# \[BIP-416\] Enable STAR/USDC Gauge \[Arbitrum\] **URL:** \ **Category:** BAL Gauges\ **Created:** [August 25, 2023, 6:18pm UTC](https://forum.balancer.fi/t/bip-416-enable-star-usdc-gauge-arbitrum/5139 "2023-08-25T18:18:46Z")\ **Posts on this page:** 11\ **Page:** 1
**Author:** ![Simsala](https://yyz1.discourse-cdn.com/flex027/user_avatar/forum.balancer.fi/simsala/32/1358_2.png) [@Simsala](https://forum.balancer.fi/u/Simsala)\ **Post date:** [August 25, 2023, 6:18pm UTC](https://forum.balancer.fi/t/bip-416-enable-star-usdc-gauge-arbitrum/5139/1 "2023-08-25T18:18:46Z")
### PR with Payload [https://github.com/BalancerMaxis/multisig-ops/pull/491](https://github.com/BalancerMaxis/multisig-ops/pull/491) **Summary:** > This proposal is to add a veBAL gauge for the new STAR/USDC.e Stable Pool on Arbitrum. **References/Useful links:** > Link to: > • Website: [https://www.preon.finance/](https://www.preon.finance/) > • Documentation: [https://docs.preon.finance/introduction/overview](https://docs.preon.finance/introduction/overview) > • Github Page: [Preon Finance · GitHub](https://github.com/PreonMoney/) > • Communities [@preonfinance | Twitter | Linktree](https://linktr.ee/preon) **Protocol Description:** > Preon Finance is a CDP protocol built on Arbitrum that offers 0% interest borrowing on yield bearing assets. Preon’s core product is STAR, an overcollateralized USD stablecoin. **Motivation:** > This proposal aims to add a veBAL gauge for STAR/USDC.e 50/50 Composable Stable Pool. Platform incentives would help deepen STAR liquidity as we seek to diversify liquidity positions. We aim to incentivize pools, especially our veBAL gauge in coordination with Hidden Hand & Aura to facilitate incentivization and drive the Balancer bribe market forward **Specifications:** 1. **Governance:** Currently the governance is held by a multisig. Holders can be found here: [https://docs.preon.finance/information/multisig](https://docs.preon.finance/information/multisig) 2. **Oracles:** The protocol relies on Chainlink. 3. **Audits:** [https://docs.preon.finance/information/security](https://docs.preon.finance/information/security) 4. **Centralization vectors:** No single person has admin controls over the protocol. The treasury and some parts of the protocol are secured by an 4/8 multisig of public members. 5. **Market History:** $STAR is a new stablecoin. Been trending around $1.00 since inception. 6. **Value:** This is one of the few STAR pools deployed on Arbitrum resulting in high TVL on Balancer. We expect it to generate a significant amount of volume which will be beneficial for all LPs and users of Preon and the Balancer Ecosystem. Link to the pool: > **[Balancer](https://app.balancer.fi/#/arbitrum/pool/0xead7e0163e3b33bf0065c9325fc8fb9b18cc82130000000000000000000004a9)** > > A UI that supports core Balancer protocol functionality. Explore & create pools, manage liquidity, swap tokens, get veBAL and claim incentives. Link to gauge 10% cap: [0x329cAebB9be5144C5727347F64F8B3a3B109ec57](https://etherscan.io/address/0x329cAebB9be5144C5727347F64F8B3a3B109ec57) **Specifcations:** 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): `0x329cAebB9be5144C5727347F64F8B3a3B109ec57` gaugeType(string): `Arbitrum` ---
**Author:** ![jeffrey](https://yyz1.discourse-cdn.com/flex027/user_avatar/forum.balancer.fi/jeffrey/32/2417_2.png) [@jeffrey](https://forum.balancer.fi/u/jeffrey)\ **Post date:** [August 27, 2023, 1:35pm UTC](https://forum.balancer.fi/t/bip-416-enable-star-usdc-gauge-arbitrum/5139/3 "2023-08-27T13:35:50Z")
What’s the reason for choosing USDC.e but not native USDC? ---
**Author:** ![ZenDragon](https://yyz1.discourse-cdn.com/flex027/user_avatar/forum.balancer.fi/zendragon/32/1542_2.png) [@ZenDragon](https://forum.balancer.fi/u/ZenDragon)\ **Post date:** [August 27, 2023, 7:04pm UTC](https://forum.balancer.fi/t/bip-416-enable-star-usdc-gauge-arbitrum/5139/4 "2023-08-27T19:04:53Z")
To jeffreys point; wondering why not pair with the stable 4pool, USDC/USDCe/USDT/DAI ? ---
**Author:** ![Simsala](https://yyz1.discourse-cdn.com/flex027/user_avatar/forum.balancer.fi/simsala/32/1358_2.png) [@Simsala](https://forum.balancer.fi/u/Simsala)\ **Post date:** [August 28, 2023, 4:21pm UTC](https://forum.balancer.fi/t/bip-416-enable-star-usdc-gauge-arbitrum/5139/5 "2023-08-28T16:21:28Z")
Hello everyone, Thank you for your constructive feedback so far! The reason we have chosen USDC.e is simply because it’s the liquidity token we have been pairing ourselves with. We are open to switching it to USDC if needed. Regarding the question of why we are not using a Stable 4Pool, the answer is that these routes have become progressively more expensive to swap through. Additionally, we want to avoid adding excessive smart contract complexity to one of our Primary Liquidity Hubs. Please feel free to reach out if you have any further questions. cc @jeffrey @ZenDragon ---
