AIP: Seed agEUR pool on dAMM
Authors: Eto and Joshua Baker
Contribute $250k of agEUR to seed the agEUR dAMM pool. This will allow Angle the ability to earn reliable yield in the form of revenue to the treasury in return for providing market makers and exchanges access to make markets and list agEUR.
dAMM is the first under-collateralized lending platform for any token, offering DAO’s and token issuers the ability to lend their assets directly to market makers seeking to provide liquidity in their respective markets. We believe that creating liquid and efficient markets for euro stablecoins is crucial, and we believe that Angle has had success in solving this with agEUR.
We recently announced a similar partnership with Ribbon Finance here:
About dAMM Finance:
dAMM is an under-collateralized lending platform for any token with algorithmically determined interest rates. Any token with a liquidity pool on dAMM, market makers can borrow on dAMM to provide liquidity and trade across all centralized and decentralized trading venues. More details about the dAMM protocol can be found in our whitepaper:
Our investors include many major exchanges and market makers, including: Kronos Research/WOO Network, System 9, AscendEx and Gate Ventures. Our founding team are members of System 9, one of the largest alt-coin market makers in crypto. System 9 is the dedicated market market for more than 80 alt-coins and was founded by market makers from the Chicago Mercantile Exchange, JP Morgan Capital, and Bear Stearns. Our protocol is open source here: GitHub - system9development/compound-protocol: The Compound On-Chain Protocol
Market-neutral market makers
One of the core values of dAMM is that we maintain transparency between counterparties, and that we mitigate risk responsibly with our borrowers. We are working with an established third party credit analysis firm that has direct access to the net exposure of individual borrowers to the market; and we are strictly only seeking to develop relationships with market makers who have a verifiable history of market-neutral trading activities
What does it mean for Angle?
The protocol will make a strategic deposit into the dAMM agEUR Pool, enabling market makers to directly borrow agEUR and provide liquidity across agEUR markets. dAMM also works closely with centralized exchanges that are consistently seeking high quality tokens like egEUR and ANGLE to list. dAMM will work alongside Angle to screen for potential strategic listings. All users and community members of Angle are able to deposit to the agEUR pool and supply additional liquidity for market makers.
Additionally a retro-active airdrop is planned for all DAO’s and token issuers that contribute their native assets to dAMM, this would qualify for that airdrop. We expect the agEUR AMO to show market makers there is strong product-market-fit in non-USD stablecoin lending. agEUR holders can directly capitalize on their holdings through the agEUR dAMM pool, and further bolster liquidity amongst CEX and DEX listings and pairs. Additionally several reputable exchanges are working with us in search of listing tokens we are working with including agEUR as a quote currency/base pair. We conservatively expect a 5% yield on deposits.
If successful this AMO will be implemented at the beginning of August, when dAMM Finance lists its genesis pools, and the strategic asset committee will deposit the funds in the pool.
For: Seed $250K agEUR to the agEUR Pool on dAMM
Against: Do nothing