This is an updated proposal following comments received below in respect of the initial draft.
Applicant Name: Mariam Kouanda
Project Name: Angle Protocol
Project Description: Angle Protocol is a Defi protocol that launched:
- agEUR, the most liquid Euro stablecoin;
- stEUR, a staked agEUR paying a yield coming from RWAs held in Angle’s reserves and protocol fees (newly launched on 25 September 2023); and
- Merkl, a smart incentivization system for concentrated liquidity used by major Arbitrum DEXes.
Pablo Veyrat - Cofounder of Angle
Guillaume Nervo - Cofounder of Angle
Picodes - Cofounder of Angle
Mariam Kouanda - Head of growth at Angle
- Website - https://www.angle.money/
- Documentation Portal - Angle Documentation Portal - Angle Docs
- Github - Angle · GitHub
- Audits - Audits - Angle Docs
- Twitter - https://twitter.com/AngleProtocol
- Analytics and Balance Sheet - Angle Analytics
Do You Acknowledge That Your Team Will Be Subject to a KYC Requirement?: Yes
Requested Grant Size: Between 200,000 $ARB and 700,000 $ARB, to be released according to milestones (see grant timeline below with milestones included).
Grant Matching: Yes. Native yield in agEUR will distributed from Angle Protocol’s profits and reserves, currently 4% APY on stEUR.
As a reminder, stEUR is a staked agEUR paying a fixed 4% APY coming from RWAs held in Angle’s reserves and protocol fees.
The grant will be distributed to (see grant timeline below for milestones):
- incentivize a stEUR/USDC Camelot v3 pool from 1 November 2023 to 31 January 2024 with up to 250,000 $ARB;
- incentivize a stEUR/ARB Camelot v3 pool from 1 November 2023 to 31 January 2024 with up to 250,000 $ARB;
- incentivize a stEUR/wstETH Camelot v3 pool from 1 November 2023 to 31 January 2024 with up to 100,000 $ARB;
- incentivize the use of stEUR as collateral to borrow USDC on a native lending protocol (Radiant) with 100,000 $ARB (to be unlocked only if the integration is secured prior to December 15, 2023);
If this grant request is approved, Angle will immediately:
(1) deploy stEUR and native agEUR staking on Arbitrum in order to create the first RWAs and Euro based savings rate on Arbitrum;
(2) add $ARB as a token to mint agEUR natively on Arbitrum;
(3) work on use cases and integration for stEUR in order to push this program beyond liquidity incentivization (e.g. lending, yield tokenization etc.).
The grant will not be used for development costs, only for supporting the development of stEUR on Arbitrum, promoting RWAs in the ecosytem, enabling integrations across the ecosystem and its pairing with $ARB and $wstETH.
Funding Address: 0xAA2DaCCAb539649D1839772C625108674154df0B
Funding Address Characteristics: 4/6 Safe multisig composed on Angle core team members and ecosystem participants. More details on the multisig composition here.
Contract Address: Incentivization will go through Merkl, the incentivization tool built by Angle Labs, that enabled concentrated liquidity incentivization. Merkl related contract addresses can be found here.
Objectives: The objectives are:
- Launch the first RWA and Euro-based yield source on any L2 with stEUR and bring the first savings rate to Arbitrum
- Create deep Euro liquidity on Arbitrum with stEUR and so indirectly with agEUR
- Use the development of stEUR on Arbitrum to support $ARB volume and liquidity with a stEUR/ARB pool
- Further support the use of $ARB by enabling agEUR minting with $ARB
- Use the development of stEUR on Arbitrum to support $ETH volume and liquidity with a stEUR/wstETH pool
- Further the use of RWAs-related assets on Arbitrum and taking this program beyond liquidity incentivization by supporting the use of stEUR as collateral on a lending protocol and promoting other use cases
Key Performance Indicators (KPIs):
- Angle TVL on Arbitrum
- Number of circulating stEUR on Arbitrum
- Percentage of stEUR natively staked on Arbitrum and portion of Angle revenue distributed on Arbitrum (breakdown between Ethereum and Arbitrum)
- $ARB volume and liquidity relating to the stEUR/ARB pool to be set up
- $wstETH volume and liquidity relating to the stEUR/wstETH pool to be set up
How will receiving a grant enable you to foster growth or innovation within the Arbitrum ecosystem?:
This is an opportunity to provide all Defi users on Arbitrum (and not only Euro inclined ones) with:
- a simple and real yield coming from RWAs;
- a state of the art application of RWAs in the space;
- composability opportunities with enabling borrowing with stEUR and other use cases.
