How does Angle Protocol's V2 protect from Black Swan events like USDC & USDT depegging?

A deep dive into Angle's recently released Version 2

While the most popular stable coins like USDC & USDT are backed by USD, agEUR is an EURO based stablecoin.

agEUR is backed by a variety of assets and provides much needed diversification for investors who are overexposed to USD. Some important assets of agEUR reserves:

Angle Version 2 brings more diversified assets, including bC3M, a tokenized short-term and risk-free Euro bonds ETF from @BackedFi.

From September,agEUR holders can stake their agEUR to earn a risk-free yield. More on bC3M:

Angle V2 is made on two principles:

• Diversity and Robustness

• Fairness

Diversity and Robustness

As we already saw Angle V2 reserves consists of a variety of assets like wETH, wBTC, other Euro stablecoins and short term liquid Euro tokenized bonds. Target weights are set for the assets to avoid over-exposure to a single asset.

Fairness

Lets say if there are two assets in the reserves and asset 2 collapses because of a black swan event.

agEUR investors can,

♦ redeem agEUR for 50% of asset 1 and 50% of asset 2

(or)

♦ burn agEUR to acquire one asset of any of the assets in the reserves with a fee.

In the case of black swan events, such a stablecoin infrastructure introduces fairness where some people won't be able to rush and redeem agEUR against "solid" assets, leaving collapsed assets to other holders.

Below pic explains what happens if one asset loses its value:

Use Cases

agEUR is the most traded and most liquid Euro stable coin that can help you diversify from USD backed coins. Apart from this Angle V2 has several other Use Cases:

♦️ agEUR Borrow with leverage

♦️ Concentrated Earn with Merkl

♦️ stagEUR (available in September)

agEUR Borrow with leverage

Angle allows its users to borrow agEUR against their crypto assets with leverage, in one click.

Users can borrow agEUR with a variety of assets like staked ETH, wBTC, wETH, staked tokens on Curve or Convex, etc. Some of the assets to borrow with:

Concentrated Earn with Merkl

Angle's incentive platform lists the best opportunities to provide liquidity in concentrated liquidity pools and earn high rewards.

Projects can use this platform to make a smart distribution of their incentives on concentrated liquidity pools.

stagEUR

StagEUr allows agEUR holders to earn a risk-free yield by staking their agEUR. This product is being built and will be released in September.

Transmuter

Transmuter provides the Minting functionalities to Angle. It consists of a basket of assets that can be used to mint or burn agEUR.

Transmuter supports three actions: Mint, burn, & redeem.

♦️ Mint: To mint agEUR at Oracle value with the Angle supported assets.

♦️ Burn: Users can burn Stablecoins at oracle value for any of the assets in the backing with adaptive fees.

♦️ Redeem: Users can redeem Stablecoins against the proportional amount of each backed asset.

Conclusion

Angle V2 provides diversification and resilience in the case of extreme volatility for stablecoin holders. The Angle team is also working on providing risk-free yield for agEUR stakers.This shows Angle is working continuously on new products for benefit of users.