[BIP-876] Enable Gauge for USDp/USDC Stable Pool with a 2% cap (Base)

BAL Gauges
1

PR with Payload

Summary:

Enable a Balancer gauge for the USDp/USDC (USDp-USDC) StableSurge pool with a 2% cap on Base.

USDp is fully backed by a basket of correlated assets and issued by the Parallel Protocol.

USDC is fully backed by cash & cash-equivalent assets and issued by Circle.

The pool is a StableSurge pool. StableSurge pools are a type of stable pool designed for assets that usually trade at nearly the same value or have a predictable exchange rate. What makes StableSurge pools different is that they use a special feature, called a hook, to automatically adjust the swap fee based on how balanced the pool is during a trade.

References/Useful links:

Parallel Protocol:

Circle:

Protocol Description:

Parallel Protocol

Parallel is a scalable, modular, over-collateralized & decentralized stablecoin protocol issuing USDp, a crypto-redeemable stablecoin backed by yield generating correlated assets, with cross-chain support via LayerZero.

The protocol consists of a decentralized price-stability module where you mint/burn USDp at oracle price (not 1:1) against correlated assets without any cooldown. Generated yield by backing of the stablecoin is distributed to stablecoin stakers.

Currently a USD stablecoin, called USDp is deployed across 16 chains:

  • USDp: Parallel USD Stablecoin

  • sUSDp: Staked USDp (4626), receive yield from the stablecoin backing

Motivation:

The role of the USDp/USDC StableSurge pool is to increase the on-chain liquidity of USDp, and connect the Parallel and Circle ecosystems.

The capital efficiency of StableSurge pools will help to quickly bootstrap a liquidity network for USDp against USDC.

By using StableSurge a comparably small amount of initial capital can provide a disproportionately deep market for USDp against USDC.

A few notes:

  • Mimo Labs, a contributor of the Parallel Protocol built positions in AURA (1M vlAURA), used to vote for Parallel pools.

  • The Parallel Protocol treasury currently holds ±90k vlAURA, used to vote for Parallel pools.

  • The Parallel Protocol Insurance Fund holds ±1.3M AURA, used to vote for Parallel pools.

  • Parallel has been using Balancer since June 2021 for Parallel assets.

Specifications:

  1. Governance:

  • Parallel Protocol: none on-chain governance (vote via snapshot) and decisions are executed through a ⅝ multi-sig (elected by sPRL holders).

  • Circle: USDC is a centralized entirely controlled by Circle.

  1. Oracles:

  • Parallel rely on Chainlink & Redstone price feeds for mint & burn.

  • Circle doesn’t rely on oracles for mint & burn.

  1. Audits:
  1. Assets & Centralizing vector:

  • Parallel: The DAO Multisig can upgrade all USDp related contracts. Part of the backing of USDp may be centralized assets, which is not the case right now.

  • Circle:

  1. Market history:

  • USDp has been live since August 2025 on Base; USDp is pegged to USD.

  • USDC has been live since August 2023 on Base; USDC is pegged to USD.

  1. Value:
  • The USDp/USDC stable pool will act as the main route for arbitrages and the use cases mentioned above (on-chain liquidity, etc.).

Contracts

Technical Specifications

The Balancer Maxi Omni-Sig 0x9ff471F9f98F42E5151C7855fD1b5aa906b1AF7e will interact with the GaugeAdderv4 at 0x5DbAd78818D4c8958EfF2d5b95b28385A22113Cd and call the addGauge function with the following arguments:
gauge(address):0xc9fffc7d9810d2a3deee7de70e2fb41781a5d779
gaugeType(string): Base

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Edit by Maxis:

  • assign BIP ID
  • add payload
3

https://snapshot.box/#/s:balancer.eth/proposal/0xf3215010ab1f7fa49573e05fd4d10f780cb96994b63d32b370f48b2423cfee7d

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