What is Angle Protocol?

Stablecoins have become a cornerstone of decentralized finance (DeFi). They help users avoid crypto volatility and are essential for payments and treasury management. But most leading stablecoins, like USDT or USDC, rely on centralized reserves controlled by private companies.

Angle Protocol, launched in 2021, was designed as a decentralized European alternative. It issues stablecoins backed by collateral, with its most famous being agEUR, pegged to the euro.

Angle stands out for its resilience, flexibility, and European positioning, making it a strategic player in the DeFi landscape.

How Angle Protocol works

Angle is built as a stablecoin infrastructure with key components:

1. Native stablecoins 💶
   The flagship is agEUR, pegged to the euro and minted through on-chain collateral rather than centralized reserves.
2. Collateralization 🔒
   Users deposit assets like ETH, wBTC, or other stablecoins to mint agEUR. These assets back the system and ensure stability.
3. Hedging modules 🛡️
   Financial mechanisms absorb volatility and maintain agEUR’s peg to the euro.
4. Community governance 🗳️
   Governed by a DAO, Angle allows ANGLE token holders to vote on strategic upgrades.

This structure ensures agEUR’s stability while keeping the protocol fully decentralized.

Why Angle Protocol is unique

Angle differs from other projects for several reasons:

• European focus 🌍
  While most stablecoins are dollar-based, Angle brings a euro-pegged solution, valuable for European users.
• Multi-collateral design 💡
  agEUR can be minted using different assets, increasing protocol resilience.
• Modular infrastructure 🔗
  Angle is not limited to agEUR; it can support other fiat-pegged stablecoins in the future.
• On-chain transparency 🛡️
  Reserves are visible on-chain, unlike centralized stablecoins, boosting trust.

Use cases for individuals and businesses

Angle offers practical benefits for both individuals and enterprises:

• Individuals:
  • Save in euro-denominated stablecoins.
  • Use agEUR for stable payments in DeFi.
  • Access yield strategies by depositing collateral.
• Businesses:
  • Manage euro-based treasuries with agEUR.
  • Reduce reliance on USD for international operations.
  • Access decentralized financing via DeFi integrations.

This makes Angle a gateway between European finance and global DeFi.

Risks and limitations

Like all DeFi projects, Angle has challenges:

• Market risk: collateral value drops could destabilize the peg.
• Technical risk: smart contract vulnerabilities may exist despite audits.
• Adoption limits: agEUR remains smaller compared to USD-pegged stablecoins.
• Competition: rival projects could propose similar euro stablecoins.

Despite these risks, Angle is among the most promising initiatives to give DeFi a European dimension.

Conclusion

Angle Protocol is a breakthrough for DeFi. By offering a decentralized, transparent, euro-backed stablecoin, it challenges the dominance of dollar stablecoins.

For both individuals and enterprises, Angle unlocks new opportunities: payments, euro savings, treasury management, and diversification.

In a world where regulation and financial stability matter more than ever, Angle represents a major step toward a more balanced, European-focused DeFi.

Frequently asked 🤔

What is agEUR?

agEUR is Angle Protocol’s native stablecoin, pegged to the euro and backed by on-chain collateral deposits.

How is agEUR different from USDC/USDT?

Unlike USDC or USDT, issued by centralized companies, agEUR is fully decentralized and transparently collateralized on-chain. This reduces censorship risk and improves trust.

How does governance work in Angle?

Governance is DAO-based. ANGLE token holders vote on upgrades such as new collaterals or added functionalities.

Is Angle Protocol secure?

Yes. Angle has undergone audits, and its reserves are visible on-chain. Still, like all DeFi protocols, it faces risks from smart contracts and collateral volatility.

Who can use Angle Protocol?

Anyone. Individuals use agEUR for savings or payments, while businesses leverage it to diversify treasuries and reduce dollar reliance.