What Is Angel Protocol?

Terra's protocol focused on making a difference

Angel Protocol is one of my favorite Terra projects not just because of its potential to increase $UST adoption but because I honestly believe it can change the world of sustainable development in a big way. Most nonprofits who are doing great work in the world face challenges in meeting the required resources needed to not only sustain their current operations but also to scale the work that they’re doing – be it in education, health & hunger or environmental protection.

FOR NON-PROFITS OR CHARITIES

Angel Protocol can change all these. For nonprofits (or charities), Angel Protocol provides a better platform for raising funds and setting up endowments via Anchor Protocol’s ~20% APY.

Once nonprofits get enough endowments, they can sustain annual operations via the interest income coming from Anchor Protocol and that allows not only for programs to continue year in, year out but more importantly, nonprofit leaders can begin planning for and begin recruiting for an organizational structure that’s really required to take on the big social challenges they wish to solve. Nonprofit staff can also plan their career in the specific nonprofit they are involved in long-term as they know the nonprofit can continue to sustain their employment.

FOR DONORS OR FUNDERS

On the other hand, Angel Protocol also provides an amazing opportunity for donors, grant givers, funders and philanthropists to extend the impact that their donations or funding provides via the endowment program. It allows for easier monitoring as most reporting activities can be done on-chain and decisions are transparent. 

ANGEL PROTOCOL EXPLAINED

Angel Protocol is Terra’s charity protocol which aims to challenge some of the existing paradigms of the charity world. “Give once, and give forever” is the premise of Angel.

Leveraging Anchor Protocol’s yields, Angel makes it easy for charities to set up endowments with high returns. Donated funds can continue to produce meaningful yields indefinitely. One of the major challenges of the charity world is sustainability. The market plays a decisive role in affecting the seasonality of the charities. And when it comes to making a difference, charity has to be perpetual. The existing problem with most nonprofit organizations is the operating revenue and Angel Protocol aims to provide a solution by turning charity contributions into perpetual charity endowments. The amount pledged ends up earning yields and those yields become a perpetual source of charity.

Simple enough!

The beauty of Terra ecosystem is the seamless integration of different protocols with one another. Angel Protocol allows donors to make a pledge through $UST, which is an algorithmic stablecoin pegged to the US dollar’s value. It is created by buying and burning an equivalent amount of LUNA in the market. Angel Protocol uses Anchor Protocol to earn a stable interest of nearly ~20%.

ANGEL PROTOCOL and $LUNA

Anchor Protocol is Terra’s high-yield fixed interest savings protocol; the yield earned is periodically given to the charity as per the donor’s choice. Angel Protocol not only provides a benefit to charities, donors and donees but to the entire Terra ecosystem. With the increased adoption of $UST by charities, more LUNA will have to be bought and burned for the minting of $UST. This will lead to less supply pushing the prices up and thus benefit the $LUNA holders.

Angel Protocol also runs a validator for the Terra network where 100% of the commissions are governed by $HALO (Angel Protocol’s governance token) holders.

YELLOW BOAT

As I’ve written before, Yellow Boat of Hope (Philippines), the nonprofit I founded 11 years ago is one of the nonprofits which has been onboarded into Angel Protocol and we really love what Angel Protocol will allow us to do to continue helping children get access to education across the Philippines.

If you’re a nonprofit leader or worker or if you’re a donor looking to make a long-term difference, I really suggest you learn more about Angel Protocol by going to their website and watching their Youtube videos – it’s time charity work gets the big boost it deserves.

PS – Angel Protocol is always looking to onboard new charities, so reach out to them on Telegram or Discord.