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EURA
EURA
EURA is a decentralized, over-collateralized stablecoin pegged 1:1 to the Euro (€), issued and managed by the Angle Protocol. Originally launched as agEUR, it aims to be a liquid, scalable, and capital-efficient on-chain Euro for the decentralized finance (DeFi) ecosystem. The stablecoin is backed by a diversified basket of assets, including cryptocurrencies and Real-World Assets (RWAs), and is designed to provide holders with a native yield through a dedicated savings mechanism. [1] [2]
Overview
EURA is designed to function as a reliable and transparent digital representation of the Euro on various blockchain networks. Its primary purpose is to facilitate trading, lending, payments, and other DeFi activities without the price volatility associated with most cryptocurrencies. The stablecoin's stability is maintained through a combination of over-collateralization, algorithmic market operations, and a unique three-agent ecosystem within the Angle Protocol. [3]
The Angle Protocol, which governs EURA, operates as a Decentralized Autonomous Organization (DAO) and also issues a US Dollar-pegged stablecoin, USDA. The reserves and collateral backing EURA are fully segregated from those backing USDA to ensure the financial independence and security of each stablecoin. [4] The protocol is backed by institutional investors, including Andreessen Horowitz (a16z), and Angle Labs is the main contributing entity to its development. [5]
History
The Angle Protocol was first announced in July 2021 and officially launched on the Ethereum mainnet on November 3, 2021, introducing its Euro stablecoin under the ticker agEUR. [6]
In August 2022, the protocol introduced the Merkl mechanism, a novel system designed to more efficiently incentivize liquidity providers on concentrated liquidity automated market makers (AMMs) like Uniswap v3. [2] During the market-wide stablecoin volatility of March 2023, the stablecoin's value briefly fell to approximately €0.916. [1] In response to the market stress observed during this period, the protocol developed and launched Angle V2 on August 9, 2023, an upgrade designed to introduce greater resilience and ensure a fair exit for users during extreme market conditions. [6]
On September 25, 2023, Angle introduced stEUR, a yield-bearing liquid staking token for its Euro stablecoin, which allowed holders to earn a passive return on their assets. [6]
In 2024, the Angle DAO approved a proposal to rebrand agEUR to EURA. The change was officially announced on March 14, 2024, as a strategic decision to create a more intuitive, memorable, and universally understood name for the stablecoin. The rebranding was purely cosmetic, with no changes to the underlying smart contract, address, or technology. [7]
Technical Architecture
EURA's stability and functionality are underpinned by the modular architecture of the Angle Protocol, which distributes risk and responsibilities across different modules and participants.
The Three-Agent Ecosystem
The protocol's resilience is built on a model involving three key groups of participants:
- Stablecoin Users (Stable Seekers): These are individuals and applications that mint EURA by depositing accepted collateral or burn EURA to redeem their collateral. They are the primary users of the stablecoin for payments, trading, and other DeFi activities.
- Standard Liquidity Providers (SLPs): SLPs provide collateral directly to the protocol to serve as a backstop buffer, enhancing its over-collateralization. In return for providing this liquidity, they earn a share of protocol revenue, such as fees and interest.
- Hedging Agents (HAs): These are sophisticated traders who help insure the protocol against the price volatility of its crypto collateral. They open leveraged long positions on the collateral assets, similar to perpetual futures, absorbing losses if the collateral's value drops. HAs are incentivized by potential profits and fees for taking on this risk. This multi-agent system is designed to maintain protocol solvency by actively managing collateral risk. [2] [3]
Core Modules
Angle Protocol operates through several interconnected modules:
- Borrowing Module: This module allows users to mint (borrow) EURA by depositing various crypto assets, such as Wrapped Ether (wETH) and Wrapped Bitcoin (wBTC), into isolated vaults. It functions through over-collateralization and includes liquidation mechanisms to maintain solvency. [4]
- Transmuter Module: This is a primary mechanism for maintaining EURA's price stability. It allows for 1:1, slippage-free conversions between EURA and other approved, liquid Euro-denominated stablecoins (like EURC) held in the protocol's reserves. This process does not rely on external price oracles. By facilitating arbitrage, the Transmuter helps defend the €1.00 peg and automatically rebalances the protocol's backing. The module was designed for resilience and performed effectively during the March 2023 USDC de-peg event. [1] [4]
- Algorithmic Market Operations (AMOs): The protocol can deploy its own assets and mint EURA into various DeFi protocols. These AMOs are used to deepen EURA's liquidity across the ecosystem, help maintain the peg through market operations, and generate additional yield for the protocol. [2]
Peg Stability
EURA's peg to the Euro is maintained through several coordinated mechanisms. The primary 1:1 convertibility within the protocol's core modules creates a natural arbitrage loop: if EURA trades above €1 on external markets, arbitrageurs can mint EURA at €1 and sell it for a profit, increasing supply and pushing the price down. Conversely, if it trades below €1, they can buy cheap EURA and redeem it for €1 worth of collateral, reducing supply and pushing the price up. This is reinforced by the Hedging Agents absorbing collateral volatility and the Transmuter's ability to process large, peg-defending swaps. While some operations are oracle-free, the protocol relies on robust oracle providers like Chainlink and Uniswap V3 for pricing collateral in the Borrowing Module. [3] [[https://www.lbank.com/price/ageur/what-is/What-is-agEUR]]
Collateral and Backing
EURA is an over-collateralized stablecoin backed by a diversified portfolio of assets held in the Angle Protocol's reserves. The composition is transparent and can be verified on-chain. [5]
Real-World Assets (RWAs)
A significant and growing portion of EURA's backing consists of Real-World Assets. These are tokenized versions of traditional financial assets, which diversify the reserves away from crypto-native volatility and generate a stable, low-risk source of yield. The RWA portfolio primarily includes tokenized short-term government T-Bills, government bonds, and corporate bonds. As of late 2025, the RWA backing was valued at approximately $21 million. The protocol manages these assets through partnerships with specialized firms like Matrixdock, Backed Finance, and Ondo Finance. The RWA holdings are audited by firms such as WithumSmith+Brown. [1] [8]
Crypto-Native Assets
The reserves also include crypto-native assets, which are primarily deposited by users of the Borrowing Module. These assets include volatile cryptocurrencies like Wrapped Ether (wETH) and Wrapped Bitcoin (wBTC), as well as other stablecoins such as USDC. These stablecoins are also used to facilitate swaps within the Transmuter module. [2]
Yield Generation (stEUR)
EURA is a natively yield-bearing stablecoin through its "Savings EURA" feature. Holders can stake their EURA in the Angle savings contract to receive stEUR, an ERC-4626 compliant liquid staking token that automatically accrues yield. [2]
The stEUR token was introduced on September 25, 2023, launching with a fixed 4% APY, no minimum deposit requirements, and no lock-up period, allowing users to withdraw their funds at any time. [6] The yield distributed to stEUR holders is generated from multiple protocol revenue streams:
- Interest paid by users borrowing EURA against their collateral.
