[BIP-?] Enable TRYB / bb-a-USD Gauge with a 2% Emission Cap [Ethereum]

Proposal to add TRYB / bb-a-USD to Gauge Controller:

This proposal is submitted by the BiLira Team.

Summary:

This is a proposal to enable a Balancer gauge for the TRYB / bb-a-USD Pool. This pool consists of 50% bb-a-USD - Balancer’s AAVE boosted stable pool token, and 50% TRYB(BiLira), a Turkish Lira backed and 1:1 collateralized ERC-20 compatible stablecoin. The gauge will be with a 2% emission cap.

Pairing TRYB with an AAVE boosted stablepool token (bb-a-USD) is expected to result in greater efficiency due to increased depth of liquidity in this particular pool compared to individual pairings such as USDC alone. Furthermore, there are several benefits associated with enabling a gauge for TRYB/bb-a-USD pool:

  • Increased Liquidity: Turkish traders will have access to deeper liquidity than before which should lead to lower spreads between buy/sell prices resulting in an improved trading performance
  • Greater Accessibility: By including TRYB in the Balancer Protocol alongside other popular currencies like USDT and USDC, traders around the world, including Turkish traders, will have greater access to invest and manage their funds digitally through a well-respected decentralized finance protocol like Balancer.
  • Yields and Transaction Fees: While Turkish investors will be able to enjoy the benefits of utilizing Balancer in the most accessible manner; at the same time, Balancer will earn additional yields from fees collected from trading activities within the platform.

References/Useful links:

Link to:
Website
Audit Reports
Issuance & Redemption
Documentation
Twitter
• Contracts: Ethereum, Avalanche, Polygon, Solana, BNB

Protocol Description:

The BiLira (TRYB) token is a full-reserve stable cryptocurrency that is built on 5 different blockchains, issued and managed by the BiLira organization, backed by the Turkish Lira and collateralized 1 : 1, secure and compatible with ERC-20 token standards. Users can use the web application on BiLira.co to conduct TRYB issuances and redemptions between their local banks and their digital wallets.

The minting of on-chain TRYB is from fully collateralized bank deposits. Users connect their wallets and deposit fiat currency (TRY) into BiLira’s bank account. BiLira confirms the transaction and verifies the smart contract. The smart contract then mints corresponding TRYB tokens and sends them to the customer’s crypto wallet. Corresponding fiat currency is held in BiLira’s reserves. This information can be verified through our audit reports that are done via 3 party firms.(link to the reports can be found below). Another factor is that BiLira doesn’t hold the users crypto assets. The issuance process is non-custodial and the assets are sent to the users wallet addresses that they provide. For redemption, users send their TRYB to their BiLira redemption wallets, and convert the specified TRYB to Turkish Lira through bilira.co. All of the redeemed TRYB from customers are burned in a monthly routine. BiLira firm uses enterprise-grade multi-layer security measures such as Multi-Sig wallets through Fireblocks.

Motivation:

Cryptocurrency adoption in Turkey is one of the highest in the world and continues to grow as a result of the increasing demand for digital assets and financial services. A survey by ING illustrates that almost 18% of Turkish people have used or owned cryptocurrency in some form, compared to 9% across the European Union. This has been driven by the high inflation rate and economic uncertainty that has been experienced in Turkey over the last few years. The Turkish Lira (TRY) has been especially severely impacted, with its value dropping by over 40% since the beginning of 2020. As a result, Turkish users actively seek for alternative financial instruments and solutions.
By creating the TRYB/bb-a-USD pool, we wanted to open the gates of Balancer to the Turkish DeFi users.

With such a large base of crypto users, TRYB pools on Balancer would provide Turkish users with easy access to the decentralized finance ecosystem and make it easier for them to adopt and trade crypto assets. Besides, all TRYB holders can benefit from low transaction fees as well as faster swaps and many incentives such as the newly added Aave boosted USD pools to hold their assets in the ecosystem when handling their finances through Balancer.

Furthermore, by incentivizing TRYB on Balancer there will be an incentive for users to provide liquidity and actively swap tokens. This will consequently result in more users joining the platform, increased trading volumes and the pool established for TRYB on Balancer will also help increase awareness of BiLira’s token and its utility as a stablecoin pegged 1:1 with the Turkish Lira. Providing this type of service could draw in new Turkish traders who may not have previously considered investing in cryptocurrencies or utilizing decentralized platforms. For instance, as more people begin using TRYB tokens for their transactions or contribute to the relevant liquidity pool, traders will have more opportunities to arbitrage between different exchanges and earn profits from price discrepancies across markets. As a matter of fact, incentivizing TRYB on Balancer will also create new opportunities for institutional investors who are looking for ways to diversify their portfolio with digital assets.

Specifications:
You may find the full details on the project in the BiLira whitepaper and for all the other information please refer to BiLira homepage.

  1. Governance:
    TRYB is centralized and issued by BiLira and does not have a governance forum.

  2. Oracles:
    TRYB has a Chainlink oracle that can be found here: Oracle

  3. Audits:
    BiLira’s TRYB is being audited twice a year by an independent auditor to ensure all TRYB’s are fully backed by TRY. See the latest audits here.

  4. Centralization vectors:
    TRYB is inherently centralized and issued by BiLira. Users who complete the KYC/AML process are allowed to issue and redeem TRYB for TRY 24/7.

  5. Market History:
    TRYB has been on blockchains since early 2019. It has been listed and used on numerous DEXs and CEXs since its launch. Until today more than 5 billion TRYB has been issued by BiLira to fulfill the user demand. See Coingecko history here.
    From August 2020 and up until 31 October 2022, TRYB was within +/-1% of the peg 93.14% of the time and within +/-2% 98.90% of the time.
    There are some market places where there is lack of liquidity which does not make a sufficient impact on the peg. Outliers on the TRYB/TRY peg distribution rarely occur on these marketplaces with relatively less volume. However, TRYB peg is guaranteed with the TRY held in the bank account of BiLira. Users can always redeem TRYB for TRY(1:1) via this link.

Pool: TRYB/bb-a-USD
Gauge w/ 2% emission: Gauge Link

  1. Value:
    As explained above, the Turkish community will benefit from providing liquidity to Balancer. As the USD side is boosted in itself, many people will be interested in moving over to Balancer. We will also be actively participating in the ecosystem.

hey, thanks for the proposal and to me all looks good. Only thing is we will very soon begin migrating bbaUSD over to Aave v3. The new pool will be made either this week or next. If you could wait for that then remake this using the new bbaUSD that would be greatly appreciated.

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Updated Proposal Link: