veANGLWhat is Angle Protocol? What is ANGLE and veANGLE token?
Angle Protocol has been up & running for more than three months already. During that time, Angle got stress tested with some market action, agEUR became one of the biggest € stablecoins, and the tokenomics were upgraded to the famous voting-escrowed model!
So what is Angle Protocol? What is special about the protocol and operation of the project? Learn about ANGLE Token’s tokenomics with GC Guide Community right here!!!
Angle aims to open a new era in DeFi. So far, most DeFi and stablecoin solutions have been Dollar centered. This has many undesirable effects for people which home currency is not the Dollar.
Angle’s mission is to provide open access to financial products to people around the world. So this protocol will start with the first stable and reliable launch of Euro (agEUR) on Ethereum. The next plan is to roll out the USD stablecoin and make the fiat stablecoin available to other regions that are heavily DeFi-related but underserved in terms of stablecoins, including the Swiss Franc, British Pound, Japanese Yen or Won. Korean. Angle will also create other non-fiat-pegged stable assets like Index or Gold, Silver, etc. And in this article we will learn more about this protocol!
What is Angle Protocol?
Angle is a capital-efficient, over-collateralized and liquid decentralized stablecoin protocol. Angle Protocol could be used to issue any stablecoin. and has started on mainnet with agEUR, a Euro stablecoin. Besides creating the first liquid Euro stablecoin, the goal of Angle is to create stablecoins for other types of assets.
Stable CHF, GBP, JPY and KRW should be following agEUR.
It offers full convertibility between stable assets and collateral at oracle value: you can swap 1 of collateral against 1 of stablecoin and conversely.
This makes the protocol both capital efficient and highly liquid.
The protocol involves 3 agents, very common in other DeFi protocols, which all bring something to Angle, while benefitting from the protocol:
- Stable Seekers and Holders (or Users): Those who will mint, use, or burn stable assets.
- Hedging Agents (HA): Those who can get onchain leverage in the form of perpetual futures in just one transaction from the protocol. This will secure the protocol against collateral volatility.
- Standard Liquidity Providers (SLP): Those who bring additional collateral to the protocol and automatically earn interest on transaction fees and rewards.
Highlights of Angle Protocol (ANGLE)
Angle Protocol has been launching the Mainnet for over 3 months and has attracted over $240M TVL and agEUR has a supply of over $140M. Angle shows its great potential and appeal to users looking for stable profits. So, right now we will find out the highlights of Angle Protocol that help it attract users!
Stablecoin EUR with best liquidity
Currently, users can use other stablecoins such as USDC or DAI to mint agEUR. In just a short time, agEUR has had a total supply of more than $140M and created massive liquidity for the platform.
For those who do not use USD-pegged stablecoins, such as those in Europe, the agEUR minted by Angle Protocol will be a currency that will help them resist the influence of exchange rates between 2 coins on effectively.
Design for capital optimization
The Angle protocol is designed to provide Over-Collateralization Loans, while ensuring efficiency for Under-Collateralized Assets.
First, you will need to understand the above two concepts, I will explain it simply as follows:
- Over-Collateralization: An over-mortgage loan offered by the lending platform.
For example: You deposit 100$, you will be able to borrow an amount smaller than the value of the collateral, which can be 80$.
- Under-Collateralized: Are assets with a value lower than the mortgage to borrow a certain amount of property equal to the mortgage level. The level of risk here will be higher for lenders. However, because Angle has designed this loan to go to borrowers with greater urgency.
For example: You deposit $100, you will get a loan BIGGER than the value of the collateral, which can be $120.
=> Therefore, Lenders bear a higher risk. However, it is guaranteed by Angle Protocol, so lenders will still receive high rewards and this also benefits the borrower.
Allows opening on-chain Forex positions with high leverage
Angle Protocol also allows users to open LONG on-chain positions for a supported collateral/stable pair (e.g. USD/EUR, where USD would be a collateralized stablecoin) with leverage up to 100x on Ethereum network.
You can look at this overall from a macroeconomic perspective. For example, Europe is having good news coming up while the US is having bad news about a sharp drop in exports.
From there, you assume the price of the EUR will increase and the USD will decrease, and you bet on a Long position agEUR/USD (using DAI or USDC to collateralize the mint to agEUR).
Profits from mortgages
To over-collateralize on the protocol, you can deposit tokens into Angle Protocol and receive equivalent LP Tokens in the form of “sanTokens”.
