PR with Payload
Summary:
Enable a Balancer gauge for the Polygon jCHF - VCHF stable pool, coined 2chf (VCHF).
VCHF and jCHF are both Swiss Franc stablecoins. VCHF is backed by Swiss Francs and issued by VNX, and jCHF is backed by crypto and is issued by the Jarvis Network.
References/Useful links:
Jarvis Network:
Link to:
- Website: https://jarvis.network/
- Documentation: https://learn.jarvis.network
- Code: jarvis-network / apps / Mono-repo / Synthereum · GitLab
- Social: https://twitter.com/Jarvis_Network
- Audits: Add SynthereumV6 audit report (f50be59f) · Commits · jarvis-network / apps / Mono-repo / Synthereum · GitLab
VNX:
Link to:
- Websites: https://vnx.li/
- Code: https://gitlab.com/vnx/ethereum-contracts
- Social: https://twitter.com/vnx_platform
- Audits: https://vnx.li/transparency/
Protocol Description:
Jarvis Network
Jarvis Network is an ecosystem of protocols and applications to bring decentralized finance to real use cases. Its first protocol, Synthereum, allows borrowing and exchanging synthetic fiat currencies (jFIATs) on multiple EVM-compatible networks.
The Synthereum protocol has four modules:
- Liquidity Pools: exchange jFIATs back and forth for USD-stablecoins or other jFIATs without price impact at the Chainlink price feed.
- Credit Lines: borrow jFIATs against various collateral types.
- Wrappers: convert non-USD stablecoins for their jFIATs equivalent at a 1:1 ratio.
- Printers: mint uncollateralized jFIATs for flash loans, seeding money markets, or liquidity pools.
Most jFIATs have a direct fiat on and off-ramp (Mt Pelerin, Suarmi) or indirect (VNX, Paytrie, Transfero etc.), can be borrowed on jarvis.money, can be used for on-chain and off-chain payment (Request, Superfluid, Mt Pelerin) or for earning yield (Beefy).
VNX
VNX, a Liechtenstein-based company licensed by the Liechtenstein Financial Market Authority (FMA), is developing a more secure and reliable infrastructure for global transactions by introducing gold-backed and fiat stablecoins.
VNX fiat stablecoins expands investor capabilities in the crypto space by offering digital assets referencing fiat currencies. The first fiat referencing tokens presented to the market were VNX Euro (VEUR) and VNX Swiss Franc (VCHF). VNX stablecoins provide the ability for crypto users to trade in their native currencies as well as manage their portfolio more effectively: to hedge, trade, and profit with more options.
VNX Gold (VNXAU) is the first European multichain token backed by physical gold certified by the London Bullion Market Association (LBMA) and represents individual ownership of the gold (1 VNXAU token is equal to 1 gram of physical gold). With VNX Gold investors can get the same benefits as investing in physical gold, such as store of value, protection against volatility and inflation, and high liquidity – with complete digital convenience and freedom. The physical gold backing VNXAU is stored in an isolated, high-security vault in Liechtenstein, a country with stable economy, S&P AAA rating and an EEA member.
VNX tokens are traded on crypto exchanges such as LBank, BitForex, XT.COM and Emirex, and the list of trading venues is growing, so stay tuned to keep updated.
Token generation and all token services are carried out by VNX Commodities, a company registered with the Liechtenstein Financial Market Authority (FMA) under the TT Token Providers and Services Act (TVTG). The list of licenses can be found at the regulator’s registry at this link.
The total funding for the project is 7.3 million euros with the lead investor Woori Technology Investment (South Korea).
Motivation
There is no yield or on-chain liquidity for CHF Stablecoins, and the latter are yet to be integrated within DeFi.
The role of the 2chf (VCHF) pool is to increase the stability of VCHF (1), the on-chain liquidity of both VCHF and jCHF (2), and connect the VNX and Jarvis ecosystems (3). Together, these 3 points allow for building a Swiss DeFi ecosystem.
