PR with Payload
Summary
This proposal enables a Gyroscope gauge for a R/sDAI Elliptic Concentrated Liquidity Pool (E-CLP) on Ethereum Mainnet. The pool will be seeded with liquidity in the 0.9 - 1.001 range and two other pools with liquidity in the 0.95 - 1.001 and 0.98 - 1.001 range will follow soon. By deploying these new pools, users will be able to trade between R and sDAI at extremely low price impact in the 0.9 - 1.001 R/sDAI range. The deployment of this pool builds upon the release of the Peg Stability Module (PSM), aimed at stabilizing the R peg and providing a source of yield for R Savings Module depositors through the accumulation of sDAI.
Protocol description
Raft is a DeFi protocol that lets you generate $R, a leading decentralized USD stablecoin, by opening a CDP (collateralized debt position), or by depositing stablecoins into the Raft protocol reserve.R is backed by high quality collateral assets such as stETH (Lido Staked Ether) and rETH (Rocket Pool ETH) and reserve assets such as CHAI, the yield-bearing version of the DAI stablecoin. R aims to be the stablecoin of choice within the decentralized ecosystem, with deep liquidity across many trading pairs, a high yield, and a stable peg. As more use cases for $R develop, users will be able to spend, swap, and earn with $R. Users will also be able to leverage up to 6x on different LSD tokens in a single atomic transaction.
Motivation
The R/sDAI pool on Gyroscope is a natural progression from the PSM, offering swaps from R to sDAI with the best price impact conditions compared to other uniform liquidity pools. The pool will receive incentives that will be distributed based on the PSM’s ongoing usage and the development of the R peg over time. Liquidity providers in such pool will benefit from earning the DAI Savings Rate and from being depositors in the most capital efficient pool where to trade R.
The pool will have 5 bps swap fees, an amplification coefficient of 700 and a 10 bps upper price bound that enables the E-CLP to be highly capital-efficient. Functionally, this works by enabling arbitrary truncation of liquidity profiles from a given trading curve. In effect, the capital efficiency comes from bounding the trading curve to an expected trading range of the assets.
Specifications
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Governance: The Raft governance model focuses on being efficient, transparent, and community-driven, while maintaining a governance-minimized approach. The governance model will be strengthened further by the launch of a native token that confers governance power to its holders.
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Oracles: The pools rely on price feeds from Chainlink and Tellor
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Audits: Raft is audited by Trail of Bits and Hats Finance
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Market History: Raft was launched on June 5th 2023 and has attracted approx $65m TVL at its peak. The Raft team has worked with the Balancer community to launch two successful pools (see $R here, the R/DAI pool on Balancer here and R/wstETH pool here) . We would like to continue working within the Balancer ecosystem going forward.
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Value: The R/DAI pool deployed on Balancer has been among the top 5 pools on Balancer by trading volume in the last few weeks, exceeding $ 1 mln daily trading volume. We expect the R/sDAI pool on Gyroscope to generate a consistent amount of volume due to the capital efficiency embedded in the concentrated liquidity model and in the choice of pairing R with a yield-bearing asset like sDAI
Centralization vectors
- Liquidations are permissionless (anybody can liquidate)
- The key parts of the Raft protocol are immutable
- The Liquidity Committee includes 3 Raft team members. More to be added in the future as the Raft governance evolves
References / useful links
· Website: https://raft.fi/
· Documentation: https://docs.raft.fi/
· Twitter: https://twitter.com/raft_fi
· Discord: Discord
· GitHub: Raft · GitHub
Audits
Raft’s smart contracts have been audited twice:
Links to pool:
R/sDAI E-CLP: 0x52b69d6b3eB0BD6b2b4A48a316Dfb0e1460E67E4
Gauge on Ethereum mainnet for R/sDAI E-CLP: 0x3b861B81B086Ef0CfFA0B00Cd2dDB3d545ec9B98
Specifications:
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): 0x3b861B81B086Ef0CfFA0B00Cd2dDB3d545ec9B98
gaugeType(string): Ethereum