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Borrow

How to borrow Angle stablecoins from the Angle App
The Angle Borrowing module lets you borrow Angle stablecoins like agEUR from crypto collateral on different chains.
Essentially, you open a vault with a specific token as collateral, and can get a stablecoin loan in exchange. If the value of the vault collateral goes below a certain amount compared to the value of your loan, you can get liquidated.
When opening a vault, you can deposit any token and it will be automatically swapped into the selected vault collateral. When borrowing a stablecoin, you can directly swap the borrowed stablecoin into more of the token originally used as collateral to get leverage. All of this is done in the same transaction.
Learn more about the mechanisms here.
The borrowing page functionalities are the same whether you're coming it to it for agEUR or another stablecoin. In this guide, we specifically look at agEUR borrowing use cases, but anything that is true for agEUR holds for others.

Add Collateral & Borrow

To borrow an Angle stablecoin, you need to deposit collateral tokens into a vault. Different vaults accept different tokens which have their specific loan-to-value (LTV). This means that you are able to borrow up to a certain amount of stablecoins from the amount deposited.
For example, wETH LTV at 84% on Optimism for agEUR means that if you deposit 1,000 € worth of wETH on Optimism, you can borrow up to 840 agEUR from this vault.
You can deposit any token you want in the app, and it will be swapped to the collateral token of the selected vault. You can also borrow a stablecoin in the same transaction that you deposit collateral to your vault. Once a vault is created, it is possible to deposit more collateral without borrowing more stablecoins, and the other way around.
Here are the steps to follow to deposit collateral and borrow agTokens:
  1. 1.
    Go to the Borrow section of the app and choose the network on which you want to open your vault
  2. 2.
    Select the type of vault to create, defined by the collateral and stablecoin token and click on borrow
  3. 3.
    Then, select the token and amount you want to deposit in the first input. If the token is different from the vault collateral, the former will automatically be swapped to the latter.
  4. 4.
    Enter the amount of stablecoins you want to borrow in the second input.
  5. 5.
    Click on the bottom right button to send your transaction. You can also simulate the transaction before confirming it. If your transaction requires a wrapping, you'll need to sign a permit for the router contract to interact with your vault and perform the desired transaction.
In the below example, 200 DAI are swapped to ~0.15 wETH to be deposited as collateral in the vault, and 50 agEUR are borrowed.
Add/Borrow agEUR
A summary of the changes on your vault and wallet is displayed on the right. You can access all the steps of the transaction by clicking on the Transaction Details dropdown.
Note that once a vault is opened, you can monitor its health and status from the main Borrow page. From there, you can also choose to add collateral or borrow more from it. To do this just click on the Add / Borrow button of your opened vault.
Vaults list

Leverage

When using the borrow section of the app, you can, in a single transaction, borrow stablecoins like agEUR and directly swap them into more of the token originally used as collateral to leverage your exposition.
To do this, when selecting the type of vault to create, click on leverage. Then:
  1. 1.
    Select the token and amount you want to deposit in the first input. If the token is different from the vault collateral, the former will automatically be swapped to the latter.
  2. 2.
    Enter the amount of additional exposure of collateral you want in the second input.
  3. 3.
    Click on the bottom right button to send your transaction. You can also simulate the transaction before confirming it. If your transaction requires a wrapping, you'll need to sign a permit for the router contract to interact with your vault and perform the desired transaction.
In this example, a user deposits 20 FRAX in an LUSD vault, and ask for 40 LUSD of additional exposure. In the background, the 20 FRAX are swapped to LUSD and enough agEUR to buy 40 LUSD tokens are borrowed from the vault and swapped to LUSD. The user USD exposure goes from 20 to 60.
After the operation, this vault would have 60 LUSD as collateral and ~38.23 agEUR of debt.
Leverage with LUSD

