HIP-5 (Asset Listing) - Add agEUR to Polygon Deployment

Simple Summary

This proposal seeks the approval of mveHND holders to add the agEUR token to the Polygon deployment of the Hundred Finance dApp.

Abstract

The agEUR token is a EUR-pegged stablecoin built to mirror the value of the euro issued by Angle Protocol. The addition of agEUR would represent the first instance of a Euro stablecoin being made available on Hundred Finance. This presents an opportunity to generate usage and fees from its holders by Hundred Finance providing lending services.

Background

agEUR is issued by the Angle Protocol, an issuer of overcollateralized stablecoins on the Ethereum blockchain, and is present in bridged versions on other chains such as Solana, Fantom, Polygon. agEUR price stability is maintained by hedging agents (perpetual futures traders) who absorb the volatility of the collateral backing agEUR in return for the ability to profit from the deep liquidity provided to the protocol by the standard liquidity providers (who supply assets in return for a share of minting and burning fees). To begin with, Hundred Finance would create a market for agEUR solely on Polygon. agEUR has already been listed on the Aave and Euler lending markets.

Motivation

The addition of agEUR would represent the first instance of a Euro stablecoin being made available on Hundred Finance. As the euro is a major currency with a large potential market for pegged-asset holders, offering yield on agEUR could draw significant liquidity to the protocol. In addition, it could be a popular collateral of choice for those seeking to leverage their stable assets in the pursuit of yield farming enabled by borrowed crypto.

Specification

As of writing, agEUR’s collateral ratio is approximately 180% and it is backed predominantly by USDC, DAI, FEI and FRAX. agEUR’s current market cap stands at $65m, with a daily trading volume in the low, single-digit millions. Liquidity on Polygon is concentrated on two Curve pools (around $20n at time of writing), though there exists some minimal liquidity on the Quickswap DEX. The greatest amount of liquidity can be found on the Ethereum mainnet, running in the tens of millions in USD value. Purchase of agEUR is possible there using https://app.angle.money 1, as well as through a DEX like Uniswap or an aggregator. The agEUR token would be listed on Hundred Finance with a Loan-to-Value ratio of 75%, providing robust protection against price volatility while approaching that of other, more established . In order for the vote to pass and listing to go ahead a quorum of 10% must be reached along with a majority in favor of approving the proposal.

Discussion

Further information about the potential listing can be found on the forum at: https://forum.hundred.finance/t/asset-discussion-adding-ageur-to-polygon/80