AIP - 84: Pyth distribution to veANGLE holders

This is a vote to distribute the 500,000 PYTH allocation received by the protocol to veANGLE and staked sdANGLE holders.

Context

The protocol has received a 500,000 PYTH allocation from the Pyth Foundation. https://x.com/AngleProtocol/status/1755556390444081457?s=20

These were received as a retroactive reward for the protocol which started relying on Pyth oracles after the launch of the Transmuter mechanism for agEUR.

The protocol will continue to be powered by Pyth given the reliability of the services provided. While veANGLE holders have already faced in the past the downsides of the composability of the protocol sometimes relying on infrastructure from other systems (cf Euler hack), as the stakeholders most incentivized on the long term success of the protocol, they should also be exposed to the upsides that this composability brings.

Proposal

The proposal is to allocate the 500,000 PYTH tokens received by the protocol on Solana to veANGLE and staked sdANGLE holders based on their token balance on the 1st of March 2024 at 3pm CET.

The bigger the veANGLE balance (or associated staked sdANGLE balance) the bigger the share of the rewards distributed.

Rationale

While rewards distributions were stopped after the Euler hack, this recreates a precedent with the protocol distributing what it earns across its various activities to the most central stakeholders of the protocol: veANGLE holders.

We are developing at the moment with Angle Labs several projects for the protocol and idea is that each of them directly benefits to veANGLE. And this proposal is the first step towards launching this movement.

Reason here for looking into future balances is to give the opportunity for those who have not renewed their lock in a long time, or those who did not enter the system yet to do it (through sdANGLE potentially).

Implementation

We propose to use Merkl as a tool to reward the LPs here. Merkl is generalizing itself in a V2 that allows to reward any behavior, not specifically focused on concentrated liquidity.

Voting Options

1. For, allocate PYTH
2. Against, do nothing