Some reflection notes and questions

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My best regards to the team members,

I would like to present , as well as some questions.

  1. Why did it take them so long to accept that it was necessary to address the USD market? In an old post I suggested the need to approach this market and was told that this could generate legal problems, what has changed in the meantime?

  2. In your opinion, what are the main differences of this protocol that allow you to develop a competitive moat? In my opinion: transmuter, RWA yield, EUR and USD stablecoins issued by the same protocol (and I hope that in the future it will be possible to offer new stablecoins) and CDP offering using a fixed rate.

  3. From what I understand, through the implementation of the new strategy, Angle Protocol intends to assume a position equivalent to what I would define as a kind of decentralized CIRCLE. However, CIRCLE has developed the CCTP bridge protocol that allows the secure distribution of its stablecoins across a huge set of blockchains. Will Angle Protocol be able to provide a bridge structure that allows you to distribute your stablecoins with the same size and security?

  4. Is using Layer Zero technology really the best option? Wouldn’t Axelar’s current technology be a better option (e.g. Frax Finance)?

  5. Is the RWA yield strategy a relevant competitive factor? I don’t think so: Frax Finance and Ondo’s USDY are or will be present in the market and in places where Angle Protocol stablecoins are not present (Cosmos and Mantle). Does the Angle protocol intend to operate its stablecoins only in EVM environments or is it open to approaching other ecosystems?

  6. I also understand your pragmatic focus on the most liquid platforms: Ethereum, Arbitrum and Base. What I don’t understand is your resistance to implementing the CDP contract with a greater range of collateral in these ecosystems. Is it a cost issue? Do you consider that there is no market? Could this not be a relevant factor in differentiating the protocol and eventually even a way to promote new integrations of its stablecoins?

  7. It seems insufficient to me that the USDA stablecoin is issued through the CDP contract on Ethereum only with wstETH when there are other relevant offers on the market such as eETH.

  8. It seems insufficient to me that the USDA stablecoin is not issued through the CDP contract on Arbitrum and Base. Or at least Arbitrum. Collaterals such as wstETH, wETH, USDC, ARB and SNX. ARB: for reasons of political opportunity and liquidity (see the example of Synthetix V3 on Arbitrum).

  9. The LRTs associated with Mellow Finance VAULTS, some of which already have a relevant TVL, such as the VAULT managed by Stakehouse Financial (Angle Protocol partner) can be a possible differentiating integration in the market, if technical conditions exist to do it.

Thank’s for your time.
Pedro Lopes

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Thanks for all your questions! I’m sorry I hadn’t seen your post before hand.

  1. Yes the legal consideration was the big concern here. This concern was raised following discussions we had with some US legal counsel
  2. For us, it’s a combination of several things: offering the best of yield (low risk one), liquidity, solvency+reliability and transparency. We’re the only ones able to offer a yield that’s derived from TradFi + DeFi sources with no fees across different chains. In any case, stablecoins are getting quite commidified, and while what we’re doing is better at the level of the reliability of our mechanisms, stablecoins tend to look like one another, so it’s most of all a matter of distribution, and this is where we’re focusing our efforts
  3. Angle bridge structure is already scalable and i’d say more efficient than what Circle supports with its CCTP solution. That being said, I like the comparison with Circle, and I’d say that if Circle and USDC are the L1, we are definitely the L2 here
  4. There are many good solutions out there, that being said, I don’t think that bridges are big differentiators of why you’d use a stablecoin solution. Our system is built with thorough risk and security limitations, we’ve been able imo to find an optimal tradeoff between convenience and security here
  5. Angle is chain agnostic and we’re currently evaluating the deployment of our stUSD solution across new ecosystems (not necessarily EVM) where we’d get some demand
  6. Usually, and with the experience of our EURA CDP system, the deployment of a CDP system on new chains has never really been a differentiator leading to the adoption of the stablecoin.
  7. This echoes the point above, having seeded liquidity on vaults on Morpho is equivalent to having our own CDP system, so yes USDA supports far more collaterals than those that you can see on the app.
  8. USDA can be issued through CDP systems on Base (recently seeded a Metamorpho vault). We could definitely look into Arbitrum here
  9. Thanks for the idea, it’s something that we’ve been looking into as well! Looking for Mellow to open stUSD vaults