Using a yield-bearing asset as collateral to borrow

Some vaults have collateral tokens that earn a return for holders, like staked Curve LP tokens.
Using these allow you to get paid while borrowing a stablecoin. Opening a vault with yield-bearing assets is similar, but one feature becomes much more valuable: the ability to deposit any token.
In the case of yield-bearing assets, the tokens sent are swapped to the underlyings of the yield-bearing asset, and deposited in the platform they earn yield from. For example, in the case of Curve LP tokens, the underlyings are deposited on Curve, the LP tokens obtained staked on Convex, and used as collateral in a vault.
All external rewards accumulated by the vault's staked collateral can be claimed from the Angle app in one transaction, such that there is no opportunity cost to use Angle to stake tokens and borrow stablecoins from it.
To check out all these steps, click on the Transaction Details on the right side of the screen.
In the following example, 20 FRAX are deposited in the Curve FRAXUSDC pool, the LP tokens are staked on Stake DAO, and deposited as collateral in the vault. 10 agEUR are also borrowed from the vault.
This feature can be interesting when using the leverage functionality of the app. By getting leverage on yield bearing tokens, you can effectively enable multiply your returns.
For example, if the borrowing cost is 0.5% and a collateral with an APR of 3% is used, a 4x leverage can increase the effective returns up to 10.5%, assuming collateral price remains constant.
Add/Borrow agEUR

Repay your debt or close your vault

Once a vault is created, you can repay part of your debt or close it completely. You can also withdraw some collateral up to the minimum LTV.
When repaying your debt, you can either use your vault collateral balance, your wallet balance, or a mix of both. If you choose to repay your debt with your vault collateral, the tokens are swapped to debt tokens on your behalf and used to repay your debt.
Here are the steps to Repay debt, withdraw collateral, or close your vault:
  1. 1.
    Go to the Borrow section of the app
  2. 2.
    Click on the Remove / Repay button on your vault.
  3. 3.
    Tick the box above the inputs if you want to repay all your debt and close your vault. You will get all the remaining collateral.
  4. 4.
    Enter the amount of collateral you want to remove and the token you want to receive in your wallet.
  5. 5.
    Enter the amount collateral you want to use to repay your debt in the bottom left input.
  6. 6.
    Enter the amount of debt token from your wallet balance you want to use to repay your debt.
  7. 7.
    Click on the bottom right button to send your transaction. You can also simulate the transaction before confirming it.
For example, in the following screenshot, 0.01 wETH is swapped into ~12.45 agEUR to repay part of the vault's debt, and 10 agEUR from the wallet is used to repay some of the remaining agEUR debt.
Repay and withdraw
A summary of the changes on your vault and wallet is displayed on the right. You can access all the steps of the transaction by clicking on the Transaction Details dropdown.

Transfer debt between two positions

Angle Borrowing module enables you to transfer your stablecoin debt between two of your vaults on the same chain but with potentially different collateral assets.
If one of your vault has a health factor of 1.05 (and is therefore close from liquidation), and if the stablecoin of the vault is agEUR, you may want to transfer the agEUR debt of this vault to that of another vault you control which has a higher health factor.
This operation does not involve any collateral transfer and is very efficient gas-wise: it's thus a way to cheaply avoid liquidations.
Here are the steps to transfer debt between two vaults:
  1. 1.
    Go to the Borrow section of the app
  2. 2.
    Click on the Transfer button on the vault for which you want to increase the stablecoin debt
  3. 3.
    Pick the vault from which you want to take debt: the vault you select at this step is the vault which debt is going to be decreased
  4. 4.
    Enter the amount of stablecoin debt you want to transfer to your vault
  5. 5.
    Click on the bottom right button to send your transaction. You should see a summary of the evolution of the health factors of the two concerned vaults before launching the transaction.
Transfer Debt

Monitoring your positions

You can monitor your vaults' health from the main Borrow page.
Vaults list
Two of the important quantities to monitor for open vaults are:
  • their loan-to-value (LTV): value of vaults' debt compared to that of their collateral.
  • their health factor (HF): indicator for the health of vaults. Below 1, vaults can get liquidated.
These are computed as follows:
LTV=debtcollateral\texttt{LTV} = \frac{\texttt{debt}}{\texttt{collateral}}
HF=1LTV×max. LTV\texttt{HF} = \frac{1}{\texttt{LTV}} \times {\texttt{max. LTV}}

Claim your rewards

Staked tokens accumulating external rewards can be used as collateral in an Angle vault. You can claim all your vaults collateral rewards directly from the Angle App in just one transaction. To do so, click on the Claim button at the right of the highlighted card below.
CLaim vaults rewards
Last modified 6mo ago