Summary:
Proposal to add gauge support for thUSD/crvUSD pool and thUSD/3crv on Ethereum.
References/Useful links:
Link to:
- Application: https://app.thresholdusd.org
- Website: https://threshold.network
- Documentation: Threshold USD - Threshold Docs
- Github Page: GitHub - Threshold-USD/dev: Threshold USD monorepo containing the contracts, SDK and Dev UI frontend.
- Forum: https://forum.threshold.network/
- Discord: Threshold Network ✜
- Twitter: https://twitter.com/ThresholdUSD
Protocol Description:
thUSD is a collateralized stablecoin Bitcoin based on a fork of Liquity protocol. Interest free thUSD loans are created when a user deposits tBTC and ETH as collateral with a minimum collateral ratio of 110%. Undercollateralized positions are liquidated by the protocol, and collateral is sold to maintain a minimum system-wide collateralisation of 150%.
Users are able to deposit thUSD in the stability pool, which closes at-risk troves and distributes the collateral pro-rata to stability pool participants. Fees are collected for loan origination and redemption.
Motivation:
This proposal aims to add a veCRV gauge for the Curve thUSD/crvUSD and thUSD/3CRV pools on Ethereum.
thUSD is about to enter a public launch phase, where the key directive will be to grow liquidity on Curve.
The DAO has budgeted T token bribes to incentivise this pool, with the goal to attract liquidity to the and have Curve as the centre of thUSD liquidity on Ethereum.
Specifications:
1 Governance:
thUSD operates as a collection of immutable smart contracts. As a Liquity fork, these contracts have been rigorously stress tested in a real-world scenario. Threshold has also sought independent audits.
The parameters that can be adjusted by the DAO are: the amplification factor of the BAMM contract, thUSD price feeds (Chainlink and Tellor), and thUSD collateral options.
These parameters are managed by the Threshold DAO via the Governor Bravo onchain governance system.
2 Oracles:
thUSD uses two price oracles to determine system collateralization, which are supplied by Chianlink and Tellor.
3 Audits:
thUSD Audits
thUSD Bug Bounty
tBTC Audits
4 Centralization vectors:
thUSD parameters are governed by Threshold DAO, which operates via a decentralized onchain governance system.
Updateable parameters are: the amplification factor of the BAMM contract, thUSD price feeds (Chainlink and Tellor), and thUSD collateral options.
Parameter changes require an onchain governance cycle to change.
5 Market History:
thUSD is a collateralized stablecoin backed by ETH and tBTC. It targets a 1:1 peg with USD, and is built on a sophisticated automated system that achieves price stability by liquidating undercollateralized troves. Liquid thUSD can be used to close at-risk troves, or pay back debt.
While thUSD has recently been deployed on mainnet, there is demonstrable history of these mechanisms creating a stable and usable USD-pegged asset.
Both thUSD pools have recently been created.
thUSD/crvUSD
Link to pool: https://etherscan.io/address/0xe547725ffe16b2fc61aa5adab5b2860ffda0008d
Link to gauge: https://etherscan.io/address/0xd99a5bfcced8c706f989ae8e42b4f6d162e81f3e
thUSD/3crv
Link to pool: https://etherscan.io/address/0x8d6ed9ba971cf08441fc542acecd35f691afa752
Link to gauge: https://etherscan.io/address/0xbde0c2c28383f9a8e2b7f22247adb2b472d9f7b5
Value:
The thUSD pools on Curve are intended to be a key anchor of thUSD price stability.
Threshold has allocated T incentives to bootstrap liquidity via incentivised bribes on Warden. Similar programs have successfully bootstrapped tBTC liquidity in the past.
Our goal is to create deep, sticky liquidity on Curve and benefit from existing stablecoin orderflows. This will serve to increase TVL and volume on Curve.