Angle - stEUR
Wind-Down Notice: Angle Protocol has announced an orderly shutdown of EURA and USDA following a community governance vote (AIP-112, March 2026). EURA and stEUR remain fully collateralized and can be redeemed 1:1 for EURC via the Angle app on Ethereum until March 1, 2027. After this date, the protocol will cease active operations.
stEUR is the yield-bearing, staked version of EURA — Angle Protocol's euro-pegged decentralized stablecoin. By depositing EURA into Angle's savings contract, users receive stEUR: an ERC-4626 compliant token whose value appreciates continuously against EURA as protocol yield accrues. Unlike a simple stablecoin, stEUR is designed to grow in value over time rather than stay pegged at exactly €1.
EURA (formerly agEUR) is backed by a diversified basket of collateral including euro-denominated stablecoins (EURC, bC3M), real-world assets (tokenized money market funds via Backed Finance, Ondo Finance, and Matrixdock), and crypto-native assets deposited through the Borrowing Module (wETH, wBTC, USDC). The Transmuter module maintains price stability through a dynamic fee model and circuit breakers.
How stEUR works:
- Deposit EURA into the Angle Savings contract — no fees, no minimum, no lock-up
- Receive stEUR tokens representing your growing share of the savings pool
- The stEUR/EURA exchange rate increases over time as yield is distributed
- stEUR is freely transferable and composable across DeFi protocols
- Redeem stEUR for EURA (or EURC at 1:1) at any time
Angle Protocol launched in 2021 and has been audited by Chainsecurity, Sigma Prime, and Code4rena. The protocol's DeFiSafety Process Quality Review score is 97% — one of the highest in DeFi. Angle also runs a bug bounty program with up to $500,000 in rewards via Immunefi and Hats.finance.
Basic Information
Fundamentals
TVL
APR
Statistics
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| TVL Low | N/A | N/A | N/A | N/A |
Liquidity
Not calculated yet
Liquidity analysis will be available soon
Strategy
Important: Given the protocol wind-down, this strategy is appropriate only for existing holders who wish to continue earning yield until they redeem. New deposits should be made with the March 1, 2027 redemption deadline in mind.
- Acquire EURA
- Swap to EURA on a DEX (Curve, Uniswap) using EUR-denominated stablecoins such as EURC, EURe, or EURS
- Alternatively, mint EURA directly via Angle's Transmuter by depositing supported euro stablecoins at a 1:1 rate
- EURA is available on Ethereum (primary), and was previously available on Arbitrum, Optimism, Polygon, BNB Chain, Avalanche, and Gnosis
- Deposit EURA into the Angle Savings contract
- Navigate to app.angle.money and connect your wallet
- Deposit any amount of EURA into the stEUR savings contract — there is no minimum deposit and no protocol fee
- Receive stEUR tokens in return — the initial exchange rate is slightly above 1 EURA per stEUR, and it grows over time
- Hold stEUR and earn yield automatically
- No action is required — yield accrues continuously and is reflected in the rising stEUR/EURA exchange rate
- stEUR is ERC-4626 compliant and can be used in DeFi protocols that support yield-bearing vaults (as collateral, in liquidity pools, etc.)
- Your stEUR balance does not change; the value of each stEUR token increases relative to EURA
- Redeem before March 1, 2027
- Withdraw stEUR from any DeFi positions and redeem for EURA via the savings contract — no fee, no lock-up
- Redeem EURA for EURC at 1:1 via the Angle App on Ethereum
- After March 1, 2027, the redemption mechanism closes and any remaining reserves will be airdropped pro-rata to EURA/USDA holders on Ethereum
Yield Source
stEUR yield is generated by the assets that Angle Protocol holds across its minting and collateral modules. All yield collected by the protocol is distributed to stEUR holders — holders who do not stake their EURA subsidize those who do, since the savings rate can exceed the protocol's raw return on assets when staking participation is below 100%.
