Angle

Lending

Angle is an over-collateralized, decentralized and capital-efficient stablecoin protocol. It offers full convertibility between stable assets and collateral at oracle value.

Risk Rating
Good
Protocol Code Quality
Protocol Maturity
Protocol Design
Summary
What we like
Angle is an overcollateralized stablecoin protocol that is used to issue stablecoins called agTokens that are pegged to a specific value. agEUR is the first EUR stablecoin issued by the protocol.
What we like less
agTokens could experience bad debt if liquidators across different chains are unable to properly liquidate positions due to low liquidity. agEUR also supports in its reserve assets, Backed securities like bC3M, a tokenized Euro security that has dependencies to centralized entities.
What it means for you
In addition to its stablecoin product, Angle also offers you a great way to earn yield from protocol revenues (stEUR) and get leverage on a broad range of assets.
Information
Exploit/Hacks
One
Info
  • Website
  • Token: ANGLE
  • Tags: Lending
Key Metrics
  • TVL: $30.4M (Rank #110)
  • TVL Ranking by Lending: #0
  • Blockchain: Ethereum, Arbitrum, Polygon, Optimism, Binance, Avalanche, xDai, Celo
  • Chain TVL
    • Ethereum: $27.71M
    • Arbitrum: $1.93M
    • Polygon: $666.71K
    • Optimism: $128.27K
    • Binance: $235.38
    • Others: $130.52
Risk Assessment
Good
Protocol Code Quality
  • Code reviewed by several experienced auditors; Chainsecurity and SigmaPrime
  • Public team promotes accountability
  • One mitigated protocol hack since launch
Protocol Maturity
  • Latest protocol version launched in 2021; maturity over one year minimizes technical risk as smart contracts are well battle-tested
  • Top 10% by total value locked reduces risk
  • Multisig wallet controls protocol upgrades
  • Multisig consists of at least 4 signers, which means the protocol is less susceptible to centralization risks
  • No timelock exists or no information documented, which mean a malicious actor could approve upgrades without any delay
  • Low voting power concentration reduces risk
Protocol Design
  • No death spiral concerns
  • Solid controls to prevent oracle price manipulation
  • Isolated markets enable asset risks to be contained to each individual pool without impacting the entire protocol
  • Robust controls in place to prevent risky borrowing
  • Solid mechanisms in place to ensure healthy liquidations
  • Angle uses the same mechanism as Maker to create stablecoins by providing a volatile asset as collateral
Things to know about Angle

How Angle works

Angle is an overcollateralized stablecoin protocol that consists of several different modules (sets of smart contracts) used to issue agTokens. The first and only stablecoin issued thus far is agEUR, a EUR-based stablecoin. The Angle Borrowing module is the primary minting mechanism for agEUR. This module is based on a similar debt mechanism to that of Maker with DAI. Users deposit tokens as collateral into Angle to mint (borrow) agEUR. The Borrowing module is designed to enable users to lever up on most digital assets through an agEUR loan, or to let users gain access to stablecoins while retaining their exposure to more volatile assets. The Transmuter is a price stability module that consists of a basket of various stablecoins that can be used to mint agEUR. The Transmuter supports three main user actions: mint, burn, and redeem. This means agEUR can be minted at oracle value from any of the supported assets, burned at oracle value for any assets in the backing, or redeemed at any time against a proportional amount of each asset in the backing. The last function provides a way for agEUR holders to always exit the stablecoin at any time, even during black swan events. Transmuter uses a dynamic fee model and internal circuit breakers to autonomously control its exposures to its reserve assets and ensure that agEUR's backing is properly diversified. These autonomous mechanisms help to ensure the system is never over-exposed to the weakest asset in its reserves. Lastly, Angle is also engaged in direct deposit modules, or Algorithmic Market Operations (AMOs), that allow the protocol to directly bootstrap liquidity in other protocols.

How Angle makes money

The Angle Borrowing module charges three different fees to users borrowing agEUR: a mint fee, stability fee, and repay fee. The mint fee is charged upon minting agEUR and added to their outstanding debt. The stability fee can be thought of as a compounding interest rate on the user's outstanding loan. The repay fee is charged when users repay their debt toward the protocol. Additionally, the protocol takes a fee called liquidation surcharge when liquidators send stablecoins to pay back a vault's debt. These protocol fees are used for several purposes including accumulating reserves for riskier assets in case of bad debt, helping maintain agEUR's peg stability by incentivizing/disincentivizing borrowing, and accumulating surplus yield for veANGLE (staked ANGLE) holders.

How you make money on Angle

You can earn yield by depositing collateral in the Angle Borrowing module to mint agEUR. You can choose to redeploy the newly minted agEUR across DeFi for additional yield or simply deposit into the Angle Savings system to earn yield directly from the protocol's revenues. This yield is generated from yield-bearing collateral assets held in the Transmuter, interest rates paid by borrowers, and transaction fees and incentives from the direct deposit modules.

Angle Pools
Angle EUR Fee Sharing
7%
Yield
$6M
TVL
Risk
A
Protocol
Angle
Chain
Ethereum
Angle USD Fee Sharing
18.7%
Yield
$4M
TVL
Risk
A
Protocol
Angle
Chain
Ethereum