This type of tokens will accumulate profits from transaction fees, profit-making strategies from reserve funds. APY ratio of holding “sanTokens” can be greater than APY rate of return on 3 platforms AAVE, Compound or Yearn.
Angle Protocol Token Information (ANGLE — veANGLE — agTOKEN)
Key Metrics ANGLE & veANGLE
Angle Protocol Token (ANGLE) is a governance token serving the governance purposes of Angle Protocol. However, since January 2022, ANGLE’s tokenomics has been upgraded and the ability to lock ANGLE into veANGLE, similarly than with CRV/veCRV or FXS/veFXS, has been introduced.
Basic information about Angle Protocol Token:
- Token Name: Angle Protocol Token
- Ticker: ANGLE
- Blockchain: Ethereum.
- Token Standard: ERC-20.
- Contract: 0x31429d1856ad1377a8a0079410b297e1a9e214c2
- Token Type: Governance..
- Total Supply: 1,000,000,000 ANGLE .
- Circulating Supply: Updating…
Basic information about veANGLE Token:
Currently, ANGLE Holders can lock their ANGLE tokens from 1 week to 4 years to receive veANGLE tokens. Like in the Curve system, veANGLE allows:
- vote on Angle improvement proposals
- vote for where ANGLE emissions should go
- a share of the interests generated by the protocol
- a boost when staking in Angle’s contracts
How to get veANGLE?
- Lock ANGLE to get veANGLE
- Allocate their veANGLE voting power on gauges for next week’s rewards: rewards voted by veANGLE holders will start being distributed on the 20th of January
- Migrate their liquidity if they need to (more info below)
- Claim their share of the interest generated by the protocol: if you get veANGLE before the 20th of January, you should get your first rewards on the 27th of January distributed under the form of sanUSDC_EUR tokens! Based on current data, $90k worth of interest will be given each week to veANGLE holders. Current veANGLE APR is 12547.79 %.
ANGLE Token Allocation
A total of 1,000,000,000 ANGLE will be distributed proportionally to the total supply as follows:
- Liquidity Mining: 40% of tokens are being distributed through staking contracts for agTokens holders, HAs, SLPs. LPs on other external pools are also being incentivized.
- DAO Treasury: 20% of the tokens are controlled by the DAO Treasury: the DAO will be able to vote for how and where to allocate these tokens.
- Grants and Partnerships:12% of the initial ANGLE are held by the Core Team in a multi-sig. These tokens are available for distribution to the Community as grants or bug bounties, to strategic partners like exchanges for listing, but also to the most active and helpful community members as well as to advisors helping the protocol grow.
- Core Teams (18%) — Early Backers (10%): Tokens subject to a 3 years linear vesting, to make sure that the core team and early backers remain fully committed to the protocol and the community. With this vesting schedule, liquidity distributed through liquidity mining to the Community is guaranteed to be bigger than that going to team and early backers.
How to earn and own ANGLE Token
To own ANGLE tokens, you can:
- Since the project allocates almost 40% for liquidity mining , you can mint assets to agTOKEN to get more ANGLE Tokens.
- In addition, you can buy ANGLE on AMM DEX on ERC20 network like Uniswap, 1inch, Matcha, SushiSwap, Coin98 Exchange or Gate.io exchange.
- If you hold agEUR, sanTokens can stake to receive ANGLE Tokens.
Roadmap & Updates
Team, Investors & Partners
There are now more than 8 investors in Angle Protocol with a total value of this Seed round up to 5 million USD, led by Andreessen Horowitz (a16z), this is probably the best known investment fund and performace when their investment is also relatively stable.
In addition to Andreesen Horowitz, several world-class investors include Fabric VC , Wintermute , Divergence Ventures , Global Founders Capital , Alven , Julien Bouteloup and Frédéric Montagnon.
Angle Protocol is currently cooperating with 3 partners including Wintermute, Immunefi and CEX Gate.io exchange. In there:
- Immunefi: Will be a partner on detecting bugs to reward project contributors.
- Gate.io Exchange: Will be a partner to support list tokens for Angle Protocol.
Angle Protocol is similar to DAOMaker, but with some differences like Angle allows minting more stablecoins, using different types of assets as collateral, and has an efficient use of capital.
This is an article to share all information about Angle Protocol so that everyone can learn more about the project and have their own opinions. Hopefully this article will help readers gain more value.