[BIP-830] Enable Aave Boosted USDN/aGHO Gauge on Balancer v3 Ethereum

BAL Gauges
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PR with Payload

Summary

Proposal to add gauge support for the new USDN/aGHO Composable Stable pool on Balancer v3 for Ethereum.

References/Useful Links

Protocol Description

SmarDex introduces USDN, a fully decentralized synthetic dollar designed to maintain a stable value around $1 while providing yield to its holders. Unlike traditional stablecoins backed by centralized reserves, USDN employs a delta-neutral strategy through a structured product mechanism. This approach balances long and short positions within the protocol to stabilize USDN’s value and generate returns for participants.

Key features of USDN include:

  • Decentralization: Operates entirely on-chain without reliance on centralized entities.
  • Yield Generation: Utilizes a rebase mechanism to distribute yields directly to holders’ wallets.
  • Delta-Neutral Strategy: Maintains stability by balancing leveraged long positions against the vault’s holdings.
  • No Custodial Risk: Users interact directly with smart contracts, eliminating the need for intermediaries.

For more details, refer to the SmarDex Documentation.

Motivation

Integrating USDN with aGHO in a Balancer v3 Composable Stable pool offers several advantages:

  • Enhanced Capital Efficiency: aGHO, being GHO deposited into Aave’s Prime instance, accrues native yield, reducing the need for additional incentives.
  • Strengthened Liquidity: Establishes a primary liquidity venue for USDN, promoting seamless integrations with DeFi protocols utilizing aGHO.

A gauge is essential to bootstrap TVL, encourage liquidity depth, and support broader integrations across DeFi for USDN.

Specifications

1. Governance

SmarDex uses “Privileged functions” which allow Multisigs to have an overview about all important functions of the protocol.

2. Oracles

The USDN protocol relies on a dual-oracle system, utilizing both Pyth and Chainlink, to obtain accurate price feeds. This redundancy ensures resilience against potential oracle failures and maintains the integrity of the protocol’s operations.

3. Audits

SmarDex’s smart contracts have undergone multiple audits to ensure security and reliability. Audit reports are available in the SmarDex Documentation.

4. Centralization Vectors

There is no governance; the team manages all operations. Some contracts are renounced, while others are controlled by a 3/5 multisig

5. Market History

As a new Balancer v3 pool, the USDN/aGHO pair aims to establish itself as a significant liquidity venue for USDN. The integration with Aave’s aGHO token is expected to enhance liquidity and efficiency.

6. Value

The USDN/aGHO pool will become the primary liquidity hub for USDN, facilitating seamless integrations with DeFi protocols that utilize GHO. Establishing deep liquidity in this pool is critical for efficient swaps and expanding USDN’s utility across the Ethereum ecosystem. With GHO being the cornerstone asset for swap in Balancer v3 it will ensure efficient swap throughout the DEX.

Specification

Enable Gauges

The Balancer Maxi LM Multisig 0xc38c5f97B34E175FFd35407fc91a937300E33860 will interact with the GaugeAdderv4 at 0x5DbAd78818D4c8958EfF2d5b95b28385A22113Cd and call the addGauge function with the following arguments:

  • Pool address: 0x950682e741abd1498347a93b942463af4ec7132b
  • Gauge: 0x9798995a042973d9705a4f0fea691a4541d13b43
  • GaugeType(string): Ethereum
1 Like
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Edit by Maxis:

  • Assign BIP ID
  • added payload
3

https://snapshot.box/#/s:balancer.eth/proposal/0x51fb3038446d691aee6b8330290418f3da452f7188bef83ffc9f94067460aa57