This grant would make Arbitrum the home of the first Euro and RWA based yield source and the most cost effective option to benefit from that opportunity. Arbitrum would be the first L2 to provide and support such an opportunity with stEUR (staked agEUR).
As mentioned, this will incidentally grow Euro liquidity on Arbitrum giving it a and boost in terms of stablecoins’ and currency’s diversity in the Defi ecosystem.
Justification for the size of the grant:
agEUR and the Angle Borrowing module have been deployed on Arbitrum since July 2022 to allow native minting of agEUR on the chain.
All these products have undergone audits and development work. This includes significant developement work made by Angle to allow a 1-click leverage from on Curve pools on Arbitrum in the Angle borrowing module.
Angle has been active in the Arbitrum ecosystem, in particular through its Merkl product, the smart incentivization tool that is today used by Uniswap to distribute close to 2M ARB to increase volume and liquidity in several pools but also by DEXes such as Sushiswap and Camelot. Working with these partners have required bespoke integrations and smart contract work to cater to the development of liquidity and volume on Arbitrum for these DEXes.
stEUR is a new product that enables value-sharing by streaming protocol revenue to agEUR stakers.
This grant will:
- support the further adoption on Arbitrum of all the above mentioned products (agEUR, agEUR borrowing using $ARB, stEUR and Merkl);
- the sizing and duration will allow a compelling support RWAs-related opportunities on Arbitrum;
- the sizing and duration will allow the development of a stEUR liquidity to develop use cases for it apart from LPeing in pools (use stEUR as collateral, integration in yield-related products like Pendle etc.);
- support both $ARB and $ETH liquidity and volume.
The grant is requested to migrate stEUR stakers to Arbitrum and incidentally support $ARB and $ETH in order to unlock a total TVL in the above-mentioned pools of $14+ millions in total, including, approximately €7m worth of stEUR on Arbitrum (see the grant timeline with milestones below).
Use of Merkl to incentivize on Camelot v3
The pools to be set up are concentrated liquidity pools on Camelot.
Incentivizing concentrated liquidity is initially difficult to implement. To do so, Angle will use Merkl, the tool developed by Angle Labs.
This tool is already in use since 2022 and trusted by several concentrated liquidity DEXes and projects to incentivize concentrated liquidity including Uniswap, Camelot, Sushiswap, Retro and others.
Fees do not apply when Merkl is used to incentivize agEUR and stEUR pools. This means the the use of Merkl will not incur any fees charged to the benefit of Angle Labs.
Incentivization of the pools for a maximum total of 600,000 $ARB (see grant timeline for milestones)
If found are allocated to Angle to develop the stEUR while boosting the use of ARB and ETH on Arbitrum, we will immeditaly set up the three following pools:
- Camelot v3 stEUR/ARB
- Camelot v3 stEUR/wstETH
- Camelot v3 stEUR/USDC
Incentivization for the use of stEUR as collateral on Radiant for a total of 100,000 $ARB (see grant timeline for milestones)
Upon incentivization of the above-mentioned pools and development deep liquidity for stEUR on Arbitrum, the Angle team shall seek the listing of stEUR as collateral on Radiant as a native Arbitrum lending protocol and incentivize this use case.
This integration shall be worked on by the Angle team and the selected lending protocol prior to December 15, 2023 to unlock this portion of the grant.
- The grant shall be awarded in three monthly tranches according to milestone as mentioned in the tables below.
- If after the first month less than 75% of the global stEUR targets is reached, the program shall be stopped. Above 75%, the program shall continue over the second month.
- If after the second month, less that 75% of the second month stEUR global target is reached, the program shall be stopped. Above 75%, the program shall continue over the third month.
