Fei Money

Authors: @Eswak

Context

The DAO currently holds 10M$ of agEUR (Euro stablecoin) paired with 10M$ of FEI in Uniswap. The DAO currently holds 160k ANGLE (85k$).

Angle protocol is a stablecoin that issues an Euro stablecoin, agEUR. The agEUR token can be minted with various collaterals (DAI, USDC, FEI, FRAX), and EUR/USD volatility is hedged by allowing users to open leveraged positions on agEUR/FEI for instance.

Angle recently changed their tokenomics to use Curve’s “ve model”.

Summary

• Move the DAO’s ANGLE tokens to a new Angle delegator contract
• The ANGLE delegator contract does a snapshot delegation to a target address, and “plays the veToken game” (more details below).
• The DAO and OA Timelock can change the veANGLE delegatee.
• Initial delegatee of the protocol’s veANGLE tokens will be eswak.eth

Motivation

The veANGLE tokens can be used to direct more incentives towards pools that contain FEI, so we should use it to increase FEI demand.

A lot of protocols are moving to veToken models, so I think it’s interesting to validate that capacity of the TribeDAO on-chain with a relatively small position (20M$) and a relatively small governance power (85k$ veANGLE).

Specification

Delegatee of the protocol’s veANGLE tokens have to be an externally-owned account, because they need to be able to vote on Snapshot. For on-chain voting, the OA Timelock and the DAO will be able to use veANGLE to vote in Angle’s OZ governor. The delegation is only for snapshot voting.

To “play the veToken game”, the protocol will do the following :

• Permanently lock ANGLE tokens to veANGLE. Locking is done for 4 years, and can be renewed anytime permissionlessly to avoid voting power decay, unless the contract is paused.
• Have the capacity to stake tokens in Angle’s gauges (only PCV_CONTROLLER_ROLE can call this function).
• Vote for gauge weights (DAO or OA Timelock).
• Claim ANGLE rewards from gauges, and vote-lock them to veANGLE (permissionless).

If this snapshot vote passes, I will create a post on the Angle forums, so that our veANGLE delegator contract is whitelisted to vote-lock ANGLE for veANGLE (they have a similar smartwallet protection as Curve does).

The DAO proposal will include a migration of our LP tokens from their old staking contract to their new gauge system.

Voting The proposal will use simple choice voting. Voting options :

Yes, use ANGLE as described No, more discussions needed