Research Summary
The report discusses Angle’s stEUR, a decentralized stablecoin protocol that offers a 3.8% yield. The yield is generated from yield-bearing collateral assets and agEUR stablecoin borrowers’ interest payments. The protocol’s earnings come from tokenized Euro securities, European government debts, and stablecoin borrowing fees. The report also highlights the user-friendly nature of the Angle Savings Solution, its transparency, and its resilience.
Key Takeaways
Angle’s Innovative Approach to Savings
- Introduction of stEUR: Angle, known for its agEUR stablecoin, has introduced a new feature called the Angle Savings Solution or stEUR. This innovative approach to savings automatically allocates a portion of the yield generated from borrowers of the stablecoin and yield-bearing collateral assets to stablecoin holders.
- Yield and Appreciation: Since its launch in November, stEUR has consistently appreciated in value and currently offers a 3.8% yield. This transparent saving solution ensures that all generated yield is visible and accountable to the public.
Transparency and Security of Earnings
- Yield Sources: The protocol’s earnings stem from yield-bearing collateral assets, including tokenized Euro securities and European government debts, as well as stablecoin borrowing fees. This foundation creates a robust basis for the Angle Savings Solution, offering users complete transparency and security regarding their earnings.
- Resilience and Risk: The risk associated with participating in the Angle Savings Solution is akin to owning agEUR. Thanks to accumulated revenue, agEUR has established itself as a safe asset with a substantial equity buffer, as evidenced on the balance sheet.
User-friendly and Efficient Experience
- Easy-to-use Solution: The Angle Saving Solution is designed to be user-friendly, providing an easy-to-use, transparent, and resilient earning solution. Users can deposit agEUR, which is then converted to stEUR, allowing them to start earning yield immediately. With no fees or lockup periods, users can withdraw their funds at any time, earning yield proportionate to the duration of their deposit.
- One-click Swapping Feature: For those without agEUR, Angle has integrated a one-click swapping feature. Users can swap any token for agEUR, which is then automatically staked. This feature is available on Ethereum, Arbitrum, and Gnosis Chain, ensuring a seamless and efficient experience with minimal gas fees.
Alternative to Traditional Financial Products
- Higher Yield: The Angle Savings Solution offers a compelling alternative to traditional financial products and USD yield solutions, offering a higher yield than the current risk-free rate in the Eurozone. It’s not just for DeFi enthusiasts but also for the broader European community, providing access to transparent and resilient financial products typically reserved for a professional elite, but in a permissionless manner.
Actionable Insights
- Consider the Potential of stEUR: Given its consistent appreciation and 3.8% yield, stEUR presents a compelling opportunity for those interested in earning from their assets. Its transparency and security make it a viable alternative to traditional financial products.
- Explore the User-friendly Features: The Angle Savings Solution’s user-friendly nature, including its one-click swapping feature and the absence of fees or lockup periods, could make it an attractive option for those new to DeFi or those looking for a seamless and efficient experience.
- Understand the Risk Profile: The risk associated with participating in the Angle Savings Solution is akin to owning agEUR. Potential users should understand this risk profile before deciding to participate.
