Partnership on Curve V2 between Angle and Reflexer

This is a proposal for a partnership between Reflexer and Angle on CurveV2.

Disclaimer: I am from Angle Core Team and I am proposing this to see whether our respective communities support the idea

Context

Angle is a decentralized stablecoin protocol. We have launched our first stablecoin, agEUR, three months ago and have become one of the biggest Euro stablecoin in the market.

As any stablecoin protocol, Curve is super important for Angle. So far we have successfully built and grown 2 pools: one agEUR/EURt/EURs pool, and one agEUR/ibEUR pool. We’ve got gauges for these two pools which now accumulate CRV and CVX rewards.

Building liquidity for other stablecoins has also been quite important for us: that’s why we accept FEI and FRAX as a collateral, and that’s why we have pools with them on other DEXes.

Proposal

Now that Curve V2 Factory pools are live, what we propose here is to make a common pool with RAI on Curve that both protocols incentive in a similar proportion with their native tokens: ANGLE for Angle Protocol and FLX for Reflexer.

The idea would be to start incentivizing LPs of the pool to grow it to a significant amount before getting a gauge vote there. ANGLE and FLX emissions could then serve to bribe vlCVX voters.

Another option would be to directly apply to the gauge vote and then start bribing jointly on Convex to incentivize liquidity here.

Besides potential yield opportunities for RAI and agEUR holders, this factory pool would unleash several opportunities, among which:

  • it would open arbitrage opportunities as RAI and agEUR are tokens which are both linked to other tokens
  • agEUR and RAI are two assets integrated in many different places in DeFi. Opening a bridge like that through a Curve pool would allow people to seamlessly flow from one asset to another and enjoy the different things RAI and agEUR have to offer. For instance, it could also allow RAI holders to easily take advantage of agEUR’s bridging capabilities to other chains

Overall, curious to hear community’s feedback on this pool! The key point here is that to get the gauge on Curve, it’s crucial to be confident that the gauge will get volume which I am given the different nature of the two assets and the integrations they both have!

3 Likes

Awesome proposal, thank you for posting!

A possible path forward is for Reflexer to incentivize a agEUR<>RAI Curve v2 pool with 20 FLX per day, assuming the Angle community would be open to match these incentives.

We can go on the Votium route as opposed to general liquidity incentives.

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I also think that the Votium route would make sense here!
20 FLX per day is something that I think the Angle community could agree to match! Just need to get a sense of the feeling here but I don’t know why not

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Nice proposal!

  1. Are you also considering making RAI a collateral of agEUR?
  2. I’m also interested in agUSD backed by RAI.

I don’t think we’re going to launch a USD stablecoin in the short term.

But when it comes to backing agEUR with RAI, we’ve already thought about it! The thing is that we feared that we would not have people willing to hedge RAI’s price variations with respect to the Euro which made the risk reward ratio of it not worth it!

Still an option for the future!

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I think current RAI holders knows well about the price dynamics and can be the HAs.

Borrowing agEUR for RAI collateral? Now, that’s a nice thought for my European business. Hope this sees the light of day <3

It looks like Curve v2 factory pools integration to 0x is on going. chore: Read Curve factory pools by dekz · Pull Request #431 · 0xProject/protocol · GitHub

Curve’s inter-v1-v2 router was deployed ( Vyper_contract | Address 0x8e764be4288b842791989db5b8ec067279829809 | Etherscan )and available through curve.exchange .

I suggest we pursue this on Balancer. Balancer has everything that Curve has andSome.
veBAL is new and hasn’t been saturated to the point that veCRV has thus, bribing fruits much more liquidity on Balancer than on Curve.

What’s the argument for doing this on Curve?