Incentive Migration From Quickswap to Uniswap

Hey everyone,

This is a proposal to migrate incentives on Polygon from the Quickswap agEUR/USDC pool to a Uniswap V3 agEUR/USDC pool with 0.01% fees.

Context

Currently, 0.01% pools are being voted on Uniswap and vote should be executed by Sunday (10/04). As mentionned in this proposal, I believe it’s quite important for agEUR to be exchangeable with very low fees.

Not only does it facilitate on-ramping and off-ramping to agEUR, but it places agEUR at the center of DeFi, making it one of the “router” tokens.

Sebastien has conducted an experiment on Polygon with a 0.05% agEUR/USDC pool and consistently got a bigger volume relative to the liquidity in the pool than our Quickswap pool.

On top of that, there is currently a liquidity mining program going on with Uniswap (and distributed through managers like Gelato/Arrakis). APRs are getting super interested there for a high amount of liquidity.
Besides, with the recent LM 2.0 program that has been announced by Polygon, incentives for protocols on Polygon, rewards for LPs on Gelato could even further be increased.

Proposal

The proposal is hence to shift incentives from the Quickswap agEUR/USDC pool to a new Gelato token corresponding to a agEUR/USDC pool with 0.01% fees (if the vote for 0.01% fee pools on Uniswap works successfully).

Implementation

There is currently a gauge in Angle system for Quickswap agEUR/USDC, given that this is a cross-chain gauge, we could just keep votes the gauge (and so votes for it would still apply) but rather redirect the incentives that were supposed to go to Quickswap to a the G-UNI token.

Given that network is Polygon where fees are cheap, liquidity migration is going to be less painful than it could be on Ethereum mainnet and should barely cost several $.

Note that it is possible that two staking contracts for the same G-UNI tokens end up existing if we use our own contract to distribute ANGLE rewards and if Gelato has its staking contract on its side distributing MATIC and SPICE rewards. In this situation, people could easily switch from one contract to another to migrate their liquidity in function of where rewards are higher.

The reason for not directly centralizing everything in the same contract are multiple:

  • Gelato wants to keep the same staking contract across all its gauges and may not be ready to adapt to the contract Angle has
  • Their staking contract for SPICE rewards is not ready yet

Angle Staking contract would be similar to a LiquidityGaugeV4 but without any boostable reward token (because veANGLE only exists on Ethereum mainnet at this point).

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Update: Uniswap vote ended successfully and so we should be able to create agEUR/USDC 1bp pool in the next couple of days.

If there’s not much discussion here, what I propose is to submit this to a vote before the end of this week, to have it implemented for next Wednesday!

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