Gauge proposal for iUSD-msUSD

BAL Gauges
1

Gauge Proposal Template:

Summary:

Proposal to add gauge support for the new iUSD-msUSD Composable Stable pool on Balancer v3 for Ethereum.

References/Useful links:

Link to:
https://www.infinifi.xyz/
https://docs.infinifi.xyz/
GitHub - InfiniFi-Labs/infinifi-protocol
https://metronome.io/
https://odyssey.finance/

Protocol Description:

infiniFi

infiniFi is a decentralized fractional reserve staking system designed to improve financial stability and capital efficiency while aligning depositor incentives. It allows users to mint iUSD, a deposit receipt token backed by liquid and locked collateral. Depositors can choose lock durations to earn higher returns, enabling automated maturity laddering of reserves and reducing duration mismatch risks, challenges inherent in traditional banking.

Key features of iUSD include:

  • Fractional Reserve Design: Achieves higher yield across depositor segments by combining liquid and locked capital into duration-matched strategies.

  • Depositor-Driven Allocation: Users determine how their funds are deployed based on preferred liquidity timelines.

  • Yield Optimization: Liquid deposits earn top DeFi rates, while locked positions gain amplified returns.

  • Blockchain Transparency: Fully on-chain and governed by smart contracts, ensuring transparency and trustlessness.

Metronome Synth

Metronome Synth is a multi-collateral/multi-synthetic protocol that enables users to post existing crypto holdings as collateral to mint synthetic versions of other assets. msUSD is Metronome’s synthetic stablecoin, which can be minted against productive or naked collateral and used throughout DeFi for lending, farming, and trading. Metronome Synth is currently deployed on Ethereum, Optimism, and Base.

Odyssey

Odyssey is a DeFi aggregation platform that unifies multiple protocols into a seamless smart contract account (SCA) experience built on ERC-4337. It offers multi-chain integrations, automated transactions, and yield aggregation, making sophisticated DeFi strategies accessible to all users.

Motivation:

Introducing a gauge for the iUSD/msUSD Composable Stable pool supports a strategic integration between all three protocols:

  • Looping Vault Infrastructure: Odyssey plans to launch a looping vault that borrows msUSD to deposit proceeds into infiniFi, executing a carry trade strategy. This pool will serve as critical secondary liquidity infrastructure supporting that vault.

  • Liquidation Liquidity: Deep pool liquidity ensures efficient liquidations for the looping vault, maintaining system health and user confidence.

  • User Loop Efficiency: LPs and vault users benefit from low-slippage swaps between iUSD and msUSD when entering or exiting looped positions.

  • Yield Synergy: msUSD borrowers can capture the spread between Metronome borrow rates and infiniFi deposit yields, creating organic demand for both assets.

  • Ecosystem Growth: A gauge will accelerate TVL growth and establish this pool as the primary liquidity venue for iUSD/msUSD trading, supporting broader DeFi composability.

Specifications:

  1. Governance: infiniFi is governed by smart contracts with a future pathway toward DAO-managed control over key parameters and reserve deployment logic. Depositors drive asset allocation through bonding preferences, creating transparent and market-driven governance outcomes.

  2. Oracles: iUSD leverages on-chain DeFi markets such as Aave and Compound for asset yields. Pricing for redemptions and collateral values is computed via verifiable on-chain mechanisms. The system currently does not rely on off-chain oracles but may integrate oracle feeds (e.g., Chainlink) for advanced features.

  3. Audits: Link to the audits https://docs.infinifi.xyz/Security-1fb44c414f3680d6b5ccfccefdf2c5cb

  4. Centralization vectors: infiniFi is non-custodial and fully on-chain. All deposits, locks, and allocations are governed by smart contracts. There is no reliance on centralized intermediaries or off-chain execution, minimizing centralization risks.

  5. Market History: iUSD has maintained exceptional stability since its launch on June 1st, 2025. This is a new Balancer v3 pool launching to support the growth of iUSD and msUSD liquidity. Odyssey has had success building looping strategies that feed trading volume to such pools.

  6. Value: LPers will see steady trading flows from Odyssey’s looping vault and in addition occasional liquidations. This should make for substantial income from trading fees alone. The pool will also, once the gauge is approved, receive steady gauge emissions flows via a coincentivzed bribe campaign.

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