PR with Payload:
Summary:
Enable a Balancer gauge for the Gnosis Chain jEUR - EURe stable pool, coined 2eur (EURe).
EURe and jEUR are both Euro stablecoins. EURe is backed by Euros and issued by Monerium, and jEUR is backed by WXDAI and is issued by the Jarvis Network.
References/Useful links:
Jarvis Network:
Link to:
· Website: https://jarvis.network/
· Documentation: https://learn.jarvis.network
· Code: jarvis-network / apps / Mono-repo / Synthereum · GitLab
· Social: x.com
Monerium:
Link to:
· Websites: https://monerium.com/
· Code: Monerium · GitHub
· Social: https://twitter.com/monerium
· Audits: none
Protocol Description:
Jarvis Network
Jarvis Network is an ecosystem of protocols and applications. Its first protocol, Synthereum, enables an on-chain FX market by allowing to buy (mint) and sell (redeem) synthetic fiat currencies (jFIATs) at the oracle price on multiple EVM-compatible networks.
On Gnosis Chain, the Synthereum protocol has allows to mint jFIATs by buying them from the protocol with WXDAI at the EURUSD Chainlink price feed, without price impact, or with EURe at a 1:1 ratio. When users buy jFIATs with WXDAI, the WXDAI are deposited into the protocol reserve. The reserve lend its WXDAI on the RealT RMM v3 market, an Aave v3 friendly fork that accepts tokenized real estate as collateral. The governance can move funds from RMM v3 to Aave v3 or can hold them without lending them.
The reserve also holds the WXDAI of liquidity providers. When users sell their jFIATs, the protocol buys them back with the WXDAI of its reserve. Liquidity providers earn trading fees, profits and losses from the users trading, and part of the interests generated by the reserve being lent, the rest being kept by the protocol’s treasury.
Monerium
Monerium is authorised and regulated as an Electronic Money Institution (EMI). Monerium offers services to residents of the European Economic Area, the UK, and Switzerland. Monerium is authorised to issue e-money tokens on blockchains.
Monerium issues the EURe, a Euro stablecoin with a 102% backing. EURe is more than one-to-one backed in high-quality liquid assets and is redeemable on demand. Unlike a bank, an Electronic Money Institution can only safeguard customer funds but not make loans.
Motivation:
The role of the 2eur (EURe) pool is to increase the stability of jEUR and EURe (1), their on-chain liquidity (2), connect the Monerium and Jarvis ecosystems (3), and generate yield while being exposed to Euro (4). Together, these 4 points allow for building an European DeFi ecosystem on Gnosis Chain and will help us growing our ecosystem on Gnosis Chain.
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EURe and jEUR stability: since EURe can be minted from Euros at a 1:1 ratio and jEUR from WXDAI at the EURUSD price feed, this pool will allow for performing arbitrages between primary markets and secondary markets, increasing both jEUR and EURe stability.
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On-chain liquidity:
· EURe: since jEUR can be exchanged for WXDAI without price impact, then exchanging jEUR for any other token has the same price impact as exchanging WXDAI; users can swap EURe to jEUR and then to WXDAI to access the latter’s liquidity or vice versa. This considerably increases EURe liquidity.
· jEUR: jEUR main liquidity source is the protocol’s primary market; but the liquidity depends on the amount of WXDAI supplied by liquidity providers. When the liquidity on the primary market does not allow to buy more jEUR, secondary markets are important. This pool will act as the main secondary source of liquidity.
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Connect ecosystems: the 2eur pool connects Monerium and its EURe (essentially an IBAN connected to the Blockchain, and a fantastic on and off-ramp) to the jEUR’s liquidity and ecosystem, enabling the creation of an indirect DeFi on-ramp and off-ramp for jEUR using both EURe native on and off-ramp and its integration like with Gnosis Pay.
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European users looking to earn yield with stablecoins have to face FX risks, that could hinder their performance. Having a pool on with only Euro stablecoins will allow to earn yield by keeping an exposure to Euros.
Growing our jEUR ecosystem on Gnosis Chain:
We want Gnosis Chain to become the base chain of our jEUR. Even though our protocol is deployed on various chains, and each deployment is indépendant from each other (meaning that jEUR on Optimism is not the same as jEUR on Polygon or Gnosis Chain), historically, jEUR has mainly been used on Polygon.
