Hello everyone,
Pablo from Angle here!
This is a proposal to add EURA as a gas token on Celo. Note this proposal is just a draft and I’ll be adjusting it based on community feedback.
Context
Angle is a decentralized stablecoin behind so far 2 stablecoins EURA (previously agEUR) and USDA, that are both live on Celo.
The stablecoins are over-collateralized and can be minted 1:1 from EURC or USDC across different chains, or they can be borrowed across a wide range of different collateral assets (on Morpho or on Angle native contracts).
The backing of the stablecoins is available transparently in real-time here. You’ll note here that they are well over-collateralized with a $4m equity for the EURA stablecoin.
Angle stablecoins come with native yield solutions, derived from the earnings that the protocol generates on its reserves. Typically, Angle Euro yield product (stEUR) is part of the backing of Mento stablecoins (and the Mento protocol earned more than €110k from its investment in Angle in less than a year).
One other particularity of Angle stablecoins is their cross chain aspect. Angle stablecoins can be bridged seamlessly between more than 10 chains. During the pre-LayerZero airdrop season, many people used Angle stablecoins to bridge on Celo, so much that the amount of EURA holders on the chain is 541k.
Proposal
This is a proposal to add EURA as a gas token on Celo.
Value to Celo
This would proposal would enable 540k stablecoin holders to take advantage of the EURA in their wallet. While many of them just bridged to test our bridge setup, some of them are stuck on Celo with their EURA holdings because they don’t hold any EURA balance. Activating EURA as a gas token would enable them to start reactivating them on the Celo ecosystem
While Celo pioneered on the addition of stablecoins like USDC or USDT as gas tokens, this would be a way to start catering more for a European user base more likely to onramp on the chain using Euros.
With Angle, we’re typically working on integrations with onramp partners, and this would enable Europeans to start interacting on Celo right after having onramped on Celo with Euros.
With our yield products also directly available on the chain, having EURA as a gas token would simplify the experience for those who might look to simply take advantage of the yield product and may not be familiar with the usual requirement of having a different token than the gas token.
Implementation
The Angle DAO hasn’t started the implementation yet, mostly because we first want to get some community feedback from Celo to see whether development efforts would be worth it in the end.
Some notes on this though:
Token Implementation
The EURA contract is upgradeable and the Angle DAO can vote to upgrade it. Its logic on the chain can therefore be adjusted to include the debitGasFees and creditGasFees functions.
Oracle
When it comes to the oracle, given EURA 1:1 issuance model with EURC (with no fees), we propose to use a EUR/CELO oracle to get the price of EURA in Celo. This means hardcoding the price of 1 EURA to 1 EUR.
This is of course a proposal and I welcome any feedback to it!