- Deploy $750k worth of agEUR, currently in Euler, into the agEUR Senior Tranche built on top of Euler protocol;
- Whitelist Euler agEUR Senior Tranche in the IDLE gauges, allowing Angle to receive governance power in Idle protocol;
- Plan some cross-communication and community engagement to amplify the launch of this new risk-adjusted agEUR yield product.
- Improve the resiliency of the Angle treasury thanks to the built-in coverage;
- Accrue IDLE rewards from Gauges, on top of the yield generated by Euler;
- Stimulate the liquidity provision on the Euler market via the Junior Tranche (thanks to this Senior deployment);
- Outperform APYs provided by other €-based assets with the Junior Tranche;
- Expand the stablecoin use cases, introducing agEUR Senior Tranche as a conservative fund allocation to DAOs willing to diversify their treasuries while generating a yield.
Idle partnered with Euler to develop the Perpetual Yield Tranches (PYTs) based on their lending markets, providing a new risk-adjusted approach to yield generation. With PYTs, Euler pools can target both risk-averse users like DAOs’ treasuries and institutional with the Senior Tranche, as well as risk-oriented liquidity providers with the Junior one.
The first pool that will be released is USDC, followed by other stablecoins and ETH-based pools.
We know Angle’s relationship with Euler is optimal too, as reported in this conversation:
Given the openness and vision alignment between Angle, Euler, and Idle communities, we’d like to propose the launch of the agEUR PYTs based on Euler protocol.
The new market would represent a new product suitable for other DAOs’ deployments, and protocols looking to unlock on-top composability on Euro-based assets.
This would be a way to cement a long-term relationship and open up the doors to build up other synergies on the product side further down the road.
If the Angle community provides positive feedback, in about a week we will submit our proposal on Snapshot.
- $750k liquidity deployment
Today, Angle DAO owns $1m worth of liquidity deposited in the single-sided agEUR pool on Euler (2.08% APY).
With the deployment of 75% of that amount ($750k) into Euler Senior PYT, Angle would be able to generate a yield almost equal to the underlying one while providing a 15-20% APY on the Junior side.
In the case above the coverage for Senior would be minimal, but Junior side APY would have an ample incentive to drive liquidity deployments. With an equal amount of liquidity ($750k) coming into the Junior side, the Senior APY would be half of the underlying return, while the Junior one will outperform it by +50%. In this scenario, Angle’s deposit would be covered by Junior funds.
There you go, whether you’re a conservative LP or you’re a risk-on one, you now have a new bootstrapped agEUR yield product tailored to your profile.
With the support from Angle community for this deployment, Euler agEUR PYTs will be launched on mainnet and will be accessible via Idle website.
- Whitelist Euler agEUR Senior PYT’s gauge with Idle DAO
The scenario reported below presents how Angle can increase the generated yield (roughly 2x) by receiving only 10% of the stream allocated to Senior Tranches (990 IDLE/day).
Once Euler agEUR PYTs are live, Angle can whitelist the gauge to enable its Senior Tranche receiving IDLE incentives.
The governance process is described in the documentation here.
Here below is the most important information about the Idle protocol.
Longevity – Idle protocol is active since 2019.
Total Value Locked – $70m.
Decentralization – The Idle DAO was launched in 2020 and the protocol is fully permissionless.
Tokenomics – Governor Bavo (on-chain governance) + veToken model (IDLE distribution on PYTs via Gauges).
Fee – 10% performance fee on gains (no maintenance or withdrawal fee).
Security – 6 audits from Quantstamp, Consensys Diligence, Certik.
Backers – Consensys, Gumi Cryptos, Long Hash, Dialectic, GreenfieldOne, The LAO, Imran Khan, Qiao Wang.
More info about the product suite and architecture is available in the documentation.
About Idle DAO
Idle DAO is a decentralized organization that builds yield automation infrastructure for DeFi. From brand new DeFi protocols to institutional and DAO treasury managers, businesses of every size use our protocol to optimize capital efficiency and manage their treasuries within DeFi.
We believe that everyone deserves the best for their idle funds, both in terms of returns and risks. Over the past three years, Idle has rolled out the features and services, defining and shaping the yield automation space. Your money won’t ever sit still.