Fuse Partners with Angle to Bring the agEUR Stablecoin to the Ecosystem
Angle’s agEUR stablecoin has been bridged from Ethereum to Fuse Network via the Multichain interoperability protocol. 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 the stablecoin space has so far been dominated by US Dollar-pegged stablecoins, the demand has clearly been rising for diversifying the exposure to the underlying fiat currencies.
Because of the stature of the European Union’s economy, Euro-pegged stablecoins are natural contenders for gaining an important 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 initial launch on Ethereum, Angle has been extending its stablecoins to other major chains in a bid to become a robustly multichain stablecoin platform.
The stablecoins issued by Angle are backed by baskets of other cryptoassets 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 major 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 already 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.
At present, agEUR minting does not in itself rely on minters opening debt positions and providing redeemable collateral in excess of the agEUR value they receive. Rather, the overcollateralized nature of the protocol is due to the standard liquidity providers. However, in the future, Angle is planning to also implement the collateralized debt position model in addition to the current minting design.
ANGLE is the native token of the Angle platform. Angle is governed by the community of ANGLE stakers. By locking ANGLE for a minimum of 1 year, they obtain veANGLE tokens enabling them 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 not only through its multichain and yield strategies but also, for instance, through activating convenient fiat on- and off-ramps. The creation of 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 a 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 the additional announcements.
