[BIP-418] Enable USDF - USDC Gauge [Arbitrum]

BAL Gauges
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PR with Payload

Summary:
Enable USDF - USDC Gauge on Arbitrum

References/Useful links:

Protocol Description:
Fractal is building web3 infrastructure allowing all on-chain financial assets to interact with and collateralize against each other via a universal margin account. The protocol operates tokenized lending pools (starting with USDF) from which assets are lent to borrower subaccounts. The lending yield is then passed to lender by way of USDF price appreciation (akin to cbETH).

Motivation:

The Fractal community of lenders benefits from a liquid secondary market for USDF, this creates a liquidity buffer, which avoids requiring borrowers to unwind positions when USDF gets redeemed. This reduces gas fees for the entire protocol. USDF is also designed to become a composable stable asset to be built upon by other ecosystem participants.

Specifications:

  1. Governance: The protocol is currently governed by the Fractal Network team through a Fireblocks MPC wallet.

  2. Oracles: USDF does not require third party oracles

  3. Audits: Zellic - Audit

  4. Centralization vectors: Fractal’s USDF is governed by an MPC. It also relies on USDC which is inherently centralized.

  5. Market history: USDF has remained soft-pegged to USDC in Chronos and Camelot pools. USDF can always be redeemed directly at app.fractalprotocol.org

  6. Value: This pool is intended to become the primary liquidity venue for USDF

Contracts

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): 0x25DDcad849de576c2A6c124984cE59e62739156D
gaugeType(string): Arbitrum

2 Likes
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https://snapshot.org/#/balancer.eth/proposal/0x86509890c2a0cad1f547a70cfc8772e59b15b88b09cb9d5e6aa05c9ea8ec2b4d

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Hey everyone, the Integrations Team has been working with the Fractal team to safeguard these contracts. We are still waiting on one more ownership transfer, so I’d recommend not deploying this gauge until that’s finished.

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Based on these recommendations, the Maxis will not merge the BIP-418 payload into this weeks changes.

Governance should be raised next week to cancel the gauge request unless a clear review by the Three Rocks rendering the Rate Provider not overly risky has been published before this Thursday.

Assuming everything is in place by Thursday, this Gauge can be added next week.

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Update: ownership has been transferred, so this is now safe to execute. It will take me a few hours to get the full review posted to GH.

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Great. Already past the cutoff point for this week, but assuming everything is in place, this vote as passed governance and we can load/execute the gauge add next Monday.

1 Like
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Integrations Team has reviewed this rate provider and deemed it safe for usage on Balancer. As always, please DYOR before investing funds.

1 Like