Idle <> Angle partnership proposal via Euler PYTs (Part 1)

This is a proposal to:

• Deploy part of the agEUR currently in Euler into the agEUR Senior Tranche built on top of Euler protocol

This proposal is composed of 2 snapshots:

• Idle <> Angle partnership proposal via Euler PYTs (Part 1): voting on the liquidity deployment size
• Idle <> Angle partnership proposal via Euler PYTs (Part 2): voting on the duration of the liquidity allocation

Context and motivation

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.

We know Angle’s relationship with Euler is optimal too, as reported in this conversation.

So 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.

Benefits for Angle

• 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.

Proposal

Today, Angle DAO owns $1m worth of liquidity deposited in the single-sided agEUR pool on Euler.

This snapshot proposes to allocate a portion of those agEUR funds into Euler Senior PYT, to design a pilot case and let Angle get familiar with Idle. The liquidity deployment will be finalized after the whitelisting of the Euler agEUR Senior PYT into IDLE gauges.

Protocol due diligence is available here. More info about the product suite and architecture is available in the documentation.

Vote Options

Proposed liquidity deployment sizes are:

• $250k
• $500k
• $750k
• Do nothing

The snapshot to determine the duration of the liquidity allocation is available here.