Improving ANGLE Token Utility

I like the idea. However, please think about incentivizing the people equally who have already staked their agEur and are holding ANGLE Tokens. High gas fees makes it very expensive to stake the coins. Also think about some cheap way of converting current ANGLE coins to veANGLE - because for people like me - who own only 200 ANGLE and have to pay 50$ or more just for the conversion does not make sense

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Totally support new tokenomics. Especially, that veAngle stakers get boost in rewards for LPing. Ready to vote :triangular_ruler:

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Just wait till devs deploy Angle on any other chain. It could be Polygon, Fantom, Moonriver, etc. In other words, low cost L1.

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When it comes to another chain, it’s mostly going to be about bridging the tokens, not the protocol, the Core of the protocol will remain in L1, in particular it’s going to be only possible to mint agTokens in L1

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The goal with this proposal is first to get a high level overview of what’s going to be implemented!
Saw one question about: “if you own enough veANGLE you can get more ANGLE rewards”?

The idea is that the more veANGLE you get the more ANGLE rewards, and owning veANGLE can give you a boost of up to 2.5x on the amount of ANGLE you’d receive if you did not have veANGLE

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This is a critical proposal that should go into effect immediately. $ANGLE is just a farm token without this.

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I like the idea Ready to vote

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I have already staked agEur and am currently receiving rewards. Once veAngle tokens are available and I lock my existing ANGLE coins - will I automatically get 2.5x rewards ?

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The idea of a veANGLE is definitely a good one. As an ANGLE holder, utility is definitely something which is very important to us. Implementing single-side staking will drive up the utility of the token itself which is good.

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We have refined what we propose, and the changes we propose to implement are the following:

The idea is to improve the Angle protocol and the ANGLE governance token utility through several changes:

  1. Implementation of a module to buyback ANGLE governance tokens using a portion of the interests generated by the protocol’s strategies. Each time interests are received from strategies, a portion of it directly goes to the buyback pocket, the rest is split between SLPs and surplus. The surplus main use is to cope with collateral price decrease when the protocol is not fully hedged
  2. Launch of veANGLE token similar to what Curve does. This token is not transferrable and can only be obtained after locking ANGLE tokens for a period of time (min 1 week, max 4 years)
  3. veANGLE token holders are the ones receiving the bought back ANGLE tokens: they can choose to do what they want of it. veANGLE holders are also privileged when it comes to staking in the protocol’s contracts (like staking agEUR): they can earn boosted yield compared with people that do not own any ANGLE token: the boost is still to be determined but if we stick to Curve it would 2.5x what someone with no token would receive
  4. Improvement of the staking contracts to be able to support multiple reward tokens (besides ANGLE reward): this would imply a migration of the liquidity
  5. Setup of a gauge system where veANGLE holders can allocate their voting power to decide where the ANGLE emission should go (like Curve does)
  6. Let veANGLE token holders participate in all on-chain governance votes, but also give the governor role to a multisig implementing the results from off-chain Snapshot votes where ANGLE holders and veANGLE holders could participate (like FRAX does)
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This is a critical change and should probably be prioritized above all else.

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The temperature vote went fine, let’s wait for the final results but I guess given the trends we’ll priorize that by a lot

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Hello Angle. I created this account to comment, as a casual staker of ageur. I don’t think this plan bodes well for Angle price. Price comes from utility, and this proposal makes the angle token very hard to monetize: you have to lock for 4 years to maximize revenue and 4 years is a very long time in defi. Additionally, I would suspect angle lockers to dump the angle they receive (they have expenses to pay and have to take a profit some day). So in the end the freshly bought angle will be sold right back, resulting in 0 price impact of ANGLE and the continued fall of it’s value.

Pickle went down the same route with dill and it hasn’t worked very well. CRV price wouldn’t be where it is without Convex. I would suggest to be a bit more like convex and a bit less like curve:

Allow access to share of angle revenue without locking (like with cvxCRV that can be sold). long term holders shouldn’t get a bigger share of the revenue. Companies give dividends to shareholders without requiring locking. I’d rather dump my angle than lock for 4 years or get progressively more diluted vs lockers.

Additionally, it is much easier to evaluate the value of ANGLE in terms of revenue generated in stable coin than in ever-fluctuating governance token price.

It is fair however to give more voting power to long-term investors. Convex requires you to lock for only 4 months to vote in gauges. But the power of cvx is quite different: cvx lockers can be bribed by protocols to buy liquidity. I doubt deciding on where to incentivize ageur would be worth much bribing.

It’s just my 2 cents but I’d be much more excited about a system like:

  • 1 contract to stake angle and get protocol fees as ageur
  • 1 contract to stake and lock (4 months or more) which allows to get protocol fees and voting power.
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Hi guys, did you study the possibility to get a reactor on Tokemak ? The ANGLE token is bleeding price-wise and as agEUR staking program represent 50% of the ANGLE emission, the inflation would be highly reduced if we got a reactor.
As stated in this article (The Evolution of DAOs. by Tokemak Founder, Liquidity Wizard | by Tokemak | Tokemak | Nov, 2021 | Medium)

TLDR: ALCX (used as an example in the article) will tremendously reduce its Liquidity Mining cost thanks to Tokemak mechanism.

