DAO to DAO Swaps


Recently some DAOs came to us to discuss DAO to DAO swaps.

There has been a proposal on FRAX governance to do a FXS-ANGLE swap.

We have also had StakeDAO that proposed SDT-ANGLE swap, as well as LOBIS which proposed LOBIS-ANGLE swap.

The ANGLE tokens we could use for these swaps could be taken from the DAO Treasury.


Before engaging in any swap, let me share some thoughts on the rationale for doing some swaps.
First, I think DAO to DAO swaps are an interesting way to gain voting power and influence in different protocols.

For instance Frax has a agEUR/FRAX gauge incentivized with FXS. Owning some FXS could be a way for the DAO to push for more weights on the gauge and hence more FXS rewards for agEUR holders.

The same goes for LOBIS. The protocol controls some CRV, FXS, and TOKE. Owning LOBIS tokens could help Angle have a say in the governance of these protocols: to vote for instance in Curve gauges. They may also add ANGLE bonds which’ll be a super interesting use case for ANGLE holders.

Last for StakeDAO, the SDT token is probably going to gain some influence in this protocol: Stake DAO has been building on top of Angle Protocol, this is a way to make sure that interests are alined between protocols and that Stake will keep adding value to Angle. SDT is also a token that generates revenue which could be used for the protocol.


Before doing any swap, it’s going to be important to check that the sell pressure from the swap is going to be null: protocols should do this to gain voting power and not to sell at a later time. I believe we should make sure the ANGLE tokens that are given are going to be locked (when that’s available)

We need to make sure that the protocols we exchange ANGLE tokens with are going to keep acting for the good of Angle. Let’s say a protocol starts accumulating some voting power on Angle, we want to make sure they’ll not be pushing for gauges that have no interest for the protocol and that serve their needs.

The risk of vampire attack is also present and should be kept in mind: Angle should be a decentralized protocol and we want to make sure that ANGLE holders (and later veANGLE holders) remain the real governors of the protocol and not another protocol doing it for its own interest.


This is just a post to present the thoughts around DAO to DAO swaps. I hope community will have some thoughts to share there too.
As the veANGLE model goes live, many more people will start gaining interest in Angle and want to own ANGLE tokens.

Each DAO to DAO swap should obviously be well calibrated with a fair price for both DAOs (like using a VWAP for a long period). My take would be to start with small amounts, see how it goes, before continuing with bigger amounts. Several swaps with the same DAO could be envisioned.

Snapshot votes will be posted before each DAO to DAO swap and community will end up deciding!


Hey everyone,
Ice Cube from the Lobis community.
Just wanted to introduce our project and explain why we are willing to partner with Angle.
Lobis could be defined as a friendly activist that aims to support essential projects of DeFi. We also provide an alternative to flywheel lockers for governance tokens of protocol using Curve-like tokenomics.
With our model, we are naturally incentivised to favor synergies between the different protocols we support, but we also feel it is healthy that our supported protocols own a stake in Lobis so they can have a say at the way we extract those synergies.
We strongly believe in Angle which is one of the most innovative stable coin protocols this space has seen for years. We believe we have a lot to bring through our bonds, but also through our stakes in Curve, Frax, Olympus and Tokemak.
We look forward to this partnership, and hope that our two communities will bring a lot of value to DeFi!

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Following the discussion on Lobis forum, Lobis has launched a Snapshot vote on their side.

The idea would be to start with a small $150k swap and then repeat it every two weeks till $1m worth of ANGLE tokens and LOBIS have been swapped.

The price of the swap would be taken based on a 3 day vwap prior to each swap.

What we propose the Angle community to vote on is:

  • authorize a $150k swap and continuation every two weeks till $1m of ANGLE-LOBIS tokens have been swapped
  • authorize the first swap but require a vote for continuation and between each swap
  • do nothing

Is it possible to see what value this partnership provides? Lobis seems an closed-end investment fund, would be great to have a metric like asset under management and the market cap (to see how over/undervalued it is).

Seems to me that it is a $13M market cap for $18M of assets. This is really small and I don’t see much strategic value. At least we get a discount but it still remains a startup investing which isn’t the business on Angle. I don’t buy the synergies at all. Angle is already backed by VCs with lots of connections.

There is also a question of respectability. If Angle wants to be the Euro stablecoin of reference, you can’t focus too much on the degen stuff.

Hearing your point on this. The discount definitely played on my decision to vote for the swap.

Respectability matters, but there is IMO a clear take to play by partnering early with new protocols for them to integrate agEUR from scratch.
FRAX has a playbook and has been super successful in doing that. This won’t change the long-term success of the project, but this could definitely help to grow faster in the short-term