[BIP-880] Enable Gauge for USDp/mevUSDC Stable Pool with a 2% cap (Avalanche)

BAL Gauges
1

PR with payload

Summary:

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

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

mevUSDC is a Silo Vault curated by MEV Capital.

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:

Silo:

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

Silo

The Silo Protocol is a non-custodial lending primitive that creates programmable risk-isolated markets known as silos. Any user with a wallet can lend or borrow in a silo in a non-custodial manner. Silo markets use the peer-to-pool, overcollateralized model, where the value of a borrower’s collateral always exceeds the value of their loan. Silo is currently live on Ethereum, Sonic, Arbitrum, and Avalanche.

Motivation:

The role of the USDp/mevUSDC StableSurge pool is to increase the secondary market on-chain liquidity of USDp, while connecting the Parallel, Silo & MEV Capital ecosystems.

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

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

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 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) and decisions are executed through a ⅝ multi-sig (elected by sPRL holders).

  • Silo & MEV Capital: mevUSDC is governed by ⅔ multisig.

  1. Oracles:

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

  • Silo mevUSDC vault doesn’t rely on oracles since it is an erc4626 vault.

  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..

  • Silo & MEV Capital: The Silo vault is libelled in USDC, a centralizer stablecoin developed by Circle. Circle has the ability to freeze USDC.

  1. Market history:

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

  • mevUSDC has been live since June 2025 on Avalanche.

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

Contracts

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):0x1f0ee42d005b89814a01f050416b28c3142ac900
gaugeType(string): Avalanche

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Edit by MAXYZ:

  • add payload

  • add technical specification

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https://snapshot.box/#/s:balancer.eth/proposal/0xeb5fd1093eadbc52ffcf82e4e879f6c9ee3de70ff9922f8f0d8087f7bef2e298

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