Ideas for utilizing excess protocol reserves to bring lasting value to Angle Protocol

As has been discussed on discord recently, the protocol has a reasonably substantial amount of excess reserves that can (and should) be used to create flywheel effects for the protocol. The goal of this thread is to figure out the most cost efficient and effective ways we can deploy that capital in order to provide long term value for the protocol and to get that flywheel spinning.

Off the top of my head, here are some options for how to allocate the excess reserves:
-Buy CRV and max lock it, then boost agEUR pools.
-Buy CVX and lock it, then consistently vote for agEUR pools
-Buy CRV and lock it as sdCRV, then consistently vote for agEUR pools
-Buy BAL and lock it as sdBAL, create an agEUR pool on Balancer and vote for it.

I’m not sure what the most capital efficient choice is, so I welcome anyone to comment who has done that analysis. And of course highlight options I have overlooked.

Another side note is that we could buy CRV and/or CVX and lock it, then collect bribes in the near term until our agEUR/EUROC pools are ready to boost.

One last side note… we don’t have to deploy the entire excess surplus all at once. We could TWAP into these POL positions over time. This might make sense given that I believe we are only about 30%-40% through this bear market, and we may be able to get much better prices for tokens if we wait somewhat. Of course this is a balance between jumping on the EUROC launch opportunity and solidifying our spot as the premier Euro based decentralized stablecoin, and also being mindful of market conditions so we don’t overpay for the POL.

This is a very open ended discussion. Please give all of your ideas for how we can maximize this opportunity, no matter how unique or crazy!

Thanks for sharing this and opening the discussion!
Agree that we should not distribute the entire excess surplus.

In terms of other options for the surplus, here is what I also had in mind:

  • LPing to seed pools (cf what we had in mind on Optimism and Arbitrum)
  • potentially using the surplus to fund the agEUR savings rate in the first place
  • paying for the agEUR listing on major centralized exchanges

All these options come with trade-offs and are not mutually exclusive, but good to lay them down here

I like the idea of a TWAP on protocol surplus!

On using the surplus, I am also in favour of:

  • Find a good value protocol to boost agEUR pools, and I would focus on newer protocols.
  • Listing on major centralized exchanges
  • LPing to seed pools, but best option is to use AMOs

I don’t think financing the agEUR savings rate is a good idea as it will just be a temporary boost in agEUR supply, without any synergies for future use cases.

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I agree on that one, I think distributing the reserves for the agEUR savings rate wouldn’t be sustainable.

I think paying for agEUR (and potentially ANGLE) listing on exchanges is a very good option benefitting both the protocol and all users in the long-run !

I don’t have any strong opinion on buying other governance tokens. If they bring obvious returns, like CRV does, then why not, but we should be careful to not disperse our efforts too much (cf BAL and Balancer pool).

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Posted this proposal for token investments with the protocol surplus: AIP 18 - Budget for token acquisition using the protocol surplus

Idea would be to start by acquiring EUL tokens from the Euler protocol