**Author:** ![ZenDragon](https://yyz1.discourse-cdn.com/flex027/user_avatar/forum.balancer.fi/zendragon/32/1542_2.png) [@ZenDragon](https://forum.balancer.fi/u/ZenDragon)\ **Post date:** [August 29, 2023, 1:58am UTC](https://forum.balancer.fi/t/bip-416-enable-star-usdc-gauge-arbitrum/5139/6 "2023-08-29T01:58:05Z")
Some more points here, are you comfortable with a lower swap fee and A factor? 1% is quite high for a stable coin pool. Would expect 0.005 - 0.04% roughly, also i think the max A factor of 5000 is high for a newer stablecoin. A = 100 - 500 range is more conservative for something like this. Please let us know your thoughts. ---
**Author:** ![jeffrey](https://yyz1.discourse-cdn.com/flex027/user_avatar/forum.balancer.fi/jeffrey/32/2417_2.png) [@jeffrey](https://forum.balancer.fi/u/jeffrey)\ **Post date:** [August 29, 2023, 6:51pm UTC](https://forum.balancer.fi/t/bip-416-enable-star-usdc-gauge-arbitrum/5139/7 "2023-08-29T18:51:15Z")
> [@Simsala](#): > > Regarding the question of why we are not using a Stable 4Pool, the answer is that these routes have become progressively more expensive to swap through. Additionally, we want to avoid adding excessive smart contract complexity to one of our Primary Liquidity Hubs. That’s understandable; though the “swap” is not necessarity more expensive if you pair with the 4pool; as it’s swap fee percentage is only 0.01%, while the advantage is that you can swap usdt, usdc, dai etc “directly” to your stable, instead of finding another liquidity source for them to usdc.e first. Agree on “smart contract complexity” as it does introduce more complicated smart contract dependencies. ---
**Author:** ![Simsala](https://yyz1.discourse-cdn.com/flex027/user_avatar/forum.balancer.fi/simsala/32/1358_2.png) [@Simsala](https://forum.balancer.fi/u/Simsala)\ **Post date:** [August 29, 2023, 11:50pm UTC](https://forum.balancer.fi/t/bip-416-enable-star-usdc-gauge-arbitrum/5139/8 "2023-08-29T23:50:47Z")
Thank you for this. We have decided to make the following updates to the framework (please implement these changes as only the DAO has the authority to modify the values): - A Factor: 500, with scaling applied as TVL increases. - Swap fees: 0.04%, as proposed. We appreciate all the contributors for their efforts in reaching out and working towards enhancing this proposal! ---
**Author:** ![Simsala](https://yyz1.discourse-cdn.com/flex027/user_avatar/forum.balancer.fi/simsala/32/1358_2.png) [@Simsala](https://forum.balancer.fi/u/Simsala)\ **Post date:** [August 29, 2023, 11:53pm UTC](https://forum.balancer.fi/t/bip-416-enable-star-usdc-gauge-arbitrum/5139/9 "2023-08-29T23:53:36Z")
I agree that implementing the ability to swap between USDT, USDC, and DAI would be beneficial in the long run. However, for the initial iteration, our priority is to ensure maximum safety, especially since the average user is already taking a risk by minting a new stablecoin. I genuinely appreciate your suggestion, and we will certainly take it into account for future iterations of our pools within Balancer 🙏🏾 ---
**Author:** ![ZenDragon](https://yyz1.discourse-cdn.com/flex027/user_avatar/forum.balancer.fi/zendragon/32/1542_2.png) [@ZenDragon](https://forum.balancer.fi/u/ZenDragon)\ **Post date:** [August 30, 2023, 2:51am UTC](https://forum.balancer.fi/t/bip-416-enable-star-usdc-gauge-arbitrum/5139/10 "2023-08-30T02:51:09Z")
Just to recap updates: Pool remade as STAR/USDC, Fee = 0.04%, A = 500, and gauge cap = 10% ---
**Author:** ![Simsala](https://yyz1.discourse-cdn.com/flex027/user_avatar/forum.balancer.fi/simsala/32/1358_2.png) [@Simsala](https://forum.balancer.fi/u/Simsala)\ **Post date:** [August 30, 2023, 3:20pm UTC](https://forum.balancer.fi/t/bip-416-enable-star-usdc-gauge-arbitrum/5139/11 "2023-08-30T15:20:20Z")
Thanks for updating! ---
**Author:** ![Xeonus](https://yyz1.discourse-cdn.com/flex027/user_avatar/forum.balancer.fi/xeonus/32/3621_2.png) [@Xeonus](https://forum.balancer.fi/u/Xeonus)\ **Post date:** [August 30, 2023, 5:37pm UTC](https://forum.balancer.fi/t/bip-416-enable-star-usdc-gauge-arbitrum/5139/12 "2023-08-30T17:37:23Z")
[https://snapshot.org/#/balancer.eth/proposal/0xb7ef2951a58d3edd37035d98c4e61c3a95d503f477503c9db48f3501ec2e0e26](https://snapshot.org/#/balancer.eth/proposal/0xb7ef2951a58d3edd37035d98c4e61c3a95d503f477503c9db48f3501ec2e0e26)