- VCHF peg: VCHF maintains its pegged thanks to on/off-chain arbitrages, since it is redeemable for CHF at a 1:1 ratio. The 2chf (VCHF) pool would enable arbitrages to happen entirely on-chain, increasing VCHF stability.
- On-chain liquidity:
- VCHF: since jCHF can be exchanged for USDC without price impact, then exchanging jCHF or USDC for any other token has the same price impact; users can swap VCHF to jCHF and then to USDC to access the latter’s liquidity or vice versa. This considerably increases VCHF liquidity.
- jCHF: jCHF main liquidity source is the Jarvis Liquidity Pool (primary market); without entering too many details, if the pool performs well, it will increase the number of jCHF minted, which will increase the liquidity in our Liquidity Pools and our Wrappers, which is vital to us; also, it is essential to us to have more liquidity sources (secondary markets), and this is why we are launching this pool.
- Connect ecosystems: the 2chf pool connects VNX and its VCHF to the jCHF’s ecosystem, enabling multiple use cases.
- DeFi on-ramp and off-ramp: on Polygon, VCHF can be minted from CHF and redeemed for CHF; this provides a DeFi entry and exit point for Swiss people.
- Credit without FX risk: borrow jCHF, swap for VCHF then off-ramp VCHF.
A few notes
- Jarvis LTD has started building positions in BAL, TETU and AURA. The Jarvis Network treasury (governed by the JRT token, which will soon be revamped using the ve-model, a new token called JARVIS, and an 80/20 JARVIS-ETH pool) has a position in TETU.
- Jarvis LTD and the Jarvis Network treasury will both supply liquidity in the Synthereum Liquidity Pool. They will use up to 50% of the fees generated through the Liquidity Pools for vote incentives for veBAL, vlAURA, tetuBAL etc. (we have already done this successfully for a few months now on BNB Chain with Ellipsis / DotDot).
- Moving forward, we will deploy a boosted pool using Midas whenever possible to avoid fragmenting the liquidity between AMM and money markets and earn higher real yield.
Specifications:
- Governance:
- Jarvis: no on-chain governance (vote via snapshot) and decisions are executed through a ⅝ multi-sig (only one team member in the signers).
- Polygon: 0x2709fa6FA31BD336455d4F96DdFC505b3ACA5A68
- VNX has no on-chain governance.
- Oracles: jCHF uses CHFUSD Chainlink Price Feed.
- Audits:
- Jarvis: https://learn.jarvis.network/risks-warning/audits
- VNX: https://drive.google.com/file/d/1CnBOk9PMyLbYMU5Nf0GgrOO4Y4h8kuRY/view
- Centralizing vector: jCHF is mainly collateralized by USDC; VNX is backed by Swiss Francs.
- Market history: jCHF has been live since August 2021 (on Polygon); it has never traded off its peg. However, it has inherited from a bad debt following the hack of Midas earlier this year. As a result, 237k jCHF are not collateralized. Despite this, jCHF has held its peg. VCHF has never lost its peg.
- Value:
- The 2chf (VCHF) pool will act as the main route on and off-ramp on Polygon for Swiss users and main route for arbitrages and the use cases mentioned above (on-chain liquidity, credit without FX risks, etc.).
Contracts
- 2chf pool: 0x70fF0078d55cE9C1A0E668f35eb4400a4300122D
- 2chf gauge: 0x852580e3E1C0Fd35DE426C5481670c1772525265
Specification:
The Balancer Maxi LM Multisig eth:0xc38c5f97B34E175FFd35407fc91a937300E33860 will interact with the GaugeAdderv4 at 0x5DbAd78818D4c8958EfF2d5b95b28385A22113Cd and call the addGauge function with the following arguments:
gauge(address): 0x852580e3E1C0Fd35DE426C5481670c1772525265
gaugeType(string): Polygon