I know this discussion was supposed to be about increasing ANGLE utility but reducing inflation would also benefit to ANGLE holders.

There is a Votium like to bribe TOKE holders in order to get a reactor, I would suggest to cut the ANGLE rewards on agEUR staking and delegate this to Tokemak.

To get an agEUR reactor, I would use a few weeks of ANGLE rewards originally intended to reward agEUR stakers on Angle protocol and use them to bribe TOKE holders on Votemak.com.

agEUR would still remain the highest Euro stable single side apy farm in town (but on Tokemak) and should see an increased in demand.

→ Angle protocol would then be in possession of more ANGLE tokens and so could incentivized the people who brings the more surplus (fees) to the protocol.

→ Switching to a fee distribution token instead of a CRV-like mechanism as discussed above by Potcasso.

→ The newly regain ANGLE tokens could also partially be used to rewards your former supporters : people who own the ANGLE NFT (3 differents level of rewards)
It maters to have a faithfull and reliable community.

→ Being present on Tokemak would increase awareness on agEUR and thus put the spotlight on Angle protocol.

I consider this opportunity a chance for Angle protocol to be able leverage Tokemak this early in its LM program, the reduction of the LM cost is huge and although 0xMaki has just joined Tokemak the protocol is still under the radar and getting a place in it still seems within the reach of a young project like Angle.

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Hey! Thanks for this interesting feedback! We’re also starting to think that having the protocol fees distributed as ANGLE is not the best solution.
If these ANGLE tokens are bought back, the effect is equivalent to distributing agEUR → like buybacks make price increase and if all distributed bought back tokens are sold by owners of veANGLE, then the price comes back to where it was before the buyback and veANGLE token holders made a profit from that.

One solution could be to distribute agEUR, or to distribute sanTokens

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That makes sense but if the proce of angle continues to fall you have to pay tx fees to dump regularly which is worse than letting ageur accumulate.

What is the rationale behind putting barriers for angle holders to access the protocol’s revenue?

I am personally desperate for a reliable euro stablecoin I can farm to get reliable income and I am hoping Angle becomes that but it requires a strong valuation of the ANGLE token.

Here are some ideas to maximize your capital efficiency:

  • let angle stake the curve 3eur lp tokens in convex so that angle farms crv and cvx.
  • use the accumulated cvx and/or veCRV to vote for the 3eur gauge or other ageur gauges.
  • additionally, bribe cvx lockers on votium to boost that pool.
    Angle will in effect own liquidity for life on curve

2nd idea, as pouncerk7 suggested:

  • Create tokemak reactor, and an angle tagEUR deposit contract, and reward angle to stakers while farming TOKE for angle so that you can then vote on allocating liquidity where you want.

Also, why reward staking agEUR? That money does nothing beyond boosting your TVL numbers with short term farmers.

Good ideas!

The rationale behind putting some barriers for ANGLE holders to access the protocol’s revenue is that we don’t want the protocol revenue to go to people who are here only for the short term with Angle → by distributing this revenue to veANGLE holders, revenue goes to people who are here for the long term with the protocol and most incentivized with its success. It’s also a way to incentivize people to lock their tokens, thus reducing the circulating supply of the token.

I like your ideas for the capital efficiency, but the protocol does not control any of its agEUR, so we cannot really stake Curve 3EUR LP tokens in Convex to farm CRV and CVX. Only thing available at the moment is to bribe CVX lockers on Votium.

About rewarding agEUR, that was the easiest way to grow the protocol: if you grow agEUR, you grow the protocol, and can more easily break the chicken and egg problem. This makes it easier to fetch integrations. More and more we are incentivizing liquidity on exchanges

Thanks for your answers!

You have a curve 3eur staking contract that rewards ageur, couldn’t you make a v2 of this contract that puts the staked 3eur lp tokens on convex?

For the gatekeeping revenue to long term holders, I understand although disagree. It’s inconvenient for anyone participating and why would you need to lock people in for 4 years? Will these users really make better decisions for the protocol or will it simply keep a lot of people out, keep the price down and hinder TVL due to lower rewards?

The 3EUR Staking contract rewards ANGLE and not agEUR. Unfortunately, we cannot migrate people’s liquidity and we will start from now asking people to migrate their liquidity.

As for locking, 4 years is the maximum, people can lock up to just a week! This should most likely keep the price up as to receive rewards you should lock your tokens, and this will just decrease the circulating supply of the token

Updating this post with the tokenomics upgrade announcement article for reference: ANGLE tokenomics upgrade is on its way 🚀 | by Angle | Dec, 2021 | Angle Protocol

TLDR

  • veANGLE can be obtained by locking ANGLE from 1w to 4y (1 ANGLE locked 4y = 1 veANGLE).
  • veANGLE holders can get a boost on LP rewards up to x2.5.
  • veANGLE holders receive a share of the interests generated by the protocol.

We are now writing a series of articles to explain the details of the upgrade, will post the articles here as they are published!

ANGLE Upgrade Series