These were received as a retroactive reward for the protocol which started relying on Pyth oracles after the launch of the Transmuter mechanism for agEUR.
The protocol will continue to be powered by Pyth given the reliability of the services provided. While veANGLE holders have already faced in the past the downsides of the composability of the protocol sometimes relying on infrastructure from other systems (cf Euler hack), as the stakeholders most incentivized on the long term success of the protocol, they should also be exposed to the upsides that this composability brings.
Proposal
The proposal is to allocate the 500,000 PYTH tokens received by the protocol on Solana to veANGLE and staked sdANGLE holders based on their token balance on the 1st of March 2024 at 3pm CET.
The bigger the veANGLE balance (or associated staked sdANGLE balance) the bigger the share of the rewards distributed.
Rationale
While rewards distributions were stopped after the Euler hack, this recreates a precedent with the protocol distributing what it earns across its various activities to the most central stakeholders of the protocol: veANGLE holders.
We are developing at the moment with Angle Labs several projects for the protocol and idea is that each of them directly benefits to veANGLE. And this proposal is the first step towards launching this movement.
Reason here for looking into future balances is to give the opportunity for those who have not renewed their lock in a long time, or those who did not enter the system yet to do it (through sdANGLE potentially).
Implementation
We suggest to use Merkl as a tool to reward the LPs here. Merkl is generalizing itself in a V2 that allows to reward any behavior, not specifically focused on concentrated liquidity.
But why do you say “Merkl as a tool to reward the LPs here”. Because, to be elligeable to the pyth distribution, either veAngle would be attached to a wallet of a “personal user” either sdANGLE are “staked” in Stakedao Locker (I mean the sdAngle that are in curve angle/sdangle LP pools are not part of the prooposition as I understand). About 48.6 M sdangle are stacked (out of a total of 60 M sdangle)
I guess some (clever???) people may buy sdangle (currently you get 135 sdangle for 100 angle) instead of locking 4 years the angle into veangle…
ps: An alternative to the 1st March 2024, we could also take the “date” of the distribution of the 500 000 PYTH.
Thanks for sharing.
Indeed, I guess it’s habitude here, I shouldn’t have written about Merkl as a tool to reward LPs.
In the buying of sdANGLE with ANGLE, yes it’s true and the reason with Merkl is that we can include anti-sybil mechanisms so there’s no one snipping the sdANGLE token before going out of it. Most likely people doing this should lose money from the process.
I think it’s kind of left pocket right pocket: sdANGLE which is bought means repeg, means future ANGLE locked forever.
Not sure how to avoid people buying sdANGLE. The downside of sdANGLE is that it can be sold, the upside is that the lock is permanently increased.
The full repeg is 3m sdANGLE bought ($100k).
Perhaps those who have liquidity should remove and stake which would make the repeg harder.
But the airdrop is around $280k, an 8% profit for veANGLE. I don’t think a lot of people are going to take the price risk of ANGLE for the chance of a one-of 8% profit. So I think anyone who buys sdANGLE to benefit from this will just stay, probably looking forward to future airdrops as well. So I don’t believe sdANGLE bought should be excluded in anyway, will just overcomplicate everything and create unnecessary disappointments.
Personally, I fully support this idea. I have been somewhat critical about the lack of plans (communicated to the community) regarding the distribution of value from the protocol, whether present or future, to veANGLE holders. I am pleased to see that there are plans in motion. Once again, I emphasize that my critical stance lies in the tokenomics of the protocol and not in the team’s capacity to manage and expand it. I am eagerly awaiting the communication of ongoing projects aimed at expanding the protocol.