First month - 1 November 2023 to 30 November 2023
- Deployment of stEUR on Arbitrum
- Enabling of native staking of agEUR on Arbitrum
- Enabling agEUR borrowing with $ARB
- Incentivization on stEUR pools as follow
|Pools||Distributed $ARB||Milestone Goal in TVL in the pool|
|Camelot v3 stEUR/ARB||83,333||$1.4m|
|Camelot v3 stEUR/wstETH||33,334||$1.3m|
|Camelot v3 stEUR/USDC||83,333||$4m|
Second month - 1 December 2023 to 31 December 2023
- Assessment of the first month stEUR global target and continuation if >75%
|Pools||Distributed $ARB||Milestone Goal in TVL in the pool|
|Camelot v3 stEUR/ARB||83,333||$1.5m|
|Camelot v3 stEUR/wstETH||33,334||$1.4m|
|Camelot v3 stEUR/USDC||83,333||$4.25m|
Third month - 1 January 2024 to 31 January 2024
- Assessment of the second month stEUR global target and continuation if >75%
|Pools/Lending||Distributed $ARB||Milestone Goal in TVL in the pool|
|Camelot v3 stEUR/ARB||83,333||$1.7m|
|Camelot v3 stEUR/wstETH||33,334||$1.5m|
|Camelot v3 stEUR/USDC||83,333||$5m|
|Radiant (native lending protocol)||100,000||$8m|
Do you accept the funding of your grant streamed linearly for the duration of your grant proposal, and that the multisig holds the power to halt your stream? Yes
Is the Protocol Native to Arbitrum?: Yes. Angle protocol was initilly deployed on Ethereum but deployed it borrowing module natively on Arbitrum. This allows the native minting of agEUR on the chain.
On what other networks is the protocol deployed?: agEUR is deployed on at least 12 chains. However the protocol in itself is deployed only on Ethereum, Arbitrum, Optimism, and Polygon.
What date did you deploy on Arbitrum?: agEUR and Angle Borrowing module were deployed on Arbitrum in July 2022.
As at 27 September 2023, Angle Protocol has a global TVL of $27m and agEUR has 581.k holders.
Angle has newly launched the stEUR on 25 September 2023 at 5pm CET. Currently, 48 hours hours after launch, $3m worth of agEUR have been staked for stEUR.
As at 27 September 2023, Angle has $1m TVL on Arbitrum.
The potential deployement of stEUR on Arbitrum is a first of a kind, simple and useful usage on which the Angle can rely on to grow further on Arbitrum while supporting RWAs use cases and ARB on the chain.
With its tool Merkl, Angle Labs helps to power more liquidity and volume on concentrated liquidity pools across DEXes such as Uniswap, Camelot, Sushiswap etc.
The protocol is also focused on providing transparency and making protocols’ reserves and financials accessible and readable by all.
Angle has built and maintains an analytics showing the protocol balance-sheet, reserves and TVL progression in real time. The goal is to add more details useful to all participants including a soon to come event page that will detail all events by chain. This will also allow tracking of performance on Arbitrum.
Angle newly deployed stEUR on 25 September 2023 (i.e. just 1 day prior to the posting of this proposal). The protocol future roadmap consists in:
- re-enforcing the diversification and resilience of the protocol’s reserves by exploring additional collaterals, including yield-producing collaterals;
- implementing a fully on-chain governance, it being noted that the on-chain governance will allow voting on both Ethereum and Arbitrum;
- Furthering the integrations for the newly launched stEUR;
- Delivering more details in the analytics of the protocol that provide all details to stakeholders on the financial state of the protocol.
The protocol has been audited:
- 1 time by Code4rena
- 3 times by ChainSecurity
- 1 time by Sigma Prime
No critical findings remained unresolved. Audits are available here.
Is your team prepared to create Dune Dashboards for your incentive program?: Yes or another dashboard providing a similar level of information.
Does your team agree to provide bi-weekly program updates on the Arbitrum Forum thread?
Angle analytics is publicly available.
It will allow anyone at all times to see agEUR minted on Arbitrum but also agEUR staked on Arbitrum (stEUR). In addition, I (Mariam) or Pablo (Angle’s Cofounder) will be able to provide bi-weekly program updates.
Does your team acknowledge that failure to comply with any of the above requests can result in the halting of the program’s funding stream?: Yes