What is this about?

The discussion revolves around a proposal by Mariam for an updated project named Angle Protocol¹. The project aims to introduce a Euro and Real-World Asset (RWA) based yield source on Arbitrum, a Layer 2 (L2) solution, through the use of stEUR (staked agEUR)¹. The proposal requests a grant between 200,000 $ARB and 700,000 $ARB to incentivize various pools from November 2023 to January 2024¹. The grant will be used to deploy stEUR and native agEUR staking on Arbitrum, add $ARB as a token to mint agEUR natively on Arbitrum, and work on use cases and integration for stEUR¹. The proposal also includes a three-month plan for the deployment of stEUR on Arbitrum, with specific goals for each month¹.

How is the community reacting?

The community has shown a mixed reaction to the proposal. While some users, such as Thecryptostakr, Abeltherebel, and Strategicreserve, have expressed support for the proposal, citing the team's transparency and the potential for the project to consolidate Arbitrum as the Ethereum L2 DeFi hub^9,10,11, others like Meyaf320219 have expressed concerns about the large amount of ARB being used to incentivize the liquidity of a single token². However, after Mariam revised the draft proposal to include native Arbitrum protocols and revised the size of the request⁷, Meyaf320219 found the revised amount to be more reasonable⁸.

Why this is positive?

The proposal is seen as positive due to its potential to foster growth and innovation within the Arbitrum ecosystem¹. The introduction of a Euro and RWA based yield source would make Arbitrum the first L2 to provide such an opportunity, increasing Euro liquidity on Arbitrum and enhancing the diversity of stablecoins and currencies in the Defi ecosystem¹. The proposal also includes further building on Arbitrum on Angle’s part, including adding $ARB as collateral to mint agEUR³. The team's responsiveness to community feedback and their willingness to revise their proposal based on suggestions have also been appreciated^7,10.

Why this is negative?

The main concern raised by the community is the large amount of ARB being used to incentivize the liquidity of a single token². Some users have questioned why the proposal does not take into account any other Arbitrum protocols². However, these concerns have been addressed by Mariam, who clarified the scope and value of the program for Arbitrum, the amount requested, and the inclusion of other Arbitrum builders³.