# \[BIP-833\] USP/aUSDC Gauge proposal **URL:** \ **Category:** BAL Gauges\ **Created:** [May 21, 2025, 9:13am UTC](https://forum.balancer.fi/t/bip-833-usp-ausdc-gauge-proposal/6538 "2025-05-21T09:13:09Z")\ **Posts on this page:** 3\ **Page:** 1
**Author:** ![Biaf](https://yyz1.discourse-cdn.com/flex027/user_avatar/forum.balancer.fi/biaf/32/3038_2.png) [@Biaf](https://forum.balancer.fi/u/Biaf)\ **Post date:** [May 21, 2025, 9:13am UTC](https://forum.balancer.fi/t/bip-833-usp-ausdc-gauge-proposal/6538/1 "2025-05-21T09:13:09Z")
### PR with Payload > > > \- \[Proposal\](https://forum.balancer.fi/t/bip-xxx-usp-ausdc-gauge-proposal/6538) ### Summary A proposal to add gauge support for the new Pareto USP-aUSDC Composable Stable pool on Balancer v3 on Ethereum. ### References/Useful links: - Website: [pareto.credit](https://pareto.credit/) - Documentation: [docs.pareto.credit](https://docs.pareto.credit/) - GitHub page: [github.com/pareto-credit/USP](https://github.com/pareto-credit/USP), [github.com/pareto-credit](https://github.com/pareto-credit), [github.com/Idle-Labs](https://github.com/Idle-Labs) - Governance: [gov.pareto.credit](https://gov.pareto.credit/) ## Protocol Description USP is a synthetic dollar protocol backed by real-world institutional-grade private credit, alongside a globally accessible savings asset, sUSP. Users can mint USP (ERC-20) by depositing stablecoins, e.g. USDC, USDS, into the ParetoDollar contract. The deposited assets are deployed into Credit Vaults, which lend funds to institutional players executing yield-generating strategies. The resulting yield is distributed to USP stakers (sUSP) via the ParetoDollarStaking contract. USP offers the following benefits: - **Composable** : USP is a transferable, permissionless asset that integrates across DeFi and CeFi, streamlining capital deployment, risk management, and settlements - **Capital efficient** : Minted 1:1 against major stablecoins, USP is deployed into a diversified portfolio of liquid, short- and long-term credit, balancing liquidity and yield - **Protected** : USP holds senior priority in the capital stack and will be additionally shielded by a peg stability reserve to provide a buffer against defaults and market stress For more details, refer to the [Pareto’s USP docs](https://docs.pareto.credit/product/usp). ## Motivation The USP-aUSDC Boosted Pool on Balancer is intended to become the core liquidity hub for USP on Ethereum. Gauge activation would allow the protocol to: - Increase Liquidity: Incentivize deeper stablecoin liquidity to support efficient swaps. - Enhance Capital Efficiency: Leverage the boosted pool structure to maximize utilization while minimizing slippage. Pareto will incentivize liquidity provision and swap activity through a dedicated points multiplier for the USP-aUSDC pool as part of [Season 2 of its Efficiency Campaign](https://paragraph.com/@pareto/efficiency-campaign-season2). ## Specifications 1. **Governance** : Pareto team retains admin control (with a 1-day timelock for upgrades) on USP core functions with the plan to decentralize the token governance by establishing a board responsible for risk management, fund allocation, and other key operational activities. 2. **Oracles** : USP does not rely on any oracle. The token is minted 1:1 to its underlying asset, USDC.Preformatted text 3. **Audits** : USP’s smart contracts have undergone multiple audits to ensure security and reliability. Audit reports are available in [Pareto’s docs](https://docs.pareto.credit/developers/security/audits). 4. **Centralization vectors** : Currently, there is no governance. After PAR TGE, a DAO will be established. 5. **Market History** : USP has been recently launched and did not face any depeg event. The pool address is [0x114907c2a07978c38ebb9f9f6a5261a846b79521](https://balancer.fi/pools/ethereum/v3/0x114907c2a07978c38ebb9f9f6a5261a846b79521). The Gauge address is [0xA67fBb1E751E0C6ECd9a213c960A11fd4b3B691D](https://etherscan.io/address/0xA67fBb1E751E0C6ECd9a213c960A11fd4b3B691D) ![image](https://canada1.discourse-cdn.com/flex027/uploads/balancer/original/2X/1/1fc46b73da22400718c50e2c339a0c0f5c5c6c7f.png) 1. **Value** : The Balancer’s USP-aUSDC pool is intended to become the primary liquidity hub for the token on Ethereum. ### Technical Specification The Balancer Maxi LM Multisig `0xc38c5f97B34E175FFd35407fc91a937300E33860` will interact with the GaugeAdderv4 at `0x5DbAd78818D4c8958EfF2d5b95b28385A22113Cd` and call the addGauge function with the following arguments: gauge(address):`0xA67fBb1E751E0C6ECd9a213c960A11fd4b3B691D` gaugeType(string): `Ethereum` ---
**Author:** ![Xeonus](https://yyz1.discourse-cdn.com/flex027/user_avatar/forum.balancer.fi/xeonus/32/3621_2.png) [@Xeonus](https://forum.balancer.fi/u/Xeonus)\ **Post date:** [May 21, 2025, 12:48pm UTC](https://forum.balancer.fi/t/bip-833-usp-ausdc-gauge-proposal/6538/2 "2025-05-21T12:48:14Z")
Edit Maxis: - add technical specification - assign BIP ID - add payload ---
**Author:** ![Xeonus](https://yyz1.discourse-cdn.com/flex027/user_avatar/forum.balancer.fi/xeonus/32/3621_2.png) [@Xeonus](https://forum.balancer.fi/u/Xeonus)\ **Post date:** [May 22, 2025, 7:28am UTC](https://forum.balancer.fi/t/bip-833-usp-ausdc-gauge-proposal/6538/3 "2025-05-22T07:28:23Z")
[https://snapshot.box/#/s:balancer.eth/proposal/0xa7a4ceca42de67064c9f35e0e1869f2a2bd590107f1031b82cf8aef57700efaa](https://snapshot.box/#/s:balancer.eth/proposal/0xa7a4ceca42de67064c9f35e0e1869f2a2bd590107f1031b82cf8aef57700efaa)