EURA (agEUR) Stablecoin Explained: How Angle’s Euro Stablecoin Works

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Key Takeaways

• EURA (agEUR) is a Euro-pegged decentralized stablecoin created by Angle Protocol.
  
• Maintains its peg through oracle-based convertibility and risk-hedged collateral.
  
• Backed by a multi-agent model: Stable Seekers, Hedging Agents, and Liquidity Providers.
  
• Fully on-chain, over-collateralized, and governed by Angle DAO.
  
• Used in DeFi, payments, and non-custodial wallets like Bleap.
  

Summary Box

• EURA = decentralized Euro stablecoin by Angle Protocol.
  
• Over-collateralized with crypto (ETH, USDC, wBTC).
  
• Maintains peg via 1:1 oracle swaps and arbitrage.
  
• Protected by Hedging Agents and Standard Liquidity Providers.
  
• Integrated in DeFi apps and real-world spending via Bleap.
  

What Is EURA (agEUR)?

EURA, also known as agEUR, is a decentralized Euro stablecoin issued by Angle Protocol. It’s fully over-collateralized and allows 1:1 minting or redemption with supported crypto collateral at oracle prices, ensuring price stability, transparency, and seamless convertibility across DeFi.

Unlike centralized stablecoins such as USDT or EURC, EURA doesn’t depend on bank reserves or custodians. Instead, it uses crypto collateral, managed transparently on-chain, to guarantee stability and liquidity.

EURA brings together the trust of fiat-backed models and the autonomy of DeFi, creating a truly borderless and censorship-resistant Euro alternative.

How EURA Maintains Stability

EURA keeps its value close to €1 through unrestricted convertibility between stablecoins and collateral at oracle price.

This mechanism enables instant arbitrage whenever the market price diverges from the peg:

• If EURA > €1 → users mint EURA using collateral, then sell for profit.
  
• If EURA < €1 → users buy EURA cheaply, redeem it for collateral.
  

This self-balancing system allows market forces, not a central issuer, to keep EURA stable.

According to Angle Protocol documentation, this peg mechanism ensures continuous price alignment without slippage, regardless of transaction size.

How the Angle Protocol Works

Angle functions as a three-layer ecosystem balancing supply, demand, and collateral risk.

1. Stable Seekers (Users)

They deposit crypto collateral (ETH, wBTC, or USDC) to mint EURA at oracle value.

When they redeem, EURA is burned, and the collateral is returned, similar to a direct swap.

2. Hedging Agents (HAs)

HAs are traders who take on the collateral’s volatility via perpetual-future-like positions.

They earn if collateral prices rise but absorb losses when they fall, effectively insuring the protocol.

3. Standard Liquidity Providers (SLPs)

SLPs provide additional collateral liquidity, covering temporary imbalances when not all user deposits are hedged.

They earn yield from protocol fees, acting as a stability buffer between users and HAs.

Why EURA Is Over-Collateralized

Angle ensures total collateral value always exceeds the circulating EURA supply.

This structure prevents insolvency even in sharp market downturns, a major improvement over algorithmic or under-collateralized models (like the failed UST).

The combined efforts of Hedging Agents and Liquidity Providers maintain solvency and trust, while governance mechanisms can adjust parameters (like fees or collateral ratios) dynamically.

How to Get EURA

There are two main ways to acquire EURA:

1. Minting on Angle Protocol:
   Deposit supported collateral (e.g., ETH or USDC) into Angle’s app and receive EURA at oracle rate with minimal fees.
   
   
2. Buying from Exchanges or Apps:
   EURA is available on major DEXs and non-custodial platforms.
   
   You can also hold and spend EURA directly through Bleap, which integrates it into a full on-chain Euro account with Mastercard support.
   

Example:

If you deposit €1,000 worth of ETH, you’ll mint approximately 1,000 EURA. Later, you can redeem it for ETH or use it in DeFi pools to earn yield, all on-chain and with full control.

EURA vs Other Stablecoins

Is EURA the Best Euro Stablecoin?

Among all Euro-pegged options, EURA stands out for being entirely decentralized and capital efficient.

While EURC and EURe are regulated and custodial, they rely on banking partners.

EURA, instead, is trustless, composable, and native to DeFi, offering a Euro-denominated asset that functions globally without centralized control.

As Europe enforces MiCA regulations, EURA complements, rather than competes with, regulated e-money tokens, giving users freedom, transparency, and DeFi utility.

Advantages of EURA (Angle Euro Stablecoin)

• Capital Efficiency: Low slippage 1:1 swaps at oracle value.
  
• Decentralized Governance: Managed by the Angle DAO.
  
• Multi-Layer Protection: Hedging Agents and SLPs mitigate market risks.
  
• On-Chain Transparency: Every reserve and transaction verifiable in real time.
  
• Interoperability: Available across major blockchains and DeFi platforms.
  
• Compliant Direction: Designed to align with MiCA principles for long-term sustainability.
  

Use Cases of EURA

• DeFi Yield: Earn Euro-based yield with stable returns.
  
• Cross-Border Payments: Send Euro value worldwide without intermediaries.
  
• Savings Protection: Hedge against fiat inflation with decentralized backing.
  
• Liquidity Pools: Provide EURA in AMMs for passive income.
  
• Everyday Spending: Use EURA via Bleap’s Mastercard with 2% cashback and no FX fees.
  

Transparency and Governance

EURA is governed by the Angle DAO, where token holders propose and vote on protocol upgrades, collateral parameters, and risk management policies.

All proposals are public on Snapshot.

This ensures decentralization, transparency, and community alignment.

Regulation Outlook (MiCA Context)

The Markets in Crypto-Assets (MiCA) framework introduces clear standards for stablecoins in Europe.

While EURA is not an e-money token, it operates transparently and aligns with MiCA’s objectives of consumer protection, collateral backing, and auditability.

This makes EURA one of the few DeFi-native Euro assets positioned for a compliant future.

Risks and Limitations

• Collateral Volatility: Sharp market downturns can challenge over-collateralization.
  
• Oracle Dependency: Accurate price feeds are essential for peg stability.
  
• Technical Complexity: The protocol’s structure may be complex for newcomers.
  

Angle mitigates these through continuous audits, automated risk management, and DAO-driven parameter tuning.

FAQs About EURA Stablecoin

What is EURA (agEUR)?

EURA is a decentralized Euro stablecoin by Angle Protocol, backed by crypto collateral and governed on-chain.

How is EURA different from EURC or EURe?

EURA is decentralized and over-collateralized, while EURC and EURe are fiat-backed and custodial under traditional frameworks.

Is EURA regulated?

EURA operates under DeFi governance but aligns with EU transparency and MiCA principles.

Where can I use EURA?

Across major DeFi platforms and non-custodial apps like Bleap, enabling real-world Euro payments and yield.

Is EURA safe?

Yes. It’s over-collateralized, DAO-governed, and protected by layered liquidity mechanisms.

Conclusion: The Decentralized Euro for a Bankless Future

EURA is more than a Euro-pegged token, it’s a foundation for the next generation of DeFi finance in Europe.

With its capital-efficient, over-collateralized, and transparent architecture, it offers stability without centralization.

Want to use EURA in everyday life?

Bleap integrates EURA directly into your on-chain account, letting you spend, send, and save Euros globally from one secure, non-custodial wallet.

👉 Explore Bleap with EURA →