Angle Cross-Chain Strategy

Now that agEUR and ANGLE are bridged on Polygon, we can discuss the next steps forward in terms of bridging to other networks/layer2s!

Basically, the main subjects of discussion are:

1. Which network/L2 should the tokens be bridged to next

Our thinking until now has been to move forward as much as possible, such that we are open to bridge the tokens on pretty much any network.

The remaining questions now are which one should we go to first, and the questions about incentives below.

2. Should liquidity on those network be incentivized with ANGLE rewards and, if yes, how much and on which network specifically.

My opinion is that we should be careful about which pools we incentivize and on which networks, as it’s important that there is enough ANGLE demand and liquidity on those networks.

I would recommend that we focus on the networks with most economic activity and demand for ANGLE/agEUR to incentivize liquidity and start building integrations with other protocols there.

Next Steps

We were thinking about moving to Avalanche next as their bridge looks well setup, it has been attracting many users recently, and they have the AVAX incentive program in place that could be interesting.

The goal of this post is to discuss Angle’s cross-chain strategy in general. Feel free to share your opinions and ideas on how Angle protocol should tackle this cross-chain ecosystem!

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I believe that promoting a rapid adoption of agEUR implies its integration into layer 1 protocols with low gas fees: Avalanche, Solana and Algorand are great options. As an Avalanche and Algorand fan, I’m particularly interested in your future integration developments.

I believe Avalanche is a great first choice due to the AVAX incentive program and massive growth of its ecosystem.

I would recommend that we focus on the networks with most economic activity and demand for ANGLE/agEUR to incentivize liquidity and start building integrations with other protocols there.

We just got Polygon. I would focus there for a moment; as you said the liquidity is crucial.

As for L1, I would try to push to have agEUR integrated with Curve on Polygon as well. They just launched eurtusd; perhaps there is a chance to have an agEUR/EURT pool.

And yes, this should be incentivized by ANGLE rewards, perhaps splitting 50% L1 + 50% L2 or slightly increasing the rewards using 75% L1 + 75% L2, aka an increase of 50% of the available rewards.

Once we got liquidity L1 + another L2 (Polygon) I would move to other ecosystems.

I don’t think we can afford to split the energies/rewards across multiple ecosystems at once or at least not immediately.

I would be opposed to increasing token emissions currently. I personally believe it’s important ag tokens are focused on one chain to minimize fracturing liquidity across chains. If I owned 100% of liquidity I’d honestly push for a total migration onto an Eth based L2 such as arbitrum. I’d love to see Angle deploy on zkSync, however curve has yet to deploy there which creates uncertainty for me. If we are deployed to Arbitrum I’d also consider reaching out to abracadabra to see if they’d be interested in running double incentives(ANGLE + SPELL(+ crv?)) for a MIM-agEUR curve pool. But those are just some of my thoughts, obviously open to other’s perspectives! It’s not clear to me if deploying to multiple chains will meaningfully impact agEUR liquidity

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I prefer the Fantom network. It is a dynamic and fast growing network. In addition, the Fantom Foundation actively supports new projects, thus avoiding marketing costs. I am sure that agEuro will be in demand there. Regarding rewards, one could start with small weekly distributions (for example, 10% of the distributions in the ETH).

I’m also opposed to increasing token emissions. We first need to fix the $ANGLE token. It’s currently just a farm token. We need to prioritize holding the token which means we need to focus on passive income generation.
Next, I also agree that ag tokens should be focused on one chain and that we work with Abracadabra to offer incentives for a MIM-agEUR pool.

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  1. Fix angle tokenomics above all else. Rev sharing, rebasing the token, etc. We need to have a formal vote on this and get this done first: Snapshot 2. Focus on eth mainnet prior to other chains.
  1. Which network/L2 should the tokens be bridged to next

Arbitrum and BNB for some reasons:

Binance Smart Chain: it seems that the ecosystem is too big to conquer however, since the launch of 1 Billion Growth Funds, the ecosystem is pretty quiet and forgotten. Recent activities from CZ such as considering a public offering to raise a “couple hundred million”, talking about regulations, in my opinion, are alarms indirectly saying: Wait for another spike on BNB ecosystem.
The Arbitrum ecosystem is expanding well and it does not have noticeable lending/borrowing projects (for now, it has CreamFinance. AAVE, MakerDao will come in the future). Angle can receive a good amount of liquidity when cash flow floods to Arbitrum and those giant projects arrive too (as long as incentives on Angle is more attractive that those giants)

  1. Should liquidity on those network be incentivized with ANGLE rewards and, if yes, how much and on which network specifically.

Liquidity should be in $ANGLE. APY can range between 30% - 50% - which good enough to compete with competitors and cover impermanent losses when users provide liquidity

Thanks for sharing your thoughts everyone!

As many of you pointed out, we are currently working on improving the $ANGLE tokenomics (more info on this post). Increasing the token emission is definitely not an option at the moment. (@magicturtle @RBP)

I think @arnor makes a good point in his post though, and it would probably be best to focus on mainnet and Polygon for a bit. agEUR/EURt pool on Curve is indeed a good idea.