PR with Payload
Summary:
H2O Data has been a staunch supporter of psdnOCEAN/OCEAN LP ($950K TVL) on Balancer from the outset. psdnOCEAN serves as a liquid staking token for veOCEAN. Much like veOCEAN, it accumulates rewards, but stands apart as it can be converted back into OCEAN via the LP at any moment, highlighting the criticality of pool liquidity. The pool’s liquidity was spurred by OCEAN rewards courtesy of H2O Data. However, with the introduction of the Gauge, BAL/AURA emissions will now further fuel the incentive for liquidity provision, amplifying the pool’s attractiveness.
References/Useful links:
Link to:
• Website: https://www.h2odata.xyz/
• Documentation: Welcome to H2O - H2O: A Non-Pegged Stable Asset for Data Economy
• Github Page: H2O · GitHub
• Communities:
Twitter: https://twitter.com/H2O_data;
Discord: H2O;
Telegram: Telegram: Join Group Chat.
Protocol Description:
H2O protocol is a protocol related to the emerging Data and AI economy (DataFi). Originating as a fork of RAI by Reflexer, H2O Data emerged in 2022 as a non-pegged stable asset backed by OCEAN. It has since transitioned towards crafting liquid staking derivatives aimed at governing non-liquid Data Infrastructure Tokens. The first token that was launched is psdnOCEAN which is a liquid staking derivative of veOCEAN.
Upon locking veOCEAN, users can garner rewards from both Active and Passive Data Farming. Unlike psdnOCEAN, veOCEAN is not a transferable asset. veOCEAN aligns closely with veCRV in functionality, accruing rewards while necessitating active vault management from users, adhering to the protocol until their lock tenure concludes (with a maximum lock of 4 years). psdnOCEAN, as a liquid staking token of veOCEAN, parallels the cvxCRV - veCRV dynamic. It empowers users with liquidity, enabling them to continue reaping rewards. This comes with a minor fee levied by the H2O Data protocol overseeing psdnOCEAN, ensuring users maintain liquidity while still enjoying rewards.
Motivation:
psdnOCEAN/OCEAN pool is highly important to H2O Data and OCEAN, as it is the only pool which users can use to exit/entry the psdnOCEAN ecosystem. Additionally, users are incentivized to provide liquidity into this pool as they will be eligible for OCEAN and PSDN rewards. The proposed gauge will give the chance to incentivize even higher rewards for the pool, thus bridging the gap between psdnOCEAN-OCEAN even further.
The current sustainable yield for providing liquidity to the pool is around 20%. We expect to significantly increase the APR with enabling Balancer Gauge, via Aura. After that, the pool would naturally grow and attract even further user base into the ecosystem. Additionally, we expect to facilitate even further incentivization with Aura or alternatively Hidden Hand, our partners through New Order Incubator.
Specifications:
- Governance:
H2O Data is currently governed by $PSDN & $vlPSDN, a governance token of H2O Data and a Balancer LP token 80PSDN-20WETH pool respectively. PSDN can be purchased on the open market, or obtained by participating in psdnOCEAN/OCEAN LP. There is a discussion to further establish governance under psdnOCEAN, where the psdnOCEAN LP and everything related is managed solely by psdnOCEAN & psdnOCEAN/OCEAN LP token pro-rata. The vote/discussion is yet to be finished.
- Oracles:
The protocol does not rely on external oracles.
- Audits:
There were several audits, including the audit of psdnOCEAN, the token discussed in the proposal: Audits - H2O: A Non-Pegged Stable Asset for Data Economy
- Centralization vectors:
psdnOCEAN is not upgradeable.
The team is unable to mint infinite psdnOCEAN.
Multisig is managed by 3 wallets, but the Multisig is in charge of H2O protocol and treasury, not psdnOCEAN.
psdnOCEAN is close to full ungovernance.
- Market History:
psdnOCEAN is an lsd of veOCEAN with a small discount to OCEAN, hence it reflects the price of $OCEAN.
Link to the CoinGecko - here
Link to the Balancer LP - here
Link to gauge 2% cap - here
- Value:
The psdnOCEAN/OCEAN pool would be the primary source of liquidity for OCEAN liquid staking token, a first stop that all users of H2O data would visit to exist the ecosystem or enter the ecosystem if it is cheaper than minting. The TVL of the pool is currently $950K. The pool organically grows with psdnOCEAN liquid staking volume and OCEAN ecosystem (that is continuously launching products), contributing to the Balancer Community.
Note: The owner of the pool is set to Zero address, which is equivalent to 0xba1ba1ba1ba1ba1ba1ba1ba1ba1ba1ba1ba1ba1b.
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):0x53Fa0546f307317dAA82371e94E8Dcd5CAd3345F
gaugeType(string): Ethereum