Angle Protocol on Ethereum - A Quick Overview

    In this dashboard, we will review the usage of the Angle protocol in the Ethereum blockchain and see what the user community looks like, review the trading volume of the main token, agEUR, over time and see what users are doing with their agEUR tokens.

    Angle Protocol

    Angle is an over-collateralized, decentralized and capital-efficient stablecoin protocol. Angle is a protocol designed to issue stablecoins pegged to potentially any value.

    > Angle Protocol is a novel stablecoin framework that achieves price stability and collateralisation while maximising capital efficiency. The protocol achieves stability by transferring collateral volatility to third party users seeking leveraged long exposure with no funding rates. Their current stablecoin is agEUR, showing resilient price stability compared to its EURO stablecoin counterparts. > > -source-

    Angle Protocol allows users to mint and burn stablecoins (agTokens) at a 1:1 rate against crypto-assets accepted as collateral. On the other side, the protocol leverages perpetuals traders to hedge the value of its reserves, so that issued stablecoins are always fully backed. Liquidity Providers can also come in and deposit additional collateral as reserves, allowing the protocol to be over-collateralized.

    It is deployed on the Ethereum blockchain, and will very shortly be expanded to other open and decentralized networks.The protocol has launched agEUR, the biggest decentralized Euro stablecoin in the market on Ethereum, Polygon, Optimism and Arbitrum.

    On top of its stablecoin product, Angle protocol also offers to its users ways to:

    • Trade perpetual futures

    • Earn yield from strategies

    • Get leverage on a wide range of assets

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    Angle has started with agEUR, a Euro (EUR - €) stablecoin ==.==

    In this dashboard we analyze the agEUR usage in Ethereum.

    LayerZero Bridge

    > We’re excited to announce that Angle has integrated with LayerZero’s cross-chain messaging solution to enable immediate and secure $agEUR bridging between Ethereum, Polygon, Optimism and Arbitrum. > > … As of today, users can bridge assets directly through Angle App agEUR between Ethereum, Optimism, Polygon and Arbitrum > > Aug 5, 2022 - blog.angle.money

    LayerZero is an omnichain interoperability protocol designed for lightweight message passing across chains. LayerZero provides authentic and guaranteed message delivery with configurable trustlessness

    LayerZero seeks to provide a solution to one of the most pressing issues that blockchain technology is facing today – interoperability.  It is an interoperability protocol that uses a novel technique to make it easier for different blockchain networks to connect with each other. (source)

    agEUR Intra-Chain Transfers on Ethereumusing Built-in Layer-Zero Bridge

    In the first step of this analysis, we will study the volume of agEUR transferred between Ethereum and L2 blockchains (EVM) using Layer-Zero's internal bridge to see how different users can easily transfer their capitals from/to mainnet to/from different blockchains by converting their tokens to agEUR.

    Doing this, they can easily use different DeFi apps in them.

    Picture : LayerZero Brige Page ion Angle .Money

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    Key Findings

    • The first thing that can be seen from the first part of the above charts is that the volume of agEUR transfer from Ethereum to layer 2 blockchains is much higher than the incoming volume. It seems that most angle protocol users keep their main assets in Ethereum and use various programs of L2 blockchains by minting agERU and transferring them to l2s, and possibly swapping them with tokens like USDC.

    • The number of users of the ANGLE protocol that used the cross-chain transmission of this protocol (the LayerZero layer), increased sharply in the last month (until November 20).

    • The main volume oftransfered agEUR is formed by the Optimism blockchain. About a million agEUR tokens (~ a million dollars) have been transferred to Optimism in recent months, which is not at all comparable to Arbitrum and Polygon, where we are talking about 30 thousand agERU.

    • Despite Optimism's absolute superiority in terms of volume of transfer through LeyerZero, the number of users using this protocol (LeyerZero) on the two blockchains, Arbiterum and Optimism, is not very different. It seems that a limited number of users have transferred a very large amount of agERU tokens on this platform, which has resulted in the amount of agERU sent to Optimism reaching one million.

      (As can be seen in the graphs above, one user has transferred about 400,000 agERUs to Optimism). This results in the overall average of transfers being very high (currently this number is around 4000, which is a relatively high and it is better to use the statistical median (that is 1000) instead).

    • The highest volume of received and sent agERU took place in July and August, and in the last months, namely in September and October, the transfer volume dropped below one hundred thousand . But in November,that at the current time only 20 days have passed, more than two hundred thousand agERUs were transferred. It seems that users have welcomed this platform again.