Primary yield sources for stEUR:
- Yield-bearing collateral in the Transmuter: Protocol reserves include tokenized euro money market instruments (e.g., Backed Finance's bC3M — a tokenized Amundi Euro Government Bond ETF) and other yield-bearing euro assets, which generate income from real-world interest rates
- Borrowing Module interest (stability fees): EURA borrowers pay a compounding stability fee on outstanding loans collateralized by wETH, wBTC, and other assets. These fees flow back to the protocol and are distributed as stEUR yield
- Transmuter fees: Transaction fees collected from swaps between EURA and its backing stablecoins (EURC, USDC) via the Transmuter module contribute to protocol revenue and thus stEUR yield
- Real-world asset income: Reserves allocated to RWA strategies (tokenized treasury bills and bond funds via Matrixdock, Ondo Finance, and Backed Finance) earn yields from traditional finance instruments
- Savings multiplier effect: Since not all EURA is staked, stakers receive a multiplier — if only 50% of EURA is in the savings contract, the protocol can pass up to 2x the raw reserve yield to stakers
Yield mechanics:
- Euro-denominated: Yield is paid in EURA, making stEUR a euro-denominated yield instrument — attractive for euro-base users but subject to EUR/USD exchange rate risk for dollar-base investors
- Variable rate: The savings rate is not fixed — it depends on protocol revenue, reserve composition, and staking participation rate, and is managed by Angle's governance
- ERC-4626 standard: stEUR is a standard vault share token; the stEUR/EURA exchange rate is the single source of yield accrual (not rebasing balance changes)
- No protocol fees: Angle charges no deposit or withdrawal fees for the savings contract itself
With the protocol wind-down in progress, the savings rate may decline as protocol activity decreases and reserves are consolidated for redemption.
Strategy Limits
Deterministic Constraints
- No deposit or withdrawal fees for the stEUR savings contract itself
- Yield accrues continuously and is reflected only in the rising stEUR/EURA exchange rate — your stEUR balance does not change
- Redemption of EURA to EURC (1:1) via the Angle App is available on Ethereum only until March 1, 2027
- After the wind-down deadline, remaining reserves will be airdropped pro-rata — no guarantee of exact 1:1 recovery if meaningful funds remain unredeemed
Probabilistic Constraints
- Savings rate is variable — it depends on protocol revenue, reserve composition, and total staking participation; it can decrease or reach zero
- Protocol activity is declining as the wind-down progresses, reducing borrowing demand and fee revenue — yield is likely to compress further
- Euro-denominated DeFi liquidity is generally thinner than USD equivalents, which may affect secondary market pricing of stEUR and EURA
- EUR/USD exchange rate fluctuations affect the dollar value of the position for non-euro base investors
- RWA collateral (tokenized bonds, money market funds) may experience temporary illiquidity or price dislocations under stress
Underlying Assets/Allocations
Approximate reserve composition based on public disclosures. Exact allocations shift dynamically with borrowing activity, Transmuter flows, and governance decisions. As the wind-down progresses, reserves are expected to consolidate toward liquid, euro-denominated assets.
Risk Analysis
Potential Risks
Based on the Angle Protocol documentation and known protocol history:
- Wind-Down / Deadline Risk — Failure to redeem before March 1, 2027 results in loss of the standard 1:1 redemption mechanism; remaining funds will be airdropped pro-rata from reserves, which may not equal face value if any shortfall exists
- Smart Contract Risk — Despite multiple audits, the savings contract, Transmuter, and Borrowing Module could contain undiscovered vulnerabilities; the Euler exposure in 2023 demonstrates that automated strategy interactions can introduce unanticipated risk vectors
- EURA Depeg Risk — If EURA loses its euro peg, stEUR (denominated in EURA) would be directly affected; historical precedent from the Euler incident shows this is a real risk, though the protocol recovered fully
- Collateral / Reserve Risk — EURA reserves include tokenized RWAs, euro stablecoins (EURC), and crypto assets. A failure or depegging of any major reserve component (e.g., EURC, bC3M) could impair the protocol's backing ratio
- Third-Party Protocol Risk — Yield-generating strategies interact with external protocols (lending markets, RWA platforms). A failure of a counterparty (as seen with Euler) can cause losses that flow through to stEUR holders
- Yield Compression Risk — As the protocol winds down, borrowing demand and reserve income decline, pushing the savings rate toward zero; stEUR holders may earn negligible yield in the final months before the deadline
- Liquidity Risk — Euro-denominated DeFi pools have lower liquidity than USD equivalents; as the wind-down progresses, stEUR and EURA secondary market liquidity may deteriorate further, increasing slippage on exits before the official redemption mechanism
- Governance / Multisig Risk — The Guardian multisig holds emergency powers to pause the protocol; compromise of multisig signers could disrupt operations or delay redemptions
- EUR/USD Exchange Rate Risk — For investors whose base currency is not EUR, fluctuations in the EUR/USD exchange rate affect the dollar value of stEUR and any realized gains
- Regulatory Risk — Euro-denominated DeFi instruments may face regulatory scrutiny under MiCA or other European financial regulation frameworks, potentially affecting protocol operations or collateral composition
Risk Analysis (3rd Parties)
Summary
stEUR is Angle Protocol's yield-bearing euro stablecoin — the ERC-4626 staked version of EURA that accrues yield from protocol reserves (tokenized RWAs, borrower interest, and Transmuter fees) without any lock-up or deposit fee. The protocol has a strong technical foundation: audited by Chainsecurity, Sigma Prime, and Code4rena, with a 97% DeFiSafety score and a $500,000 bug bounty program. However, the protocol's history includes a significant incident — the March 2023 Euler Finance exploit caused ~$17.6M in losses and temporarily depegged agEUR, though the protocol fully recovered and implemented improved risk controls.
