[BIP-564] Enable GHO/pyUSD ECLP Gauge

BAL Gauges
1

PR with Payload

Summary

@TokenLogic and @karpatkey proposes creating a new GHO/pyUSD Gauge.

GHO/pyUSD E-CLP - Range: -80bps to 50bps

The Aave Liquidity Committee (ALC), Trident Digital and Paxos intend to support this pool by coordinating deposits, voting and sourcing vlAURA votes via the Paladin Bribe market.

References/Useful links

GHO

pyUSD

Protocol Description

GHO & Aave Protocol
The Aave Protocol is a decentralized liquidity protocol that is deployed across many EVM compatible networks including but not limited to Optimism, Arbitrum, Avalanche and Polygon. Currently, the Aave Protocol has a TVL of approximately $11.63 Billion.

GHO is a decentralized multi-collateral stable coin that is fully backed, transparent and native to the Aave Protocol.

pyUSD & Trident
PayPal is a globally recognized leader in the payments and remittance industry. Its entrance to the crypto space with the launch of pyUSD represents a significant step into the Web3 world as the company looks to expand and improve its product offerings.

Launched in August 2023, pyUSD is a partnership between PayPal and the Paxos Trust Company, whose previous assets include USDP and BUSD. The code for pyUSD is built on Paxos previous success with the aforementioned USDP token. Paxos is a New York State Department of Financial Services regulated Trust that acts as a qualified custodian of fully bankruptcy remote and segregated funds. Paxos issued coins such as pyUSD are always redeemable 1:1 and its reserves are held in cash and US Treasuries.

Trident Digital is an experienced digital asset solutions provider that works with counterparties to achieve a number of goals across the crypto space. Trident Digital aims to scale stable coin adoption both within and outside the crypto market through strong relationships and experience navigating both the crypto and traditional finance markets. Our previous on-chain work includes facilitation of incentives for the USDP-PSM.

While the pyUSD/GHO pool currently holds no funds Trident Digital is working with partners to provide deep liquidity to the pool in the very near future.

Motivation

This proposal aims to add one new veBAL gauge.

GHO/pyUSD E-CLP - Range: -80bps to 50bps

Specification

  1. Governance:
  • AAVE, aAAVE and stkAAVE serve as the governance tokens for the Aave DAO. Holders can vote on proposals at both a Snapshot level and through the Aave DAO on-chain governance portal.
  1. Oracles:

No rate providers are used.

  • rateProvider0 (for GHO): 0x0 (none)
  • rateProvider1 (for pyUSD): 0x0 (none)
  1. Audits:

Aave v3

GHO

pyUSD

On the off-chain side Paxos works with Withum, a nationally-ranked audit firm, in order to provide timely monthly attestations of reserves backing pyUSD.

  1. Centralization vectors:

  • Aave Governance is decentralized, and all changes must go through a transparent and well-tested governance process.

  • Paxos is a centralized entity functioning in a similar way to Circle, the issuer of USDC. There is no governance structure outside of that dictated by the New York State Department of Financial Services.

  • All pyUSD is issued 1:1 against funds held in either cash or US Government Treasuries. All funds backing pyUSD are held bankruptcy remote with New York Banking laws protecting customer funds from being used to satisfy any debt of Paxos.

  • The E-CLP Pool type, the FTL Labs team’s multi-sig can - currently - pause the pool, change the swap fee and set the protocol fee.

  1. Market History:
  1. Value:
  • This pool is expected to drive meaningful TVL to Balancer and Aura Finance. The assets within the pool are not yield bearing. However, the DAOs will generate revenue from receiving a portion of the swap fees.

Pool Details

Link to Pool: GHO/pyUSD Pool - Range: -80bps to 50bps - 0x4c4Ed61D81F531Dcb34Ad4d498548917ABA3D193
Link to Gauges: B-GHO-pyUSD - 0xb71C90F165cf99d4004499fF058E265Aa68fAC85

Transaction: Transaction: 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): 0xb71C90F165cf99d4004499fF058E265Aa68fAC85
gaugeType(string): Ethereum

Disclosure

This proposal is the work of Tokenlogic and karpatkey who are both Service Providers and delegates within the Aave Ecosystem.

4 Likes
2

Hey all, Steffen from Superluminal Labs / Gyroscope here. Just like for the other GHO pools, we’ve worked with TokenLogic and karpatkey to calibrate this pool.

The pool is informed by GHO’s historic price path and a ranged expectation about its future price, and it uses the flexibility of the ECLP to achieve an asymmetric liquidity distribution. This pool will help Balancer develop pyUSD as an asset and further strengthen GHO liquidity.

The following chart shows liquidity (y axis) at price (x axis, as GHO/pyUSD in bp from 1). I’m also showing a hypothetical StableSwap (A=200) pool at the same TVL for comparison.

image
image1688×776 45.2 KB

6 Likes
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https://snapshot.org/#/balancer.eth/proposal/0xf3fe9797a4bca16d3b849c11fbeb8c5f13bdba02d3c9549a031a46033b88d27d

2 Likes