[ANGLE PROTOCOL] [FINAL] [STIP - Round 1]

[Mariam]

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.

Team Members and Qualifications:

Pablo Veyrat - Cofounder of Angle

Guillaume Nervo - Cofounder of Angle

Picodes - Cofounder of Angle

Mariam Kouanda - Head of growth at Angle

Project Links:

1. Website - https://www.angle.money/
2. Documentation Portal - Angle Documentation Portal - Angle Docs
3. Github - Angle · GitHub
4. Audits - Audits - Angle Docs
5. Twitter - https://twitter.com/AngleProtocol
6. Analytics and Balance Sheet - Angle Analytics

Contact Information

TG: @MariamKd

Twitter: https://twitter.com/TheBlockAdopter

Email: mariam.k@angle.money

Do You Acknowledge That Your Team Will Be Subject to a KYC Requirement?: Yes

SECTION 2: GRANT INFORMATION

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.

Grant Breakdown:

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.

SECTION 3: GRANT OBJECTIVES AND EXECUTION

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).

Execution Strategy:

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.

Grant Timeline:

• 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
Global	200,000	$6.7m

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
Global	200,000	$7.15m

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
Global	300,000	$16.2m

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

SECTION 4: PROTOCOL DETAILS

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.

Protocol Performance:

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.

Protocol Roadmap:

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.

Audit History:

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.

SECTION 5: Data and Reporting

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

[meyaf320219]

Up to 1.1m ARB to incentivise the liquidity of a single token is really quite hard to compherend.

Whilst I appreciate the work you are doing with stEUR/agEUR, it really is hard to justify such a large amount for a non-native protocol and on just one single token.

Why does the proposal not take into account any other Arbitrum protocols? Uniswap and a “lending protocol” is disappointing when the entire purpose of this framework is to incentivise Arbitrum builders.

This proposal is a large cost to the DAO that almost entirely generates value just for Angle.

Please could you also detail the incentives and liquidity you have achieved so far for this token? Thanks

[Mariam]

Hi meyaf320219,

Thanks a lot for your feedback.

Please see answers below. Going from there we’re happy to incorporate feedbacks to improve the proposal.

Scope and value of the program for Arbitrum

• Supporting the adoption of the first savings rate on Arbitrum and any L2
• Giving access to a fixed 4% Euro-based real yield to Arbitrum users
• incentivizing ARB, USDC, wstETH along with stEUR
• Creating the base for composability opportunities with a RWA-related asset (i.e. stEUR liquidity)

Amount requested

The initial amount requested is 333,334 ARB with potential extensions.

The proposal suggest the release of a second tranche of the grant only if a $9m TVL (75% of the target) is achieved across the 3 pools incentivized after 1 month.

The same logic applies for any extension of the grant from the 2nd month to the 3rd.

Happy to hear improvements suggestion on that part.

Inclusion of other Arbitrum builders

• This proposal include further building on Arbitrum on Angle’s part including adding $ARB as collateral to mint agEUR
• The initial proposal is to use of the most popular DEX on Arbitrum by TVL and volume (i.e. Uniswap v3) to host the incentivized pools → we are very happy to hear any suggestion from you or any other stakeholders on the alternative they would like to see
• Composability of a RWA-based asset in Defi starting with using stEUR as collateral in lending → this bit and many other uses of this opportunity by Arbitrum builders is conditional to the presence of enough stEUR liquidity on the chain. And the portion of the grant relating to integrating stEUR as a lending collateral would not be used if there is no integration to incentivize.

Adding here again that we’re open to suggestions to improve the proposal, if any.

More information on the savings rate and stEUR

agEUR staking and stEUR have been deployed 24 hours ago on Ethereum Mainnet.

It has never been incentivized and there are currently 2.4m stEUR from users who started using the contract to benefit from the savings rate.

Please let us know your thoughts on the above as well as your suggestions if any!

[Matt_StableLab]

Hello @Mariam thank you for your application! Your submission meets all requirements to be considered for a snapshot vote.

[peter]

Hi Mariam,

Thanks for the proposal.

