[BIP-102] Enable the THX/stMATIC Gauge on Polygon with 2% cap

Summary
After approval of BIP-30 a number of gauges have been deactivated including the THX/USDC 80/20 pool. After some back and forth on the forum (Re-Enable the THX/USDC Gauge on Polygon) the THX Network DAO has decided to create 50/50 THX/stMATIC ‘core pool’ to align with the Balancer’s long term goals and BIP-19 proposal. The new 50/50 pool has been seeded and we kindly ask to approve the THX/stMATIC gauge.

References/Useful links:

Link to:

• Website thx.network
• Documentation https://docs.thx.network
• Github Page github[.]com/thxprotocol
• Communities discord[.]com/invite/u3DruB5pm5
• Summary of LBP launch medium[.]com/thxprotocol/thx-launch-mission-completed-learn-what-is-next-42345c88393b
• CoinGecko coingecko[.]com/en/coins/thx-network

(*sorry for the redacted links, having to work around the 2 links per post limit)

Protocol Description:

THX Network allows organizations to create and embed ERC20 and ERC721 tokens in their software platforms, increasing engagement and enabling new revenue streams. $THX is the protocol’s governance token and it’s active on both Polygon and Ethereum mainnet. At $0.04 the $THX token sits near all-time-high (ATH) against ETH.

The project has received funding from the European Union’s Horizon 2020 research and innovation program under agreement No 82888 (Blockpool) and No 824509 (Block.IS). And is part of the Techstars + ABN AMRO Future of Finance Amsterdam 2022 cohort.

Motivation:

  • The 80/20 THX/USDC pool is the primary source of $THX liquidity, created after the first Liquidity Bootstrapping Pool (LBP) launch using Copper on Polygon working closely with Alchemist and Copper team members at the time (dec. 2021)
  • The 80/20 pool has had up to 0.3% of the vote
  • The new 50/50 THX/stMATIC pool is established so that it aligns with the BIP19 initiative

THX Network DAO and $BAL
In closing, our DAO has acquire $BAL and (decided mid June, see gov[.]thx.network/t/diversify-20k-community-treasury-usdc-into-bal-vebal/51) and has its multisig address (0x4a30c80A2c41312ce4ee79f730C8D84cAD9f7B31) whitelisted for governance.

Specifications:

  1. Governance: DAO multisig 3 out of 4 with two being controlled by core team members employed by THX Network BV (limited company, established 2021, The Netherlands) and two from external community members.
    matic:0x14d4D5CA3Cc67879168dEC88aB018975B24E214b
    matic:0x2A430537e62e7620D7A984154045E3305977d84b
    matic:0xE554e4CC68cbD6Ea934C826cCAFec321f38ABCa5
    matic:0xe1E94562014da0CE71C72683eDcEE9D98936B533
    eth:0x14d4D5CA3Cc67879168dEC88aB018975B24E214b
    eth:0x2A430537e62e7620D7A984154045E3305977d84b
    eth:0xE554e4CC68cbD6Ea934C826cCAFec321f38ABCa5
    eth:0xe1E94562014da0CE71C72683eDcEE9D98936B533
    The multisig addresses control the $THX token allocations and the Treasury liquidity. Q4 onward will see the launch of Snapshot voting for $THX holders, see AMA (28:00) and for the slides twitter[.]com/THXprotocol/status/1546457897755869184

  2. Oracles: no external oracles are used.

  3. Audits: docs[.]thx.network/other/audits

  4. Centralization vectors: our API and single sign-on (SSO) infrastructure introduces some centralization in exchange for better UX. Overview docs[.]thx.network/developers/network
    Pools implement a RelayHub for executing signed transactions on behalf of our wallet. A single key is permitted to forward those signed transactions to the RelayHub.
    Context and mitigation: Private keys used by our backends are stored as encrypted secrets in our AWS parameter store. This store is only accessible with proper IAM access configuration. Two core team members are currently bearing those roles.
    Our authorization backend (OAuth2 OIDC) utilizes Torus network for private key distribution in our Web Wallet.
    Context and mitigation: we have added Metamask authentication for power users and are implementing Metamask transaction signing in our Web Wallet.

  5. Market History: the $THX token launched at $0.12 and currently sits at $0.04 and near all-time-high (ATH) against ETH. The 80/20 pool has been active since dec. 2021 and generated $1.6M in volume since then. It has about $800k in TVL.

Pool 0x8aC5FAfE2E52e52f5352Aec64B64FF8B305E1D4A (Polygon)
Gauge 0xb34d43Ada4105Ff71e89b8B22a8B9562E78f01E3

  1. Value:
    The 80/20 THX/USDC pool is the primary source of $THX liquidity. The pool usually ranks number #10 by TVL and fees collected on Polygon.
    The 50/50 THX/stMATIC pool has just been seeded with $30k liquidity by the multisig and soon another ~$35k will be moved from Uniswap to this Balancer pool by the DAO.
2 Likes

https://snapshot.org/#/balancer.eth/proposal/0x0f9615f02d038b4c30bbdaa0d2af121a9d4fbb0858f64510ba9b8483376c0dee

1 Like

Update: the DAO multisig deposited an additional $40k into the pool, this liquidity has been migrated from Uniswap to Balancer!

5 Likes

Thank you everyone for voting ! :yellow_heart: