[BIP-XXX] Enable USX/USDC gauge on Arbitrum and Polygon

BAL Gauges
1

Summary

It’s proposed to add gauge support for the stable pool USX/USDC on Arbitrum and Polygon.

Reference/Useful Links

Protocol Description

dForce is a complete set of DeFi protocols covering assets, lending, and trading, serving as DeFi infrastructure in Web3. dForce is backed by a world-class investor consortium including Multicoin Capital, CMBI and Huobi Capital.

As of December 2022, dForce has recorded more than $5b volume in accumulated borrowing with zero vulnerability exploits and unexpected losses for more than 2 years, and is currently deployed on Ethereum, Arbitrum, Optimism, BSC, Polygon, Avalanche, and KAVA.

USX is a decentralized and fully-collateralized stablecoin implementing multiple minting modules including global-pool (multi-sided lending), vault (customized pool), and LSR (Liquidity Stability Reserve).

USX’s dollar peg is mainly dictated by a hybrid interest policy that can efficiently improve USX’s liquidity on the open market by adjusting its lending and borrowing rates on supported protocols.

Powered by the LSR module, users can mint (or redeem) USX at 1:1 rate with a number of supported stablecoins directly on multiple blockchains.

Motivation

dForce’s multi-chain strategy aims to build a more-resilient DeFi ecosystem by tapping into different blockchains and helping our users capture the best from all worlds.

USX can be minted natively on all deployed blockchains and moved across with zero slippage. Stacked with swap and lending, users can move any crypto asset across different blockchains with zero slippage and uncapped limit, with USX functioning as the cross-chain liquidity conduit.

It’s proposed to enable the USX/USDC gauge so that volume will be captured by Balancer when users execute trades on dForce Trade (DEX aggregator).

Specification

1. Governance

dForce DAO is a community-driven project, with major protocol changes driven by the community and jointly decided by dForce token (DF) holders through governance voting via Snapshot. Community members can participate in all governance related discussions on our forum.

2. Oracles

dForce partners with ChainLink to provide price feeds for USX and supported collaterals.

3. Audits

dForce lending and USX protocols have undergone extensive code reviews and security audits by Trail of Bits, ConsenSys Diligence, CertiK, Certora (formal verification), with a bug bounty launched through Immunefi.

4. Centralization vectors

USX is a fully decentralized and permission-less stablecoin protocol that anyone can use to mint USX or redeem for its collateral assets at any time.

5. Market history

USX maintains a stable price peg and is currently supported on many DeFi protocols including Uniswap, Curve, DODO, Velodrome, Saddle, KyberDMM, Platypus, SwapFish, etc.

The Balancer pool will be created as soon as we receive feedbacks from the Balancer community.

6. Value

By creating a USX/USDC pool on Balancer, a considerable volume will be captured by Balancer when users execute trades on dForce Trade (DEX aggregator).

Both dForce and Balancer take a multi-chain approach to facilitate long term growth, making it easy for our collaboration to mirror on multiple blockchains in the shortest possible time.

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First, you have not linked a pool here, so it is a bit hard to understand what you’re looking for a gauge on. stableswap or pool2? At what weighting and if stableswap what A-factor?

As far as I can tell USX is way off peg (80ish cents) and has a total of about 20k USD in volume per day. Is the intention here to somehow use balancer emissions to bring USX back to a dollar peg and massivly increase volume?

Can you maybe go into a little more detail about how this creates value for Balancer. This request would be a lot stronger if USX was at peg and had a history of maintaining it for at least a while.

2 Likes
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USX/USDC is a stableswap. The depeg is largely due to how CMC/Coingeck track price - a lot of pairs and DEXes are missing, and we are trying to fix it with their team.

i.e., USX/USDC is tradable on Velodrome (OP) with $1.4m liquidity. Another example would be USX/USDC pool on SwapFish (Arbitrum) with $1.3m liquidity.