Angle’s Value Proposition For Hedging Agents
Angle Protocol allows traders to open leverage long positions on forex and crypto/fiat pairs. They are called Hedging Agents within the protocol, as their long positions hedge the protocol’s collateral from price variations. This is thanks to them that the protocol can safely back the stablecoins issued and sustain the 1:1 convertibility between stablecoins and collateral.
In this article, we present how being a Hedging Agent can be interesting if you are a trader looking for leverage.
TL;DR:
- Opening long-term leverage long positions without funding fees.
- Up to x100 leverage for forex pairs, and x10 for crypto-fiat ones.
- Earning ANGLE governance tokens on top of positions.
Opening leverage long positions without funding fees in one tx
The main advantage of opening positions with Angle is that there is no funding fee. Perpetuals futures or margin traders usually pay a recurring fee to maintain their positions. Depending on market conditions, it can go up to 0.3%/day, which is more than 100%/year.
That makes maintaining a long position for a long time very costly. With Angle, maintaining your positions is much cheaper, potentially allowing to hold them longer than on other exchanges.
Another advantage is that you can open & close these positions in only one transaction, compared to at least a few to get leverage on Aave, Maker or Compound. As for the funding fee, there is no borrowing rate either when getting leverage on Angle.
Dynamic Opening and Closing Fees
The only fees when trading with Angle are opening and closing fees. They are dynamic depending on the state of the protocol, and need to be paid only once each.
Up to x100 leverage on forex pairs, and x10 on more volatile tokens
Angle also introduces on-chain leverage trading on forex pairs, with up to x100 leverage. Users will now be able to hedge their currency exposure the way they want to.
More volatile tokens will have a maximum leverage of x10.
Earning yield on top of your positions
By covering the protocol, Hedging Agents play a key role and should be rewarded accordingly. They receive ANGLE governance tokens rewards on top of their positions, giving them additional incentives to open positions and hedge the protocol.
Join the Playground and Become a HA on Rinkeby
You can now test our app on Rinkeby! This will give you a glimpse of Angle’s experience for Hedging Agents.
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