The Arbitrum Incentive exists primarily to nurture the Arbitrum ecosystem, including builders and users. It’s a win-win cooperation program, as evidenced by the sentiment across the forum.

I agree with @meyaf320219 mentioning that this proposal only focuses on stEUR liquidity on Uniswap, which is not Arbitrum native and leverages stEUR through minting and lending. Although stEUR is a protocol great forward as the first Euro RWAs yield-bearing asset, it’s a still new product that just has launched and has not been proven its liveness on mainnet, where the protocol focuses on and starts with.

However, Angle Protocol and Merkl are both good products. Angle Lab is a great team with their commitment, talent, and transparency. They are real builders in this space and deserve an Arbitrum grant to grow the first Euro RWAs native yield-bearing assets, which will bring many benefits when it can interact with many users with cheap transactions as Arbitrum offers.

I suggest that Angle Lab adjust the requested amount to be more reasonable and use native Arbitrum DEXs and money markets as their liquidity and leverage solutions for stEUR.

I hope this feedback is helpful.

[Perl]

I wouldn’t change a word of this post. I’m sure this proposal could, and imho should, pass with the suggested improvements.

[Mariam]

@peter @Perl @meyaf320219 @Matt_StableLab and all reading this post - Please see above a revised version of the draft proposal to (1) include native Arbitrum protocols to the execution and (2) revise the size of the request.

Also updated the protocol figures as the number of staked agEUR grew!

Thanks a lot for chiming in, i’ll be reading further comments!

[meyaf320219]

this is great, the amount seems much more reasonable

[thecryptostakr]

Hello @Mariam, thank you for choosing Arbitrum to implement this project.

These are my reasons for supporting the Angle Protocol proposal:

1. Great team, pragmatic with good vision about the fusion between DeFi and RWA assets;
2. Angle Protocol is a completely transparent protocol (something unique in DeFi), providing a platform (https://facts.angle.money/) for consulting transactions, treasury, liquidity composition, etc.;
3. Launched the most liquid euro stablecoin on the market: agEUR;
4. agEUR is the only yield bearing euro stablecoin;
5. The project states “native minting” of stEUR, therefore it means that this project implies native involvement in Arbitrum DeFi;
6. Arbitrum’s investment in this project and others like it contributes to the consolidation of Arbitrum as the Ethereum L2 DeFi hub, and the competition to be this DeFi hub is becoming very strong and aggressive. The first movers, with quality investments, are those who will be able to gain market share;
7. This project presented by Angle Protocol is a great opportunity for small crypto investors (European or non-European) to access a fantastic DeFi product (euro yield stablecoin), contributing to the expansion of the Arbitrum platform’s user base, as well as to the increased liquidity on this platform;
8. I can say that, as a small investor in DeFi (and a European one), I am looking forward to this product being made available on a Layer 2 so that it is viable for me to make an investment. And I sincerely hope that this layer 2 is Arbitrum, the Ethereum L2 DeFi hub;
9. To conclude, investing in this project means much more than supporting a product (stEUR), it means bringing greater liquidity and the integration of RWA assets into DeFi across Arbitrum DeFi.

PS:

1. Through the amended proposal, the amount of support requested has already been adjusted and a change in the implementation of the liquidity pools to a native protocol (Camelot) has been proposed;
2. As a holder of $ARB tokens, this amended proposal has my full support.

[abeltherebel]

Really respect the flexibility here, turning community feedback into action like this is a great sign of accountability. 100% in favor of the proposal.

[strategicreserve]

As a long-term partner of Angle, Gamma knows how intelligent and professional the Angle team is. We have enjoyed working with the team on their EUR products and with Angle Merkl. Angle is a team you want to have a presence on Arbitrum. We hope the delegates approve this proposal.

