Angle
Angle is an over-collateralized, decentralized and capital-efficient stablecoin protocol. It offers full convertibility between stable assets and collateral at oracle value.
- Documentation
- Auditors
- Please see our FAQ on experienced auditors
- Website
- Token: ANGLE
- Tags: CDP
- TVL: $18.1M (Rank #114)
- TVL Ranking by CDP: #9
- Blockchain: Ethereum, Arbitrum, Polygon, Avalanche, Optimism
- Chain TVL
- Ethereum: $17.05M
- Arbitrum: $895.56K
- Polygon: $147.38K
- Avalanche: $40.59
- Optimism: $0
- Code reviewed by at least one experienced auditor; Chainsecurity audited three times
- Public team promotes accountability
- One unmitigated protocol hack since launch
- Solid controls to prevent oracle price manipulation
- Core protocol launched in 2021; maturity less than 1 year increases technical risk as smart contracts are less battle-tested
- Top 10% by total value locked reduces risk
- Decentralized governance increases transparency
- Low voting power concentration reduces risk
- No concerns identified
- Isolated markets enable asset risks to be contained to each individual pool without impacting the entire protocol
- Angle uses the same mechanism as Maker to create stablecoins by providing a volatile asset as collateral
How Angle works
The Angle Core Module relies on three core users: stablecoin seekers, hedging agents (HA), and standard liquidity providers (SLP). Stablecoin seekers are users who mint stablecoins by depositing collateral (redeem collateral by burning stablecoin). HAs get a leveraged position on a pair collateral/stablecoin in the form of perpetual futures. This insures the Core Module against the volatility of the collateral. HAs profit if the price of their deposited collateral increases relative to the value of the stablecoin, and assume losses if the price decreases (lose a portion of the collateral). SLPs deposit collateral to the Core Module and earn yield from protocol strategies and transaction fees. SLPs may face a small slippage when they exit if the Core Module is not well collateralized. The Core Module is designed to issue multiple stablecoins, provided there is an available oracle. Each stablecoin is independent of other stablecoins in the module, meaning the pools are isolated. The Angle Borrowing Module is another minting mechanism for Angle-based stablecoins. This module works in conjunction with the Core Module and agTokens. It is based on a similar debt mechanism to that of Maker with DAI. Users deposit tokens as collateral into Angle to mint (borrow) agTokens.
How Angle makes money
The Angle Core Module charges dynamic fees. For stablecoin seekers, there are mint/burn fees that vary around 0.3%. This fee also depends on how much of the collateral is covered by HAs. For HAs, there are opening/closing fees for perpetual swaps, which also vary around 0.3% and depend on how much of the collateral is covered already. The Angle Borrowing Module generates revenue (in stablecoins) from users borrowing stablecoins, from liquidations and flash loans. At the top level, the protocol charges users three different types of fees for borrowing agTokens: mint fee, stability fee, and repayment fee.
How you make money on Angle
You can earn yield by depositing collateral as either an HA or SLP in the Angle Core Module. HAs can make significant gains if the price increases as well as substantial losses if the collateral price drops. SLPs earn transaction fees from users minting and burning and the yield from reserves being redeposited into DeFi strategies like Yearn.
