated, high-security vault in Liechtenstein, a country with stable economy, S&P AAA rating and an EEA member.

VNX tokens are traded on crypto exchanges such as LBank, BitForex, XT.COM and Emirex, and the list of trading venues is growing, so stay tuned to keep updated.

Token generation and all token services are carried out by VNX Commodities, a company registered with the Liechtenstein Financial Market Authority (FMA) under the TT Token Providers and Services Act (TVTG). The list of licenses can be found at the regulator’s registry at this link.

The total funding for the project is 7.3 million euros with the lead investor Woori Technology Investment (South Korea)).

Motivation:

VNX, as a regulated European company, is a native partner for private and institutional investors in Europe and can accept Euros from them to mint VEUR. But VNX Euro is not yet as integrated into DeFi as agEUR. It would create additional opportunities for on-ramp/off-ramp for agEUR, and it would provide VEUR holders with features that have already been developed on agEUR (in credit markets such as Aave).

Specifications:

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 Angle DAO - Angle 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.

VNX Euro is a centralized stablecoin.

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

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

VNX has no oracles at this time.

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

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.

VEUR has undergone a smart contract audit (link). VNX is also undergoing a permanent audit of reserves (link - VNX) .

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.

VNX Euro is a centralized stablecoin.

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. When the USDC was depegged and due to the market panic, agEUR was also depegged.

VNX Euro as well as other VNX stablecoins have never lost their peg.