- Collateral Name (and symbol): agEUR (agEUR)
- Collateral Short Description: agEUR is a decentralized Euro stablecoin. It is the biggest and the most liquid one in the market. It can be issued from the Angle Protocol in a capital-efficient way and at oracle value using stablecoins like USDC, DAI, FEI and FRAX. The protocol relies on two different types of liquidity providers to make sure the stablecoin remains convertible against collateral
- Total Value in Circulation: Around $165m
- Total Value on Solana: Less than $1m, agEUR makes up the first Euro pool on Saber and is looking to actively expand on Solana, thanks to integrations in other protocols like Jet. It’s the first Euro stablecoin on Solana, together with cEUR
- Price Oracle Feeds: Pyth EUR/USD. agEUR has a hard peg, it is used by other euro stablecoins to maintain their peg on Curve.
The proposal is to onboard agEUR on Jet Protocol. Currently most ways to get yield in DeFi are through USD stablecoins. This means that when you are in Europe and your home currency is the Euro you are exposed to a change risk.
Having agEUR as a collateral on Jet would basically allow people to get yield on Euros, but also to get leveraged while caring about the variation of the price they are looking to in Euro.
The stablecoin is infinitely liquid and it can be easily bridged using the Wormhole from Ethereum to Solana, meaning that if there is a high demand for it, people could easily mint in Ethereum, bridge from Ethereum to Solana and take profit from the arbitrage opportunities on Solana
The use cases here are quite obvious:
- For people using it as a collateral: get yield on Euros and not on dollars
- For people borrowing it: leverage their volatile crypto to own some agEUR which are stable to get other DeFi opportunities, or swap these agEUR for volatile crypto in order to get leveraged on the Euro variation of the price of the asset they are using as collateral
- Total Value In Circulation: $165m
- Total Value Locked: $220m
- Age of Asset: 2 months
- Technical Risk: The protocol has been audited by two different audit companies, so there is always a smart contract risk but everything has been done to mitigate it
- Counterparty Risk: agEUR is backed by USD stablecoins and it is over-collateralized by two kinds of agents: hedging agents opening perpetual futures on the price variation of USD with respect to the Euro and standard liquidity providers over-collateralizing the protocol. In case of protocol failure where agEUR would not be redeemable, the protocol has safety modules it can activate.
- Liquidity Risk: Liquidity is quite low for agEUR on Solana at the moment but this is being worked on as integrations with protocols help to solve chicken and egg problem.
- Price Feed Risk: Using a EUR/USD price feed for agEUR could be a bit risky if there came to be price deviations of agEUR on Solana or on Ethereum, but given that agEUR can be minted/burnt at oracle value, this would not last long as arbitrageurs could directly profit from
- Bridge Risk: agEUR is bridged using the WormholeV2, this induces a small risk for agEUR on Solana