HOP Gauge Proposal
This is a proposal to add a gauge for the agEUR-HOP Uniswap v3 pool on Ethereum to the Angle Gauge system and enable users to assign gauge weight to it and receive $ANGLE emissions.
Uniswap pool address: 0x9cfa26bf9e3df63c78142b9ef15f959a0dd69050
About Hop Protocol
Hop is a scalable rollup-to-rollup token bridge. It allows users to send tokens from one rollup or sidechain to another almost immediately without having to wait for the rollups challenge period. It is one of the most popular bridges within the Ethereum ecosystem with over $3.3bn cumulative transfer volume.
HOP is the governance token of the Hop Protocol. The token was released along with the DAO launch in June 2022 in an airdrop to early community members and users.
- Hop · GitHub
- Solidified, Monoceros
The proposal is to include the agEUR-HOP UniV3 pool to Angle gauge system.
We propose to rely on Angle UniV3 incentivization mechanism for this gauge. This means that on the one hand liquidity providers of the pool will not have any particular action to do to be eligible for the rewards, and on the other hand, there will be no extra recurring cost for adding this gauge as it just implies computing the Merkle root that is updated weekly differently.
Value to the protocol
The agEUR-HOP has been live for a week and currently has $7,500 liquidity.
Incentivizing through a gauge the pool pairing the HOP token with agEUR will help attract more liquidity and create more awareness for both tokens. HOP is still in its infancy and although it has pools on Uniswap and Sushi, liquidity is still relatively low. With some initial rewards, the agEUR-HOP pool could become one of the main liquidity venues and grow with Hop as it progresses to become the #1 bridge protocol.
It will also be a kick-start to future integrations between Angle and Hop Protocol.
Overall, the more tokens agEUR has liquidity with, the bigger the volume and global usage will be. Like any stablecoin, agEUR is a standard, and it is only valuable if other people use it, having DAOs building liquidity for their token around agEUR and participating in Angle governance for that means is a first step towards a more global and widespread adoption of agEUR.
The risk with creating new gauges is that they cannibalize other existing gauges, also bringing value to agEUR and the protocol. This risk however can be controlled and the DAO has the means to adjust the importance of gauges relative to the value they are really providing.