[Matt_StableLab]

Hello @Mariam ,

Now that your application has been marked eligible, please be advised of the remaining steps in the application process to be completed prior to the Review Period Deadline:

@Matt_StableLab

• Review Period Deadline: October 4, 2023 11:59 PM EST

Please complete the following steps required for your application to proceed to Snapshot:

@Matt_StableLab

2. Once feedback is collected, applicants will need to change their application title from [DRAFT] to [FINAL] by the Review Period deadline: October 4, 2023 11:59 PM EST. At that time, all eligible proposals with the following formatted titles will be migrated to Arbitrum Snapshot to vote. The correct format for a proposal ready to move to vote looks like this: [Project Name] [FINAL] [STIP - Round 1].

To change your proposal to final, please tag an Arbitrum Foundation Forum Moderator (@ stonecoldpat @ cliffton.eth @ eli_defi) by the Review Period deadline to notify them of your proposal’s readiness to proceed from [Draft] to [Final] status.

Once notified, the Arbitrum Foundation Forum Moderator will adjust your title from [Draft] to [Final] status. Once marked as [FInal], your application post will be locked by moderators and you will no longer be able to edit your proposal.

[Mariam]

Hi @Matt_StableLab @stonecoldpat, @cliffton.eth and @eli_defi,

We would like to confirm that our application is ready be marked as [FINAL]. Please kindly change the title accordingly.

Thank you!

[cliffton.eth]

Post has been marked FINAL and locked.

[litocoen]

The Angle team has really impressed me throughout this bear market continuously continuing to build new products as well as many public goods used in the Arbitrum ecosystem such as Merkl.

I also think that building liquidity for a Euro stablecoin is beneficial to Arbitrum - as well as experimenting with RWA’s and the yield it will produce for stEUR holders.

You have my support!

[EynSoph]

RWAs are big narrative in the space and I love how Angle is also helping drive that. If you’d like to do more with EUR, this is it. Happy to support their proposal and their endeavours on Arbitrum.

[WintermuteGovernance]

Angle Protocol has contributed to the diversity of the DeFi ecosystem with the EUR based stablecoin and advanced liquidity mining efforts through Merkl. The outlined grant objectives align with the goals of the STIP and target collaboration between Arbitrum-native protocols. Furthermore, Angles focus on driving adoption of stEUR will provide important data and insights into the demand for RWAs on Arbitrum.

We look forward to supporting Angle Protocol’s grant application!

Angle Protocol Summary Stats:

• Largest EUR stablecoin by DEX trading volume market share since May 2022 - 64.4% in September
• 4th largest EUR stablecoin by Market Cap & largest decentralized stablecoin - $20M

Source: Dune, DefiLlama.

Disclaimer: Wintermute is an investor in Angle Protocol

[SEEDGov]

Angle Protocol: @Mariam
From @Seedgov led by the @cattin delegation, we want to convey our support to this proposal. The reasons why we agree are as follows:

• Application size tied to milestones. Being the largest decentralized Euro Stablecoin in the ecosystem, they have described a number of interesting actions for the Arbitrum ecosystem; the implementation of STEUR, and the subsequent liquidity incentive in Camelot, may bring new interest to Arbitrum; the listing of ARB as asset collateral, will give it an interesting use that avoids the sell

We want to clarify that this is not the final vote, since as we clarify in this release, the final vote is defined by our community. We also want to invite you to attend our Governance Call that will be held tomorrow in our discord .

[Mariam]

Thank you to everyone here that has commented this proposal for improvements and support.

It’s particularly great to see Angle community members, users and delegates spontaneously providing feedback and the thoughts behind their support for this proposal. Thank you for your work, time and commitment to governance and new Defi development.

@SEEDGov I would be glad to attend your governance call on behalf of Angle. Reaching out to arrange details!

[SEEDGov]

For more details you can see this post we made

Arbitrum's Short-Term Incentive Program (Arbitrum Improvement Proposal)

General Communication SEEDGov As already noted by @cattin, the @seedlatam delegation has created this account in collaboration with several partners, with the objective of evaluating grant proposals related to Arbitrum Short-Term Incentives. Here are the evaluation criteria adopted: Evaluation Criteria: Despite the large volume of proposals received, with more than 106 submissions in a short period, the team defined several essential criteria to determine which initiatives to support: Protoco…