The most material consideration for stEUR today is the wind-down: following community vote AIP-112 in March 2026, Angle Protocol is shutting down EURA and USDA stablecoins in an orderly fashion. EURA and stEUR remain fully collateralized, and 1:1 redemption for EURC is available on Ethereum until March 1, 2027. Existing holders should plan their exit well before this deadline. Yield is likely to compress as protocol activity declines. Euro-denominated DeFi markets are thinner than USD equivalents, so large positions should exit via the official Angle redemption mechanism rather than secondary markets. The team behind Angle now focuses on Merkl, their DeFi incentive distribution platform.
See Angle Protocol's audit reports and documentation: Angle Protocol Audits
Audit Coverage: Angle Protocol smart contracts have been extensively audited. Sigma Prime and Chainsecurity audited the core protocol (July–October 2021). Chainsecurity audited the new governance system (December 2021–January 2022) and the Borrowing Module (April–May 2022). Code4rena conducted an invitational audit of the Transmuter system and Merkl contracts (June–July 2023). The protocol holds a 97% Process Quality Review score on DeFiSafety, reflecting best-in-class documentation, testing practices, and admin controls.
Bug Bounty: Angle Protocol runs bug bounty programs with Immunefi and Hats.finance with rewards of up to $500,000 for critical findings, providing ongoing economic incentives for white-hat security researchers to report vulnerabilities.
See the Code4rena invitational audit report (June 2023): Angle Protocol — Invitational Findings & Analysis Report
Code4rena Audit Findings (2023): The audit of the Transmuter and Merkl systems identified 10 unique vulnerabilities: 3 high severity and 7 medium severity. One medium severity finding was not fully mitigated during the contest, and one mitigation error of medium severity was surfaced. These findings were in newer system components (Transmuter/Merkl), not the core savings contract.
Euler Finance Exploit — March 2023: On March 13, 2023, Euler Finance suffered a ~$200M exploit. Angle Protocol had ~$17.6M in USDC deposited in Euler's lending market (via an automated strategy that had moved funds from Compound to Euler without governance awareness). This exposure caused agEUR (now EURA) to briefly become undercollateralized. The Guardian and Governor multisigs quickly paused protocol functions. Euler later returned the stolen funds, and Angle executed a community-voted recovery plan that successfully restored agEUR's peg. The protocol generated a surplus of $1.58M during recovery as ETH prices rose. This incident led Angle to revamp its risk management around strategy automation and third-party protocol exposure.
Protocol Wind-Down (March 2026): The Angle community voted in favor of AIP-112 to orderly wind down EURA and USDA stablecoins. Activity on Angle stablecoins had been steadily declining, and the team determined the idle protocol created unnecessary smart contract risk and operational overhead for a shrinking user base. The team has pivoted to focus on Merkl, their DeFi incentive distribution platform. EURA and stEUR remain fully collateralized through March 1, 2027.
Governance Structure: Angle is governed by ANGLE token holders through on-chain votes (AIPs). The veANGLE locking system was deprecated in February 2025, reverting to ANGLE as the sole governance token. Key parameters: 100k ANGLE to create a proposal, 20% quorum, 24h voting delay, 4-day voting period. A Guardian multisig can execute emergency protocol pauses without a full governance vote.