AIP - 7: Launching Angle Borrowing Module

1

Hey everyone,

This is a proposal to officially launch our borrowing module on Ethereum mainnet.
We announced it in some articles, published a comprehensive documentation for it as well as a technical documentation, now we should be ready to officially proceed in the coming weeks.

Smart contracts are finalized and have been audited by Chainsecurity, now it’s just a matter of polishing the UI/UX to give our users the best experience possible. We’ve open-sourced the smart contracts we plan to use if you want to check them.

This new module requires upgrading the agEUR contract to make sure that it will also be able to mint agEUR, and for this reason it requires a DAO vote to move forward.

Context

Borrowing Module

Angle Borrowing module is designed to let anyone borrow agEUR against volatile collateral assets. It’s similar to Maker in some way except that we’ve included some improvements like capital efficiency features and limited liquidations.

The proposed launch parameters can be found in the SDK.
In summary, we propose to start with the following collateral assets:

  • wETH with a collateral factor of 83.5%
  • wBTC with a collateral factor of 72.5%
  • wstETH with a collateral factor of 77%

Governance will be able to vote and whitelist new collateral assets to be used for agEUR.

We also propose to start with a 10m debt ceiling on each collateral asset to limit initial risks to the protocol.

Note that to make the protocol safe and avoid the creation of bad debt, this module will be deployed with a quite restrictive dust parameter: minimum debt we suggest is 10,000 agEUR meaning no one will be able to borrow less than that.

Idea is also to go cross-chain quite rapidly once we’ll have more experience with this new module on mainnet (especially in terms of liquidations), as such people wanting to enjoy this new borrowing module with smaller capital requirements will be able to do so on other chains.

Flash-loan feature

With this new module comes a flash-loan feature allowing people to take agEUR flash loans for free. We propose to first introduce a cap on the flash-loaned amount of 10m agEUR.

Proposal

This proposal is a thre-sided proposals that we propose to vote in only one vote:

  1. Upgrade the agEUR contract on Ethereum to support the new borrowing module
  2. Deploy the borrowing module with the parameters specified
  3. Launch the flash-loan feature for agEUR

Since borrowing module has already been debated on Discord and in the forum, we’ll open this to a vote quite soon!

In the meantime, if you have any comment, feel free to let us know on Discord or on this governance forum. We’re happy to hear any feedback on the parameters!

4 Likes