Hello,
This is a proposal to activate the stEUR and stUSD contracts on Linea.
Context
The stUSD and stEUR contracts have already been deployed at the same address across different chains.
Yet only on some chains can users earn a yield by depositing EURA & USDA into the contracts.
The version of the contract for stUSD is also not up to date and the contract needs to be upgraded to the latest version where the name and symbol can be set.
The names for stEUR and stUSD on the chain also need to be updated to the new rebranded version.
Having stUSD and stEUR live on Linea (just like any other L2 or sidechain) means that it’d be possible for USDA & EURA holders there to stake their USDA and EURA and start receiving the savings yield provided by the protocol with limited gas fees.
Proposal
This proposal is to activate the stUSD and stEUR contract on Linea.
Like what was voted here, the rate policies for stUSD and stEUR on Linea must remain the same as what it is on other chains.
In particular, looking into the stEUR example, the stEUR rate must be the same across all chains where it is deployed and be computed based on:
- the estimated revenue generated by the protocol across all chains
- the sum of EURA staked in all stEUR contracts across all chains where stEUR is activated
Implementation
Launching the stEUR and stUSD contract on a chain only implies:
- granting these contracts the minter role on their respective stablecoin contract
- setting the maximum settable rate to 10% for EURA and 40% for USDA so the guardian multisig can update the rates proposed.
To get stEUR or stUSD on a chain people would need to get EURA and USDA on this chain and then stake it.
In particular here, stEUR (or stUSD) is not a token that’s bridged but rather a token that can be obtained upon staking minted/bridged EURA (or USDA).
Rationale for this implementation was that:
- the protocol already has a functional bridge infrastructure built around EURA and it’d require significant engineering efforts to make it available to stEUR
- this is purely equivalent to the protocol on a balance sheet level: one EURA remains a liability to the protocol wherever it is. And an EURA staked on Ethereum is the same from a protocol perspective as an EURA staked on Linea.
Note that the consequence of this is that the value of stEUR on Linea is going to be different from what it’s worth on Arbitrum, Gnosis chain or Ethereum (which also all differ from one another).
Value to the protocol
This aims at making stEUR and stUSD more accessible to smaller DeFi users who are using the Linea blockchain, and to protocols on the chain.
In particular, goal of this proposal is to facilitate the onboarding of Metamask and Metamask card users so they can earn a yield all while spending with their card on the chain.
Risks
This proposal increases the exposure of Angle to Linea, as it will lead in some way to a native issuance on the chain. It also increases the risk of creating a bridge imbalance between chains, like having negative flows from a chain like Optimism to Linea, thus meaning that it’d be impossible for other “organic” users to bridge from Optimism.