PR with Payload
Summary:
Describe what this proposal is about
The Avalanche Foundation has announced a “culture coin” or memecoin buying program that includes five different projects at this point and a Balancer pool encompassing them has been spun up. This pool acts as an index for the memecoins that the Foundation has purchased and there is a good chance that the pool will receive AVAX rewards. The pool is forecasted to grow soon and will have good volumes as these tokens are highly traded every day.
Emissions will be capped at 2 percent.
References/Useful links:
Link to:
• Website
• Documentation
• Github Page
• Communities
• Other useful links?
https://twitter.com/CoqInuAvax
https://twitter.com/TECHimproving
https://twitter.com/KimboAvax
https://twitter.com/GeckoInuAvax
https://twitter.com/nochillavax
Protocol Description:
Describe the proposed asset(s), the corresponding protocol(s), and historic prices of the token (price must come from the source of highest liquidity).
These tokens are memecoins that have been well integrated within the Avalanche DeFi ecosystem. Avalanche is an interoperable blockchain network that consists of subnets and a composability layer known as Avalanche Warp Messaging. Avalanche has been around for many years and established itself as a premier DeFi ecosystem in late 2021 through Avalanche Rush. The pool also holds USDC from Circle, one of the most trusted stablecoins within the space.
Motivation:
Explain why this pool needs incentivization
Avalanche is launching a much larger initiative around memecoins in which Balancer will likely be included within those plans. Potential dual token incentivization will result in growing the pool promptly while the underlying assets could potentially have outsized returns. Not only will the APR on the pool be high because of volume, but the pool will hopefully receive extra rewards through the Avalanche Foundation while the price of the underlying memecoins goes up in value.
Specifications:
- Governance: Provide current information on the protocol’s governance structure. Provide links to any admin and/or multisig addresses, and describe the powers afforded to these addresses. If there are plans to change the governance system in the future, please explain.
Each of the tokens listed currently does not have governance but is decentralized and well-regarded within the community. They are memecoins and their LPs have been burnt and contracts renounced. The tokens at minimum have 8000+ holders and are listed in a variety of DEXes and CEXes.
- Oracles: Does the protocol rely on external oracles? If so, provide details about the oracles and their implementation in the protocol.
COQ currently has an oracle as it is by far the largest and most liquid memecoin within Avalanche but the other tokens other than AVAX and USDC do not yet have an oracle or price feed.
- Audits: Provide links to audit reports and any relevant details about security practices.
Avalanche has had many audits done, but as the other assets are memecoins, they have not had any but their contracts are generally forked from well-known token contracts.
- Centralization vectors: Is there any component of the protocol that has centralization vectors? E.g. if only 1 dev manages the project, that is a centralized vector. If price oracles need to be updated by a bot, that is a centralized vector. If liquidations are done by the protocol, that is also a centralization vector.
Each asset has a relatively diverse holder base with a top 100 holder concentration of almost under 60 percent for each asset. The assets are fairly new so the decentralization of their holders is still in the early stages but for memecoins they each are properly diversified at this point.
- Market History: Has the asset observed severe volatility? In the case of stablecoins, has it depegged? In the case of an unpegged asset, have there been extreme price change events in the past? Provide specific information about the Balancer pool: how long has it been active, TVL, historical volume? You must provide a direct link to the pool AND a link to your pool’s gauge.
As each of these assets is memecoins other than AVAX and USDC, they are highly volatile. The assets have each gone up 10x or more over the course of the past couple of months but also down 50+ percent at times. The AVAX and USDC in the pool help smooth some of the volatility but the volatility itself helps the volumes and therefore fee generation. Also, because these assets are memecoins, they have a higher potential upside than some of the larger cap and more liquid tokens.
- Value: Is this pool intended to be the primary source of liquidity for the token(s)? If this is not the case, explain the expected value added to Balancer (can this pool generate consistent fees?)
Yes, the goal for this pool is to be the largest and most liquid on-chain pool for these memecoins that are grouped. They all should be decently correlated as the Foundation has announced that they are purchasing them and each token directly benefits from the success of the Avalanche ecosystem.
Child Chain Gauge: 0x72dD9b41FEc59cf58140cAb9C92CEfC8F212354D
Root Gauge w/ 2% Cap: 0x2911d599C3494A416B27c144E4084a6617cA4Ff0
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): 0x2911d599C3494A416B27c144E4084a6617cA4Ff0
gaugeType(string): Avalanche