Angle Protocol Security Audit

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Summary

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.

About Angle Protocol

“Angle is the first over-collateralized, decentralized and capital-efficient stablecoin protocol. Thanks to the liquidity providers it uses, the protocol proposes full convertibility between stable assets and collateral, meaning that it is possible to swap collateral against stable assets, and stable assets against collateral at oracle value. This makes the protocol not only capital efficient but also highly liquid.

Angle Protocol could be used to issue any stablecoin, and will start at launch on mainnet with a stable Euro. Besides creating the first liquid Euro stablecoin, the goal of Angle is to create stablecoins for almost all Forex currencies, including the US Dollar.”

Source: https://docs.angle.money/whitepaper

Chainsecurity did not only run a thorough static analysis of our code like a normal auditor would do, but they also made the effort to understand the Angle protocol as a whole, helping us make our code safer and our protocol more efficient!
They were the perfect partner for us building a highly complex system!
Pablo Veyrat, Core Contributor @ Angle Protocol