Angle Incentive Proposal
Last edit: 13/06/2022
Project Name: Angle
Author Name: @tuta
Number of OP tokens requested: 500,000 OP
L2 Recipient Address: 0x3245d3204eeb67afba7b0ba9143e8081365e08a6
Targeted deployment date: By the end of July 2022
Relevant Usage Metrics: (TVL, transactions, volume, unique addresses, etc.)
- Angle TVL ~$120M
- agEUR total supply > 60M €
- agEUR daily transaction count > 100
- agEUR weekly DEX volume > 30,000,000 agEUR
- agEUR total transfer volume on-chain > 5B agEUR (includes all types of transactions)
More info on our analytics and on this agEUR dashboard. You can also check out Angle’s app on mainnet at app.angle.money
Optimism alignment (up to 200 word explanation)
Angle was launched on Ethereum first because of its strong network effect, and the long-term alignment with its vision and values. We see Optimism as a very promising rollup for its scalability, but also for its will to pursue the Ethereum vision of decentralized public goods. The governance experiment being put forward by the Optimism Foundation is a testimony of that.
Angle is a decentralized and over-collateralized stablecoin protocol that launched agEUR, the leading decentralized EUR stablecoin on Ethereum. We are preparing to launch a new set of smart contract called Angle Borrow. It will work alongside the current mechanism, and will add the ability to mint stablecoins from assets deposited in a vault similar to Maker’s DAI mechanism.
This will allow us to expand the protocol and its stablecoins to new layers and sidechains, including Optimism. This is an opportunity of Optimism to have access to a robust and over-collateralized stablecoin that has been stress-tested on mainnet already. Angle is also planning on launching other stablecoins in the future.
Proposal for token distribution (under 1000 words)
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How will the OP tokens be distributed? & How will this distribution incentivize usage and liquidity on Optimism?
- 80% to be distributed to agEUR LPs in a pre-defined and linear way to incentivize early liquidity on Optimism.
- 10% to be distributed to agEUR LPs periodically to incentivize specific partnerships on Optimism between agEUR and other actors
- 10% to be kept by Angle DAO to align incentives between the protocol and the Optimism, and involve Angle DAO in governance right from the start. These tokens could also be used to provide liquidity to an OP-agEUR pool.
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Why will the incentivized users and liquidity remain after incentives dry up?
Optimism and other L2s are the leading scaling solution for Ethereum. Angle & agEUR community today is mostly on Ethereum and we think they share the vision of the Ethereum rollup-centric future. They know the security advantages of using Optimism compared to another L1 fork.
We believe that incentivizing Angle users to come to Optimism will be a winning operation, as they are likely to come for the rewards and stay for the quality of the network. At the same time, this will help Angle grow and bring utility and liquidity to Optimism through agEUR and its capital-efficient contracts.
A thriving stablecoin ecosystem is very important for any network, and this is what Angle will bring to Optimism. Borrowing stablecoins and getting leverage in the protocol are two native use cases in DeFi that can survive without being incentivized. Bootstrapping the use of Angle and agEUR with network incentives is a good way to attract the first users before reaching a critical size.
- Over what period of time will the tokens be distributed:
Over 3 to 6 months.
- How much will your project match in co-incentives?
Some ANGLE tokens of the weekly distribution are being set aside for this type of incentives programs. If the proposal passes, the DAO will discuss and vote about how much incentivizes to distribute on Optimism, with the goal being to match OP distributed with ANGLE 1:1.
We hope the Optimism community will welcome Angle. Let us know if you have any feedback on the proposal, and feel free to leave a comment!