[BIP-150] Enable wUSDR-USDC Gauge 2% Cap [Polygon]

Summary:

Enable gauge on the wUSDR bb-am-usd Stable pool

References/Useful links:

Website

Documentation

Github Page

Communities

Twitter

Protocol Description:

Real USD (USDR) is a stablecoin backed by tokenized Real Estate that natively yields 8-10%. It was created by Tangible, a RWA tokenization protocol.

Backing a stablecoin with Real Estate has 2 key competitive advantages that we believe add significant value to the stablecoin landscape:

  1. Yield - The tokenized properties in the Real USD treasury are leased to tenants. This rental yield is paid out daily to holders in the form of a rebase.

In addition to this if Real USD ever falls beneath 100% collateralization ratio, 50% of the daily rebase is instead added to the treasury to re-collateralize USDR.

  1. Real Estate price appreciation - When priced in FIAT Real Estate has a long predictable history of appreciation. Over the last 50 years, the average sales price of a house in the United States grew from $27,000 in Q1 1970 to $383,000 in Q1 2020.

This appreciation in the backing of USDR allows for interesting design mechanisms that contribute to additonal yield and lindyness of the system.

History:

Tangible has been around for 18 months tokenizing Fine wine, Gold bars, watches and most recently Real Estate. After tokenizing our first property we conceptualized Real USD.

Real USD has only been around a few months. We launched V1 with a slightly different design which after launch we realized could be improved significantly with “minting on gains”, so we quickly launched V2 and are now ready to scale liquidity and market cap. We have spent significant time sourcing a backlog of properties that are ready to be tokenized to ensure that as the USDR market cap grows, the treasury and yield can scale.

Motivation:

Real USD (USDR) is new, we are looking for ways to grow deep liquidity for it. Balancer’s mechanism for automatically bribing pools with yield bearing assets is what initially grabbed our attention and drew us here, as it will highlight the structural advantages of backing a stablecoin with yield producing Real Estate.

Specifications:

  1. Governance: Real USD, the treasury composition and changes to the design will be governed by locked TNGBL token holders, this governance is not yet in place but will be soon. 4 of 5 multisig already required for any changes.

  2. Oracles: We have our own oracles for properties at the moment, but are working with Chainlink to get set up, then true property valuations via 3rd party Hometrack.com can be reflected on chain in Real Time so the treasury values and the collateralization ratio are upto date, this also allows for “minting on gains” to work more effectively in real time.

  3. Audits: Our first audit completed, final version of report will be ready this week then will share here. (No major issues)

  4. Centralization vectors: The Real Estate obviously exists in the real world as is managed by an entity, Tangible Custody, this entity collects rent and converts to USDC and sends to the rent smart contracts.

  5. Market History: In our short time since launch we have not lost peg.

  6. Value: We have a pool on Curve but intend to only provide bribes and incentives on Balancer due to the advantages provided by BIP-19

Pool: MetaStablePool | Address 0x34a81e8956bf20b7448b31990a2c06f96830a6e4 | PolygonScan
Gauge: PolygonRootGauge | Address 0x21a3De9292569F599e4cf83c741862705bf4f108 | Etherscan

4 Likes

updated and verified the OP

pool is metastable with owner set to 0x000 and rate provider that does correct decimal points.

gauge is 2% capped, leads to the correct pool

1 Like

https://snapshot.org/#/balancer.eth/proposal/0x7b6c6ebb5e3cbb1716cd6ca65243e82537922daf836fa75c21621d20fac006fa