[BIP-704] Enable MORE/GYD gauge [Arbitrum]

BAL Gauges
1

PR with Payload

Summary

This is a proposal to enable a veBAL gauge for the MORE/GYD E-CLP pool on Arbitrum, created in partnership with Gyroscope. By introducing this gauge, we aim to incentivize liquidity provision and enhance trading activity for the MORE stablecoin on Arbitrum. This pool will serve as the primary liquidity source for MORE on Arbitrum and will utilize Gyroscope’s innovative E-CLP technology.

References / Useful Links

Protocol Description

  • MORE is a collateral-backed stablecoin pegged to the US dollar, issued by Stack Finance.
  • GYD is a USD denominated stablecoin, issued by [Gyroscope] https://gyro.finance/

Stack Finance is a Collateralized Debt Position (CDP) protocol on the re.al L2 network, specializing in leveraging crypto-native and real-world asset (RWA) tokens. Users can deposit a variety of assets as collateral to borrow the stablecoin MORE. Advanced leverage features allow users to loop borrowed MORE to acquire additional collateral, making it highly effective when using yield-bearing tokens. Stack Finance is uniquely positioned to cater specifically to tokenized RWAs as the re.al blockchain is meant to be a liquidity hub for RWA DeFi.

MORE is designed to maintain a $1 peg through collateral backing that exceeds $1 for every $1 of MORE issued. While Stack Finance considers MORE to be worth $1, the price may occasionally deviate. To stabilize the peg, the protocol employs mechanisms like interest rate adjustments and arbitrage opportunities, encouraging users to act in ways that restore the peg.

Motivation

Enabling a gauge for the MORE/USDC E-CLP pool on Arbitrum aligns with Stack Finance’s strategy to expand MORE’s liquidity across multiple chain ecosystems. This initiative aims to boost liquidity by attracting more liquidity providers, enhance the trading experience through improved price stability and reduced slippage, which will help Stack Finance to strengthen its DeFi integrations.

Specifications

  • Governance: Stack Finance’s governance is currently managed through a team-controlled multi-signature wallet. The protocol plans to transition to a decentralized governance model in the future, once the system achieves greater stability and market resilience.
  • Oracles: There are currently no oracles for MORE on Arbitrum. The protocol does not rely on external oracles for its core functionalities on this network.
  • Audits: Prior to deployment, Stack Finance underwent two comprehensive audit rounds to ensure the security and reliability of the protocol. The first was a private audit conducted by Omniscia, and the second audit was a public one performed by WatchPug. The detailed report from WatchPug’s audit can be viewed here.
  • Centralization Vectors: Currently, Stack Finance has centralization vectors primarily associated with upgradeability and governance control. The protocol’s smart contracts are upgradeable via a multi-signature wallet controlled by the team. Additionally, until the protocol transitions to a decentralized governance model, the team retains control over protocol parameters and decision-making processes.
  • Market History: Since its launch in June 2024 on the re.al L2, Stack Finance has accumulated over $2M in TVL. The MORE stablecoin has consistently maintained its $1 peg, experiencing a maximum deviation of 2%, which was swiftly corrected as per protocol designed mechanisms. Stack Finance has deployed MORE liquidity pools across multiple ecosystems, including a MORE/USDT pool on ThenaFi on the BNB Chain, a MORE/USDC pool on Tokan on Scroll, and a MORE/USTB pool on PearlFi on re.al.
  • Value: The MORE/GYD E-CLP pool is intended to be the primary source of liquidity for MORE on Arbitrum. Enabling the gauge will incentivize liquidity providers by offering veBAL rewards and additional bribes from Stack Finance, thereby attracting more participants and increasing the pool’s depth. This will generate consistent fees through heightened trading activity, benefiting the Balancer ecosystem as a consequence.

Specification

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): 0x2400b9BAfb56Ec6D9eCeE50aF463A155Cf46db98
gaugeType(string): Arbitrum

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https://snapshot.org/#/balancer.eth/proposal/0x818fb7d68c87ee3671976469411ef1709ffef518e0e7ecd6bc6db4228e19fa9d