The Multichain interoperability protocol has bridged Angle’s agEUR stablecoin from Ethereum to Fuse Network. It has also been listed on the Voltage DEX and trading has been activated on the FUSE / agEUR pool.
Stablecoins have been instrumental to the rise of the decentralized finance (DeFi) industry over the last two years. However, while Dollar-pegged stablecoins have dominated the stablecoin space, the demand for diversifying the exposure to the underlying fiat currencies has been rising.
Because of the stature of the European Union’s economy, Euro-pegged stablecoins are natural contenders for gaining an essential role in the industry. Hence, the Fuse team has been working to bring them over to the platform. Today, we are happy to introduce the first Euro-pegged stablecoin available on Fuse: the agEUR token created and maintained by Angle Protocol.
A capital-efficient decentralized stablecoin protocol
Angle Protocol (Angle) is a decentralized platform for issuing and managing stablecoins in a capital-efficient manner. After its launch on Ethereum, Angle has extended its stablecoins to other significant chains to become a robust multichain stablecoin platform.
Baskets of other crypto assets back the stablecoins issued by Angle and follow an overcollateralized model. In issuing and maintaining them, Angle relies on an elaborate setup involving 3 types of agents. Stable seekers emit or redeem stablecoins according to their needs. Hedging agents enter into long or short positions on the collateral/stablecoin pair depending on the volatility of the collateral. Finally, standard liquidity providers lend money to the protocol, which helps protect it against significant fluctuations.
agEUR is the first stablecoin operated by Angle. This month, it has become the largest EUR-pegged stablecoin by trading volume on decentralized exchanges (DEX’s). Since its launch, it has powered more than $500 million in DEX trades. Currently, agEUR is collateralized by US Dollar backed stablecoins, including USDC, DAI, FEI, and FRAX. ETH is likely to be added as a collateral asset soon.
Currently, agEUR minting does not rely on minters opening debt positions and providing redeemable collateral over the agEUR value they receive. Instead, the overcollateralized nature of the protocol is due to the standard liquidity providers. However, in the future, Angle plans to implement the collateralized debt position model and the current minting design.
ANGLE is the native token of the Angle platform. The community of ANGLE stakers governs angle. By locking ANGLE for a minimum of 1 year, they obtain veANGLE tokens to vote on protocol decisions. veANGLE holders receive part of the interest generated by depositing the Angle reserves into yield-generating DeFi protocols like Compound.
The ANGLE token is also used to reward protocol participants. For instance, standard liquidity providers are eligible for ANGLE rewards obtained in return for depositing their LP tokens into the rewards contract.
The Angle team is working on achieving wider adoption through its multichain and yield strategies and, for instance, through activating convenient fiat on- and off-ramps. Creating other stablecoins in addition to agEUR is also in the pipeline.
agEUR is now on Fuse
The agEUR stablecoin has been bridged to Fuse Network from the Ethereum mainnet using the Multichain (previously Anyswap) interoperability platform. It becomes the first Euro-pegged stablecoin available for the Fuse ecosystem.
agEUR has also been listed on Voltage DEX, and trading has been opened on the FUSE / agEUR pair. A liquidity rewards program to incentivize liquidity on the pool has also been launched, and it currently offers yield farmers an 81% APY in addition to a share of the trading fees.
Fuse and Angle will also continue working on extending the collaboration between our projects in the future. Stay tuned for additional announcements.
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