AIP - 38 - Enable veANGLE boost delegation

This is a proposal to enable veANGLE boost delegation on the Ethereum mainnet.

Context

Angle Protocol is governed by the veANGLE token. Owning veANGLE gives the right to the following advantages on the protocol:

  • vote on governance proposal
  • vote for new ANGLE token emissions
  • a share of the revenue that is made by the protocol
  • And a boost that can increase the amount of ANGLE tokens received when participating in farms. Let’s say you are a UniV3 agEUR-USDC LP, with veANGLE tokens, you can receive up to 2.5x the amount of ANGLE you would be getting if you did not own any veANGLE.

Currently many veANGLE holders are not actively participating in ANGLE farms, and as such they’re not using the full power of their tokens.

ve-token boosting is something that already exists within the Curve governance for addresses (like smart contracts) to earn boosted CRV emissions without giving up DAO voting rights or weekly fee allocation.

Proposal

The proposal is to enable veANGLE boost delegation on Ethereum for smart contracts.

Implementation

Angle gauge system already relies on what is called a veBoostProxy contract. By default, when looking at the veANGLE balance of an address, Angle gauges read into this contract which then queries the balance directly on the veANGLE contract.

There is the possibility to set up a delegation in this veBoostProxy contract. Instead of reading the veANGLE balance, this contract can look into the delegation contract the adjusted veANGLE balance for an address. By adjusted, we mean the normal veANGLE balance adjusted by any boost received or given to another address.

Such delegation contracts are something which is pretty standard among protocols with ve-tokenomics and Curve has recently come up with a new standard for this contract. We propose to use this implementation.

Value to the protocol

On top of offering more possibilites for veANGLE holders, and let them use their idle token balance without giving up on anything else, this also increases the granularity and composability of the protocol.
In particular, this will allow new governance tools from being built on top of the veANGLE tokens (like Warden/Paladin for instance).

As such we, at Angle Labs, don’t plan on building any front interface for boost delegation should this proposal pass, as others might built directly on it.

Risks

The risk here is the smart contract risk, and that addresses end up getting not enough or too many ANGLE when participating in a farm because there is an error in the veBoostDelegation contract by Curve.

The contract we propose to use is already used by Curve which has not seen any bug or hack since its launch.

If there is any problem, it’s going to be super easy to revert back to the current system as it just implies killing delegation on the veBoostProxy contract

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