Add 2Stable (USDs/FRAX Arbitrum) Pool to the Gauge Controller

Summary:
Proposal to add 2Stable (USDs/FRAX) Factory Pool to the Gauge Controller enabling users the ability to assign gauge weight and mint CRV.

CRV rewards will be added to the preallocated pool rewards of 88,888/SPA daily + bribes from the Sperax and FRAX community.

USDs is a fully backed stablecoin that automates popular stablecoin yield strategies for new defi users. This proposal is submitted jointly by Sperax and Frax Finance. It is in Sperax and Frax’s interest to promote deep liquidity for USDs and FRAX on Arbitrum in order to service novice crypto users seeking stablecoin yield and advancing the overall economic ecosystem of Arbitrum.

References/Useful links:
Website: app.sperax.io
Token Address: Sperax USD (USDs) Token Tracker | Arbiscan
Twitter: https://twitter.com/SperaxUSD
Medium: https://medium.com/sperax
Community: discord.gg/sperax
GitHub: Sperax Protocol · GitHub

Protocol Description:
The SperaxUSD protocol wraps popular yield generating strategies into a liquid stablecoin that uses positive rebases to distribute this yield to users in a gas-free manner.

Sperax USD (USDs) has a unique design that keeps the peg at $1 and generates yield in $USDs for holders. $USDs’ are fully collateralized by USDC, USDT and soon FRAX.

At a rate of 1% per year, the protocol becomes partially backed by the protocol’s ability to mint SPA when redeeming USDs. Collaterals are invested into the Curve.fi protocol to earn yield. This yield is given to USDs holders without having to pay gas.

Currently, yield is generated via the Curve 2pool.
Once FRAX is added as collateral, yield will also be generated with the VST/FRAX pool.

SperaxUSD is already available through regulated front ends such as streetbeat.com and transak.com.

Motivation:
Curve is the foundation of USDs liquidity. With this pool set up for a gauge, an incentivized inclusion on Curve provides visibility to USDs and incentivizes liquidity through CRV, FXS and SPA. CRV incentivization would help deepen the liquidity of USDs and lay the groundwork for future collaborations with FRAX.

Such collaborations include:
-FRAX as collateral in USDs
-FPI as collateral in USDs
-Treasury swaps
-Protocol owned liquidity programs

Governance:
The USDs token contract was deployed by Sperax and its current “Admin” and “Owner” role is a 3 of 5 multisig. Both roles will be transferred to the governance contracts in Q3.

Audits: GitHub - Sperax/Audit_Reports: All audit reports associated with Sperax
*Quantstamp booked for an additional audit in June.

Market History:
The USDs token has not experienced significant volatility or depegging against the US dollar due to its ability to always be swapped for $1 of collateral, even during and after the UST collapse.

11 Likes

Great proposal. Info here is very helpful. Thanks team

2 Likes

Bright perspectives!

2 Likes

Love this proposal! Full support

2 Likes

Love the protocol design and incentives. CRV :handshake: USDs :handshake: FRAX

2 Likes

I really like this idea. USDs is the leading stablecoin on Arbitrum, and by using FPI as collateral Frax can significantly expand its use case. Happy to see two of my favorite stablecoin projects working together in this crypto winter.

1 Like

I trust the usds and stack this token.

2 Likes

Strongly approve of this! Two of my favorite projects.

1 Like

Totally support this and we’d be willing to help build out this joint liquidity pool together. Another option is to pair this with FRAXBP that is going live soon. Either way, definitely interested in helping build out FRAX<>SPERAX liquidity together on Arbitrum.

1 Like