- Trading fees generated from the activities of Hedging Agents.
- Yield earned from the protocol's collateral reserves, with RWAs being a key contributor.
Staking EURA for stEUR is designed to not introduce additional composability risks or trust assumptions beyond holding EURA itself. [1] [4]
Governance
The Angle Protocol is governed by the Angle DAO, which is composed of all holders of the ANGLE token. Holders can participate in governance by locking their ANGLE tokens to receive veANGLE (vote-escrowed ANGLE). The veANGLE token grants holders voting rights on governance proposals and allows them to boost their share of protocol-distributed rewards. [5]
Proposals concerning protocol upgrades, risk parameters, fee changes, and the onboarding of new collateral types are submitted and voted on by veANGLE holders through platforms like Snapshot. All governance activity is conducted publicly. The decision to rebrand agEUR to EURA is an example of a change implemented through this formal governance process. [7] [3]
Ecosystem and Adoption
EURA is integrated across the DeFi ecosystem and is available on multiple blockchains to enhance its accessibility and utility.
Use Cases and Liquidity
EURA is used extensively for trading, yield farming, and as collateral in lending and borrowing protocols. It also serves as an on-chain forex instrument and enables fast, low-cost cross-border payments. The stablecoin has established deep liquidity on major decentralized exchanges, including Uniswap, Curve, and Velodrome. This liquidity is often incentivized by the Merkl mechanism, a capital-efficient incentive distribution system developed by Angle Labs that is also used by other major protocols like Arbitrum and Aave. Integrations with platforms like Bleap also enable real-world spending via crypto-linked debit cards. [2] [3]
Multi-Chain Presence
EURA is a multi-chain asset available on numerous blockchain networks, including:
This widespread availability is managed through Angle's official bridging infrastructure. [5] [2]
Integrations and Wallet Support
The stablecoin is integrated into leading DeFi protocols like Aave and has partnered with platforms such as Kyber Network. It can be stored and managed on major self-custodial wallets, including MetaMask, Trust Wallet, and hardware wallets like Ledger. [2]
Security and Audits
Angle Protocol prioritizes security through a multi-layered approach that includes system design, external audits, and community incentives.
Smart Contract Audits and Bug Bounties
The protocol's smart contracts have undergone multiple security audits from several blockchain security firms, including Sigma Prime, Chainsecurity, and Code4rena. Additionally, the protocol maintains an active bug bounty program to incentivize security researchers to find and responsibly disclose potential vulnerabilities. [4] [2]
Impersonation Scams
As a prominent DeFi protocol, the Angle ecosystem and its users are targets for sophisticated phishing scams. In October 2025, a notable scam emerged promoting a fraudulent airdrop for a non-existent token named "STEUR." The perpetrators created an impersonating article on the Medium platform under the name "Angle EURA" and directed users to a malicious website designed to drain their wallets. The scam used social engineering tactics, including a detailed but fake FAQ and mentions of legitimate wallets, to create a false sense of security. This event highlights the ongoing security risk of impersonation attacks and the need for users to verify information exclusively through Angle Protocol's official website and verified social media channels. [9]
Regulatory Context
EURA's decentralized nature places it in a different category from centrally issued stablecoins under the European Union's Markets in Crypto-Assets (MiCA) regulation.
As a decentralized, over-collateralized stablecoin governed by a DAO and backed by a mix of crypto-assets and RWAs, EURA does not classify as an E-Money Token (EMT). EMTs, such as Circle's EURC, are issued by a single regulated entity and are fully backed by fiat reserves held in banks. In contrast, EURA's issuance is permissionless and its reserves are managed on-chain by a protocol. Despite this difference, Angle Protocol's design, which emphasizes full transparency, auditable over-collateralization, and stability, aligns with the broader objectives of MiCA regarding consumer protection and market integrity. This positions EURA as a DeFi-native asset that can coexist with fully regulated stablecoins in the European market. [3]
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