    • The average number of transfers per user is less than 2, which means that most users have used this protocol only once to transfer assets.

    agEUR Mint& Burn Analysis

    In the next step of this analysis, we will look at the volume of minting and burning the agEUR token in Ethereum. Currently, it is possible to mint agEUR with 5 tokens (as collateral): USDC, DAI, Frax , FEI and WETH.

    How to Get agEUR?

    • Exchange some tokens on DEXs like Uniswap to get agEUR
    • Deposit above 5 tokens into the corresponding vaults and receive agEUR based on the collateral ratio defined in ANGLE documentations.

    Let's explore this topic in detail.

    Key Findings

    • The first thing that comes to mind is the dominance of the USDC token in minting agEUR, meaning the vast majority of users use USDC Collateral to mint agEUR.

    • Most of the agERUs minted in Ethereum, that is, the vast majority of the loans taken, have been returned (burned) so that we currently have about 15 million agERU tokens in circulation in Ethereum.

      Of course, this number does not include tokens that have been transferred to Ethereum from other blockchains.

    • The difference between the average and the median in the mint process and production of agERU is very large. That is, in all Vaults , most users mint a very small volume, compared to a few people who minted a very large volume.

    • The volume of agERU mints has decreased sharply since April, right after the collapse of Terra that is down from 25 million in the first month of the year to about 5 million in recent months.

    • Due to the sharp drop in the price of cryptocurrencies at the beginning of November (FTX crisis) and the fear of collateral liquidation, the volume of agERU burning in this month showed a huge growth compared to the previous months.

    • At the end of last year (2021), the FEI was used for minting agERU, along with DAI and USDC, and in 2022 it almost withdrew from the minting process.

    • The largest amount of agERU was minted in November 2021, exactly one year ago. Around 200 million agERUs were minted that month, of which more than 85% were created with USDC collateral.

    • The total number of wallets that have minted agERU by providing crypto collateral is a little more than a thousand, which is a relatively small amount

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    Daily agEUR Swaps

    In the final step of the analysis, we will examine the number of swaps made to sell or buy the agEUR token on the Ethereum blockchain's main decentralized exchange, Uniswap.

    About the Analyzer

    Mojtaba Banaie


    Twitter : @CrytoLizr


    Linkedin : smbanaie


    Email: mojtaba.banaie@gmail.com


    Discord: smbanaie#5528


    Date of Analysis : 2022-11-18

    Takeaway

    • From the analysis and review of the Angle protocol data in Ethereum Mainnet, it appears that this protocol is gradually increasing its user community.
    • The agERU swap volume has remained almost constant in recent months, while the number of swappers has increased.
    • Nevertheless, the agERU circulation volume has decreased sharply due to the decrease in the mint volume of this token
    • It seems that there is a long way to go before the popularity of this platform among Ethereum users and a significant increase in it’s user base.
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    Work Description

    In this dashboard, we will examine the daily activity of the agEUR token on the Ethereum blockchain from the following three aspects:

    • The transfer rate of agEUR via the LayerZero protocol. to/from which L2s?

    • The amount of Mint (get a loan) and the amount of Burn (or repaying the loan).

    • The amount of daily swaps in Uniswap as the main DEX that supports agEUR on Ethereum.

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    By analyzing these aspects, we want to find out how the adoption of this token in Ethereum was among users and whether or not we see a certain trend in the behavior of Angle project users. Stay with us.

    In the second part of this analysis, which we will discuss in a separate dashboard, we examine the advanced topics of Angle protocol such as impact of HAs in this ecosystem and how to make a profit on the provided collateral. Things like what happens to the collateral of a user who cannot repay her/his loan due to market fluctuations? will be discussed later.

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    Key Findings

    • As can be seen from the diagrams above, only three tokens or three main pools are used for agERU swap: USDC, FRAX, and WETH. Of these, the main winner is USDC.

    • The average total volume of swap into agERU in 2022 has remained almost constant, although the volume of swap of FRAX and WETH into

      agERU has decreased in recent months, but with the help of USDC, the average monthly volume has not changed much.

    • The demand for swap into Ethereum has decreased significantly since August.

    • The total amount of swaps into agERU and swaps from agERU for the three tokens mentioned above is almost constant.

    • Despite the much larger volume of USDC than WETH in daily swaps, the number of swaps and the number of swappers have been almost the same or very similar in recent months for these two tokens.

    • Over 65,000 swaps traded approximately $1.5 billion in agERU-related liquidity pools, and swap volume has increased significantly since May and has continued to increase in recent months.

    • The number of FRAX swappers has declined significantly in recent months.