A list of words and terms relating to the Angle Protocol
Some terms used throughout the documentation may be unfamiliar to our readers. Below, we list some common terms that will help you with your understanding.
If you still have some questions, or need some support, please do not hesitate to reach out on the Angle community Discord server ๐Ÿ•น๏ธ.
Cryptocurrency asset (USDC, DAI, wETH, wBTC, ...) held in reserves supporting the value of the stablecoins issued by the protocol.
๐Ÿ’ฑ Userโ€‹
Someone using the protocol to get stablecoins from collateral or to redeem collateral from stablecoins. This is sometimes used interchangeably with the terms stable seeker (for someone willing to get stablecoins) or stable holder (for someone owning Angle's stablecoins).
๐Ÿ›ก๏ธ Hedging Agent (HA)โ€‹
Stakeholder of Angle's protocol helping to hedge it against price volatility of the accepted collaterals. Hedging Agents get long leveraged positions through perpetual futures from Angle, actually hedging the protocol in case of a decrease in price of the collateral.
The third type of stakeholders involved in the protocol are called SLPs. They bring additional collateral to the protocol, and get yield and transaction fees in exchange. They are here as a buffer for when Hedging Agents do not cover all the collateral brought by users. In short, they are insuring the protocol against the risk of not having enough HAs positions.
โ€‹Collateral Ratioโ€‹
Ratio between the total value of collateral backing a stablecoin, and the total supply of this stablecoin. The value of the collateral is expressed in the related stablecoin.
โ€‹Total Hedged Amountโ€‹
It refers, for a given collateral/stablecoin pair, to the sum of the amount of stablecoins hedged by HAs. If there is one HA hedging 2 wETH from the protocol that entered when 1 ETH was worth 2000$, then this HA covers 2 * 2000 = 4000$ of stablecoins for the protocol, and the total hedge amount by HAs for the wETH collateral is 4000 agUSD.
โ€‹Target Hedge Ratioโ€‹
Target proportion of stablecoins issued using a specific collateral that needs to be hedged by HAs. Above this target ratio, HAs cannot open new positions on this collateral/stablecoin pair.
โ€‹Limit Hedge Ratioโ€‹
Max proportion of stablecoins issued using a specific collateral that that needs to be hedged by HAs. If HAs start hedging more than this ratio because of users burning stablecoins, their positions can be automatically cashed out by keepers.
โ€‹Hedge Ratioโ€‹
Ratio between the total hedged amount (in stablecoins) of a collateral, and the total value of agTokens issued through this collateral.
Hedge Curve
A hedge curve refers to a curve that defines the value of transaction fees as a function of the hedge ratio. There are different hedge curves involved in the protocol, and they are piecewise linear functions. For mint fees for example, the higher the coverage ratio is, the more minting fees decrease for stable seekers.
๐Ÿ”ฎ Perpetual Futuresโ€‹
Contracts taken by HAs in the protocol, to non-optionally buy a given collateral at an unspecified point in the future. Perpetual futures are financial instruments that try to follow the price of an underlying, and are used by traders to take leveraged positions. More details about such products can be found here.
Interests Accumulated
For a given collateral/stablecoin pair, it refers to the transaction fees and yield from lending that have been redistributed in the corresponding pool. Not all interests accumulated by a pool are distributed to SLPs, a portion directly goes to the protocol's surplus.
Tokens representing Angle stablecoins. They can be minted or burnt by swapping with a whitelisted collateral. Tokens start with ag followed by the asset to which they are pegged to, like agEUR or agUSD. Ag stands for Angle.
Angle LP Tokens distributed to SLPs bringing collateral to the protocol for a given stablecoin/collateral pair. These tokens share some similarities with Compound's cTokens. sanDAI_EUR are for instance the tokens given to SLPs bringing liquidity to the DAI/agEUR pair. These tokens can be exchanged back at any point in time against collateral at an exchange rate that varies in function of the interests accumulated. They are ERC20 tokens that automatically accrue yield.
๐Ÿ“ˆ Strategyโ€‹
Smart contract defining strategies to earn yield from Angle collateral reserves for each stablecoin/collateral pair. They can involve lending to platforms like Aave or Compound, and are inspired by Yearn vaults strategies.
๐Ÿ’น Debt Ratioโ€‹
For a strategy used for a stablecoin/collateral pool, it refers to the ratio between how much of a collateral is deployed in a strategy and the total amount of collateral tied to the pool the strategy relates to. This total amount includes the amount in the contract corresponding to the pool and the sum of the amounts given to related strategies. Each strategy of the protocol has a target debt ratio.
๐Ÿญ Keeperโ€‹
A keeper is an individual or a bot that carries out actions that are needed to keep the protocol functioning. They are usually incentivized to perform such actions. Angle Protocol uses different types of keepers.
๐Ÿ”ฑ Oracleโ€‹
Oracles are third-party services that allow smart contracts within blockchains to receive external data from outside of their ecosystem. They are mainly used to make cryptocurrency market prices available and usable on-chain. The protocol relies on Chainlink and Uniswap V3 TWAP oracles.
Last modified 4d ago
Copy link