But, on Polygon, the jEUR had a few issues leading to a depeg, and slowing down a lot our growth there (these issues are currently being addressed and being fixed step by step). Three issues caused this situation on Polygon:
- · Hack of two money markets, where jEUR has been supplied by our AMO modules or by users. In the first hack, the hacker stole jEUR from Midas and redeemed them through our stability modules (our reserves of EURe and USDC). In the second hack, the hacker stole collateral from 0vix, so users who had loans could not repay them to get back their collateral and sold their jEUR through our stability modules. This removed a part of the liquidity on our stability module but did not create a depeg.
- · On Polygon, we have a CDP module to borrow jEUR without paying interests. With the bull market, borrowing jEUR and redeeming them for USDC became the cheapest options for leveraged traders. This emptied the liquidity in the stability module.
- · We also have pools with less liquid euro stablecoin, and jEUR has been used as exit liquidity for these stablecoins, removing what was left in the stability module.
This led to the depeg, and is currently being addressed: a proposal to shut down the CDP module has passed, and the treasury of the protocol will be used to reimburse the bad debt (for now the treasury can cover it with its holdings in non-JARVIS token, but the decision has been made to keep growing the treasury before repaying the bad debt to do not deplete the treasury).
On Gnosis Chain, we will only have pools against liquid euro stablecoins like EURe, EURA, XDAI or ETH, and we will not deploy our AMO or CDP modules.
Regardless of the situation on Polygon, we do feel that it is more strategic for us to focus the growth of the protocol on Gnosis Chain, due to its activity, ecosystem (EURe, Gnosis Pay/Card, gas to be paid in XDAI, etc.) and this pool will be very important to us.
A few notes:
· Jarvis LTD has acquired BAL and AURA and locked them. The Jarvis Network treasury (governed by the JARVIS token, which will soon be using the 8020 ve-model, has a position in AURA.
· We are voting and bribing for our pools, as a protocol, as a company and as a community: we have various community-led flywheels group within our community that help us growing the liquidity and yield.
· In 2022, the 2eur (EURe) pool on Curve on Polygon generated a volume volume of $2M while beingincentivized between September and November 2022, with a TVL that went up to $700k.
Specifications:
- Governance:
· Jarvis: no on-chain governance (vote via snapshot) and decisions are executed through a ⅝ multi-sig (only one team member in the signers).
o Polygon: daopol
o Ethereum: 0x2CA74be68f0A0e053F030D143C1376806BaBEdc9
o Gnosis Chain: 0xaE1026699f47B1fC572D65E1784b12c3A2574A25
o BSC: daobnb
o Avalanche: 0x2507A0d8E2aBe9464Ba2d9ddcA38A5ee5e60A434
o Optimism: daoop
· Monerium has no on-chain governance.
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Oracles: jEUR uses EURUSD and computed ETHUSD (ETHUSD / EURUSD) Chainlink price feed; (Gnosis chain address details for 0xab70BCB260073d036d1660201e9d5405F5829b7a | Blockscout) Chainlink price feed.
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Audits:
· Jarvis: Audits - Jarvis Network - Synthereum
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Centralizing vector: jEUR is collateralized by WXDAI, lent on the RMM of RealT; Monerium is backed by Euros.
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Market history: jEUR has been live since August 2021 (on Polygon); apart from Polygon where we had the issue I mentioned, it has never traded off its peg on the chains where. EURe has been live since May 2022 (on Polygon); as Monerium can be minted/redeemed against Euros, it has held its peg even though its low liquidity creates stability issue time to time (always arbed).
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Value:
· The 2eur (EURe) pool will act as the main route on and off-ramp on Polygon for European users, and main route for arbitrages and the use cases mentioned above (on-chain liquidity, yield without FX risks, etc.).
Contracts
· 2eur (EURe) Balancer Pool (Gnosis Chain): 0xC66936a47E6D40DD050A8419B4352825D9082241 (trading fees 0.05%).
· jEUR token (Gnosis): 0x9fB1d52596c44603198fB0aee434fac3a679f702
· jEUR (Gnosis Chain Reserve): 0xA10a84f40e9114D7E928744494762103F089fe70
· EURe token (Gnosis Chain): 0xcB444e90D8198415266c6a2724b7900fb12FC56E
· Child Gauge: 0xe8672E6d593D5D2769266919abB6dAd7b9687608
Mainnet Root Gauge: GnosisRootGauge | Address 0x0Ad055942640eAF282179d89EB2F3D59136959C7 | Etherscan
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): 0x0Ad055942640eAF282179d89EB2F3D59136959C7
gaugeType(string): Gnosis