# \[BIP-878\] Enable Gauge for USDp/frxUSD Stable Pool with a 2% cap (Base) **URL:** \ **Category:** BAL Gauges\ **Created:** [October 2, 2025, 12:30am UTC](https://forum.balancer.fi/t/bip-878-enable-gauge-for-usdp-frxusd-stable-pool-with-a-2-cap-base/6845 "2025-10-02T00:30:45Z")\ **Posts on this page:** 3\ **Page:** 1
**Author:** ![JeanBrasse](https://yyz1.discourse-cdn.com/flex027/user_avatar/forum.balancer.fi/jeanbrasse/32/2069_2.png) [@JeanBrasse](https://forum.balancer.fi/u/JeanBrasse)\ **Post date:** [October 2, 2025, 12:30am UTC](https://forum.balancer.fi/t/bip-878-enable-gauge-for-usdp-frxusd-stable-pool-with-a-2-cap-base/6845/1 "2025-10-02T00:30:46Z")
### PR with Payload > > > \- \[Proposal\](https://forum.balancer.fi/t/bip-878-enable-gauge-for-usdp-frxusd-st…able-pool-with-a-2-cap-base/6845) # **Summary:** Enable a Balancer gauge for the USDp/frxUSD (USDp-frxUSD) StableSurge pool with a 2% cap on Base. USDp is fully backed by a basket of correlated assets and issued by the Parallel Protocol. frxUSD is backed by a hybrid model that allows for governance-approved enshrined custodians to mint/redeem the stablecoin by holding cash-equivalent reserves while also having onchain mechanisms. 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:** - Website: [https://parallel.best/](https://parallel.best/) - Documentation: [https://docs.parallel.best/](https://docs.parallel.best/) - Code: [https://github.com/parallel-protocol](https://github.com/parallel-protocol) - X: [https://twitter.com/ParallelMoney](https://twitter.com/ParallelMoney) - Audits: [https://docs.parallel.best/resources/security-audits](https://docs.parallel.best/resources/security-audits) ## **Frax:** - Website: [https://frax.com/](https://frax.com/) - Documentation: [https://docs.frax.com/protocol](https://docs.frax.com/protocol) - Code: [https://github.com/FraxFinance](https://github.com/FraxFinance) - X: [https://x.com/Frax](https://x.com/Frax) - Audits: [https://docs.frax.com/protocol/security/audit](https://docs.frax.com/protocol/security/audit) # **Protocol Description:** ## **Parallel** 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 ## **Frax** Frax Finance is a unified DeFi ecosystem issuing three “stable” assets—frxUSD (USD-pegged), FPI (CPI-indexed unit of account), and frxETH (ETH-pegged LSD with a yield-accruing sfrxETH). frxUSD is a fully backed digital dollar, redeemable 1:1 and collateralized by tokenized U.S. Treasury funds (e.g., BlackRock BUIDL, Superstate USTB, WisdomTree WTGXX) and onchain tokens (e.g. sUSDe) # **Motivation:** The role of the USDp/frxUSD StableSurge pool is to increase the on-chain liquidity of USDp & frxUSD, while connecting the Parallel and Frax ecosystems. The capital efficiency of StableSurge pools will help to quickly bootstrap a liquidity network for USDp & frxUSD. By using StableSurge a comparably small amount of initial capital can provide a disproportionately deep market for USDp & frxUSD. #### **A few notes:** - Frax will incentivize the pool by depositing voting incentives the pool with $1k per week. - Mimo Labs, a contributor of the Parallel Protocol built [positions](https://debank.com/profile/0x4a266739E40664e80470CC335120a2A1fA0B3F3f) in AURA (1M vlAURA), used to vote for Parallel pools. - The Parallel Protocol [treasury](https://pro.octav.fi/parallelprotocol/treasury) currently holds ±90k vlAURA, used to vote for Parallel pools. - The Parallel 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:** none on-chain governance (vote via [snapshot](https://vote.parallel.best/#/)) and decisions are executed through a ⅝ multi-sig ([elected](https://docs.parallel.best/governance/dao-multisigs) by sPRL holders). - **Frax:** Protocol changes and key actions flow through veFRAX governance + gnosis safes. 1. Oracles: - **Parallel** rely on Chainlink & Redstone price feeds for mint & burn. - **Frax** supply is minted/burned 1:1 by “enshrined custodians” holding cash-equivalent reserve tokens (e.g., BUIDL, USTB); issuance is tied to those reserves via the frxUSDCustodian contracts, not a price oracle. 1. Audits: - **Parallel** : [https://docs.parallel.best/resources/security-audits](https://docs.parallel.best/resources/security-audits) - **Frax:** [https://docs.frax.com/protocol/security/audit](https://docs.frax.com/protocol/security/audit) 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. - **Frax:** frxUSD relies on enshrined custodians (tokenized T-bill funds) for 1:1 mint/burn, reserve-layer whitelists and custodian operations are key trust/centralization points. 1. Market history: - **USDp** has been live since August 2025 on Base; USDp is pegged to USD. - **frxUSD** has been live since February 2025 on Base; frxUSD is pegged to USD. 1. Value: - The USDp/frxUSD stable pool will act as the main route for arbitrages and the use cases mentioned above (on-chain liquidity, etc.). # **Contracts** - Balancer Pool (Base): [0x39677db4db990af7bc3fcfb66704de7473aa19bd](https://basescan.org/address/0x39677db4db990af7bc3fcfb66704de7473aa19bd#code) - USDp Token (Base): [0x76a9a0062ec6712b99b4f63bd2b4270185759dd5](https://basescan.org/token/0x76a9a0062ec6712b99b4f63bd2b4270185759dd5) - frxUSD Token (Base): [0xe5020a6d073a794b6e7f05678707de47986fb0b6](https://basescan.org/address/0xe5020a6d073a794b6e7f05678707de47986fb0b6#code) - Gauge (child): [0xdce4bc2e445776a4cfa93bddc20b0e9d6aaf752d](https://basescan.org/address/0xdce4bc2e445776a4cfa93bddc20b0e9d6aaf752d#code) - Gauge (root): [0x533382463506f3b513ebbe9f2be7fbb49ccaef25](https://etherscan.io/address/0x533382463506f3b513ebbe9f2be7fbb49ccaef25#code) ### Technical Specification The Balancer Maxi Omni-Sig `0x9ff471F9f98F42E5151C7855fD1b5aa906b1AF7e` will interact with the GaugeAdderv4 at `0x5DbAd78818D4c8958EfF2d5b95b28385A22113Cd` and call the addGauge function with the following arguments: gauge(address):`0x533382463506f3b513ebbe9f2be7fbb49ccaef25` gaugeType(string): `Base` ---
**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:** [October 2, 2025, 7:04am UTC](https://forum.balancer.fi/t/bip-878-enable-gauge-for-usdp-frxusd-stable-pool-with-a-2-cap-base/6845/2 "2025-10-02T07:04:11Z")
Edit by Maxis: - add payload - add technical specification ---
**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:** [October 2, 2025, 1:36pm UTC](https://forum.balancer.fi/t/bip-878-enable-gauge-for-usdp-frxusd-stable-pool-with-a-2-cap-base/6845/3 "2025-10-02T13:36:54Z")
[https://snapshot.box/#/s:balancer.eth/proposal/0x75c4ab3d93950a86e73e9507a817865074e83b4d1e115ed5a0a0180bd3157e15](https://snapshot.box/#/s:balancer.eth/proposal/0x75c4ab3d93950a86e73e9507a817865074e83b4d1e115ed5a0a0180bd3157e15)