What is Angle Protocol (EURA)?

TLDR
Angle Protocol (EURA) is a decentralized stablecoin protocol using over-collateralization and perpetual trading to maintain euro-pegged stability.

1. Euro stablecoin: EURA is a Euro-pegged agToken minted 1:1 against crypto collateral.
2. Hedged reserves: Uses perpetual traders to hedge collateral value, aiming for full backing.
3. High whale concentration: 98.83% of EURA supply held by whales, raising liquidity risks.

Deep Dive

1. Purpose & value proposition

Angle Protocol aims to create capital-efficient, decentralized stablecoins. EURA (agEUR) is its Euro-pegged offering, designed to maintain a 1:1 peg through:
- Over-collateralization: Users deposit crypto assets (e.g., ETH, wBTC) to mint EURA.
- Perpetual hedging: Traders take leveraged positions against collateral pools, theoretically offsetting price volatility.
- Liquidity incentives: Providers earn yield by adding collateral, enabling protocol over-collateralization.

This model contrasts with algorithmic stablecoins by emphasizing collateral backing over algorithmic supply adjustments.

2. Tokenomics & governance

• Supply: 27.06M EURA circulating (self-reported), with a $31.1M market cap.
• Concentration risk: Top 10 holders control 67.64% of supply (CoinMarketCap), while whale addresses (>1% supply) hold 98.83%.
• Price stability: Despite the 1:1 target, EURA trades at $1.15 (June 2025), suggesting either temporary demand spikes or peg maintenance challenges.

3. Pros & cons

Advantages
- Collateral diversification reduces single-asset risk.
- Perpetual trading mechanism theoretically stabilizes reserves.

Risks
- Extreme whale dominance could trigger volatility if large holders exit.
- Protocol relies on perpetual traders’ activity—low participation might weaken hedging.
- RSI-7 at 82.2 (overbought) signals potential short-term correction, unusual for a stablecoin.

Conclusion

Angle Protocol’s hybrid collateral/hedging model offers a novel stability approach, but EURA’s whale-driven supply and off-peg trading reveal adoption and liquidity hurdles. How might evolving EU crypto regulations impact EURA’s peg stability and institutional adoption?