The Angle Protocol offers investment opportunities for different kinds of actors. The protocol brings together:
- Stable Seekers: Actors looking to exchange a certain collateral token into a stable asset and back at the current market rate
- Hedging Agents: Actors looking for a perpetual future in order to increase the leverage on their collateral
- Standard Liquidity Providers: Actors looking to increase the interest earned by their collateral
The Angle Protocol issues three kinds of tokens:
- Stablecoins such as e.g. AgEur
- SanTokens for Standard Liquidity Providers representing their contribution
- Perpetuals which are technically NFTs
For each Stablecoin (e.g. AgEUR) a StableMaster is deployed. For each StableMaster the supported collaterals can be added individually. For each collateral of a StableMaster, a SanToken and a PerpetualManager are deployed.
Such a market issuing stablecoins must be collateralized at all times. Hedging Agents cover the collateral brought by stable seekers against price decrease. As no perfect match will exist at any time given, standard liquidity providers add additional liquidity in form of collateral while being able to earn interest accrued by the whole amount of this collateral held by this stablemarket. Variable fees play a vital role in the system. Overall the demand between the participants should be balanced for the system to work properly. To achieve this, the fees depend on the current state of the system. Actions balancing the system are cheaper compared to actions bringing the system into an even more unbalanced state where the fees increase accordingly. Many parameters exist for the governance to fine tune the fees system. For the proper working of the system the correct choice of these incentives is vital.
The system is governed by a DAO. Most contracts are upgradable through a proxy pattern.