PR with Payload
[BIP-116] Enable TETU/USDC 80/20 Gauge w/2% emissions cap (Polygon)
Summary
This proposal requests to increase the gauge cap for the TETU / USDC 80/20 pool from 2% to 5%.
The goal is to better reflect the pool’s maturity, sustained on-chain usage, and its role as the primary liquidity venue for the TETU token paired with a major stablecoin.
Background and Motivation
The TETU / USDC 80/20 pool is the canonical liquidity market for TETU, combining high protocol token exposure with a deep, highly liquid stable asset (USDC).
1. Core Liquidity Venue for TETU
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This pool represents the main price discovery and liquidity source for TETU.
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An 80/20 structure maximizes capital efficiency while preserving meaningful USDC depth.
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Increasing the gauge cap supports tighter spreads and improved trade execution.
2. Stablecoin Pairing & Risk Profile
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Pairing TETU with USDC significantly reduces volatility compared to volatile-volatile pairs.
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This improves:
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LP risk-adjusted returns
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Attractiveness for conservative liquidity providers
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Overall pool stickiness during market stress
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3. Emission Efficiency & Ecosystem Fit
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Higher gauge cap does not force emissions, but:
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Removes a hard ceiling
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Lets veBAL voters allocate emissions where demand naturally exists
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This aligns emissions with real usage instead of arbitrary limits.
4. Long-Term Liquidity Sustainability
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Deeper liquidity:
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Improves user confidence
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Supports integrations and routing
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Reduces dependency on short-term incentive spikes
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A higher cap allows the pool to scale alongside ecosystem growth.
5. Fixed Supply & Full Community Ownership
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TETU has a fixed supply, and token emissions have fully ended.
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100% of the circulating supply is already in the hands of the community — there are no future minting schedules, inflation mechanisms, or protocol-controlled token releases.
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As a result:
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Gauge incentives do not subsidize inflation, but instead reward organic liquidity provision.
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BAL emissions allocated to this pool support a fully circulating, market-driven asset, rather than compensating for ongoing dilution.
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This makes the TETU / USDC 80/20 pool structurally aligned with long-term sustainability and governance-driven incentive allocation.
Specification
If approved, this proposal will execute an on-chain transaction updating the gauge parameters as follows:
WeightedPool: 0xE2f706EF1f7240b803AAe877C9C762644bb808d8
Child Chain Liquidity Streamer: 0xeBEa61d761233b0f1733623FaafBd385eb5b00D7
Polygon Root Gauge w/2% cap: 0x1E0C21296bF29EE2d56e0abBDfbBEdF2530A7c9A
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Current cap: 2%
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Proposed cap: 5%
Conclusion
The TETU / USDC 80/20 pool is a mature, stable, and strategically important liquidity venue.
Raising its gauge cap to 5% enables emissions to better reflect real demand and long-term ecosystem value, while leaving full control in the hands of veBAL governance.