Summary:
Proposal to add gauge support for TricryptoFRAX pool on Ethereum. This Tricrypto pool contains FRAX, tBTC, and frxETH. This is a pool is a collaboration between Frax Finance and Threshold Network.
References/Useful links:
Frax Links
- Website: https://frax.finance/
- Documentation: https://docs.frax.finance/
- Github: GitHub - FraxFinance/frax-solidity: Solidity implementation of the Frax Protocol
- Discord: Frax Finance
- Twitter: https://twitter.com/fraxfinance
Threshold Links
- Website: https://threshold.network
- Documentation: https://docs.threshold.network/applications/threshold-usd
- 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 âśś
- Twitter: https://twitter.com/ThresholdUSD
Protocol Description:
The Frax stablecoin (FRAX) is a crypto collateralized stablecoin pegged to the US dollar that is highly scalable, trustless, and ideologically pure on-chain money. Frax Ether (frxETH) is an ETH pegged stablecoin used as a replacement for WETH in smart contracts. Designed to leverage the Frax ecosystem and fully crypto collateralized.
tBTC is a decentralized wrapped Bitcoin, that is 1:1 backed by mainnet BTC. Unlike other wrapped Bitcoins, the BTC that backs tBTC is not held by a central intermediary, but is instead held by a decentralized network of nodes using threshold cryptography. tBTC is trust minimized and redeemable for mainnet BTC without a centralized custodian.
Motivation:
This proposal aims to add the TricryptoFRAX pool to the a veCRV gauge on Ethereum.
This new Tricrypto pool combines three premium decentralized crypto primitives from Frax and Threshold. Frax will incentivise this pool on Curve, with plans to add it to the FXS gauge on Frax as well.
Specifications:
1 Governance:
Frax
FRAX and frxETH are governed by Frax’s utility token, Frax Share (FXS), and veFXS holders through onchain governance. FXS can be staked as veFXS to govern the ecosystem’s stablecoins and infrastructure protocols. FXS tokens have various utility features within the overall Frax economy.
Threshold
tBTC is governed by the network’s work token, T. T token holders govern the DAO via proposals raised to the Threshold forum, which can be raised to a vote via Snapshot, as well as the on-chain Governor Bravo module via Boardroom.
tBTC contract deployments are currently managed via the Council multi-sig, a 6-of-9 multi sig managed by trusted community members: 0x9F6e831c8F8939DC0C830C6e492e7cEf4f9C2F5f
In the future, all contract authorities will be passed to the Governor Bravo contract.
2 Oracles:
Frax
Frax Protocol utilizes the Frax Oracle contract and Dual Oracle / Price Source contract, which gets two prices (high and low) from two different onchain sources and returns them both. This contract then writes the prices to the Frax Oracle contract. These contracts are largely inspired by Fraxlend Dual Oracles. More info at https://docs.frax.finance/frax-oracle/frax-oracle-overview
Threshold
tBTC does not use a price oracle.
3 Audits:
Frax
Multiple Frax audits can be found here: https://docs.frax.finance/other/audits
Threshold
Least Authority: Audit of Keep Network tBTC Bridge v2 - Least Authority
Chainsecurity: Threshold Network Smart Contract Audit - Chainsecurity
Immunefi Bug Bounty: Threshold Network Bug Bounties | Immunefi
4 Centralization vectors:
Frax
Frax utilizes fully onchain, trustless, and decentralized governance based on Compound/OpenZeppelin Governor that controls Gnosis Safes. The protocol uses veFXS to govern the ecosystem’s stablecoins and infrastructure protocols.
Threshold
Threshold Network governance is decentralized, and updates are ratified by the DAO.
tBTC contracts updates are currently managed by a 6-of-9 Council multi-sig, with seats held by elected members of the DAO.
5 Market History:
FRAX (live since 2020), and frxETH (live since early 2023), have both demonstrated strong price correlation to USD and ETH respectively. Extensive explanation of FRAX stability can be found previously on this forum here: Add [FRAX-[3Pool]] Metapool
tBTC is a wrapped BTC token, and is pegged to the price of BTC through direct redemption. Since launch, tBTC’s price has not significantly diverged from that of BTC. tBTC launched in January of 2023, and is currently collateralized 1:1 by ~2100 BTC.
Pool and Gauge
TricryptoFRAX
Link to pool: 0x4D1941a887eC788F059b3bfcC8eE1E97b968825B
Link to gauge: 0x4B43fEaB8f5ccD38Ac0831DD7eC797330114F058
UI: https://curve.fi/#/ethereum/pools/factory-tricrypto-22/deposit