Add tETH pools on Ethereum Mainnet to Curve gauge controller

Gauge Proposals
#1

Summary:

This proposal seeks to add a gauge each for the (1) tETH/wstETH and (2) tETH/weETH liquidity pools to the GaugeController. By incentivizing these pools, we aim to bring the primary on-chain liquidity from Treehouse to Curve.

  • tETH/wstETH Liquidity Pool: 0xa10d15538e09479186b4d3278ba5c979110dddb1
  • tETH/wstETH Liquidity Gauge: 0xcf1787f70533b4cfb5b2f727d8d024107518943a
  • tETH/weETH Liquidity Pool: 0x394a1e1b934cb4f4a0dc17bdd592ec078741542f
  • tETH/weETH Liquidity Gauge: 0xfe964d3e779752c7598985436a8598f13f22f6f4

References/Useful links:

Protocol Description:

Treehouse Protocol, the decentralized arm of Treehouse Labs, is leading the charge in revolutionizing the decentralized fixed income market. Focused on building the fixed income layer for digital assets, Treehouse introduces innovative fixed income products and primitives. Our primary offering is:

  • tAssets (Liquid Staking Tokens 2.0): These tokens aim to unify fragmented on-chain interest rate markets for Proof of Stake (PoS) chains. tAssets provide holders with real yield beyond just the native network rewards through interest rate arbitrage on lending platforms. The first iteration, tETH, is a liquid staking token that addresses fragmentation in Ethereum’s interest rate market. tETH allows users to participate in the convergence of Ethereum interest rates while maintaining flexibility for DeFi activities. By borrowing ETH against wstETH (wrapped Lido Staked ETH), tETH amplifies potential yields by increasing the overall staked position. Since launching in September 2024, Treehouse has reached a Total Value Locked (TVL) of 360M USD and is actively expanding to other Layer 2s and chains.

Motivation:

The tETH/wETH pool incentivization is crucial for:

  • Deepening Liquidity: Attracting liquidity providers to ensure low slippage and improved trading efficiency for tETH holders.
  • Expanding Adoption: Providing seamless access to tETH for Ethereum-based users, increasing its utility and demand.
  • Migrating tETH Liquidity to Curve: Currently, there is a pool with significant liquidity on Uniswap. The goal is to migrate most of that liquidity to Curve.

Specifications:

  1. Governance: Treehouse Protocol is currently operated as a privately managed entity without a formal on-chain governance mechanism.
  2. Oracles: tETH-wstETH Exchange Rate / Ethereum: https://etherscan.io/address/0x7B2Fb2c667af80Bccc0B2556378352dFDE2be914
    tETH-wstETH Exchange Rate / Arbitrum: https://arbiscan.io/address/0x98a977Ba31C72aeF2e15B950Eb5Ae3158863D856
    tETH-wstETH Exchange Rate / optimism: https://optimistic.etherscan.io/address/0x4e8e8F5b3d0f49e00F3DFb9CF827d1A0FBe33B21
  3. Audits: GitHub - treehouse-gaia/audit-report
  4. Centralization vectors: Treehouse Protocol relies on Chainlink’s decentralized price feed for tETH, ensuring reliable and trust-minimized pricing. No single entity controls updates, minimizing centralization risks.
  5. Market History: tETH has maintained a strong price correlation with wstETH, its underlying asset, without significant deviations.
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