The discussion primarily revolved around the proposal by Sogipec, a Core Team member of Angle Protocol, to enable agEUR as a collateral in isolation mode on AAVE V3 on Polygon. agEUR is a Euro stablecoin launched by Angle Protocol, with a significant supply and daily volume. The proposal also includes deploying the protocol on Polygon, which would allow anyone to natively mint agEUR from there. The stablecoin is over-collateralized and backed by various other stablecoins. The protocol has also launched a new module that allows people to borrow agEUR against wETH, wstETH, and wBTC¹.

The proposed risk parameters for the isolation mode are 60% LTV, 80% liquidation threshold, 20% reserve factor, and a $3M debt ceiling. This proposal would provide Aave V3 users with the unique opportunity to long the € and short the $ through agEUR, a use case that is currently unavailable elsewhere in DeFi¹.

The Angle Protocol, governed by the ANGLE token and the veANGLE token, was released on November 3rd, 2021. The protocol has a large community and has undergone four different audits. The agEUR token contract on the mainnet is upgradeable by a multisig, which is also applicable to agEUR on Polygon¹.

Community members such as BristolBlockchain and MarcZeller expressed support for the proposal, noting the potential benefits of using agEUR as collateral in AAVE V3 and the increasing trend of using stablecoins to hedge positions and Forex directional trade^2,3. The discussion concluded with a general consensus in favor of the proposal, highlighting the potential of agEUR in the DeFi space.