Add USDY/weETH on Ethereum to Curve Gauge Controller

Proposal to add USDY/weETH on Ethereum to Gauge Controller

References/Useful links:

• Website -
• Documentation - Whitepaper |
• Github Page - etherfi-protocol · GitHub
• Twitter -

Ondo Finance
• Website -
• Documentation - USDY | Ondo Finance
• Twitter -

Protocol Description:

Ether.Fi is a decentralized, non-custodial liquid staking protocol built on Ethereum, allowing users to stake their ETH and participate in the DeFi ecosystem without losing liquidity. The protocols eETH is a liquid restaking token (weETH is the non-rebasing equivalent), serving as a representation of ETH staked on the Beacon Chain, which rebases daily to reflect the associated staking rewards. Users can deposit ETH into the liquidity pool on Ethereum Mainnet to mint eETH, hold eETH to accrue rewards, and use eETH within DeFi or swap it back to ETH at any time via the liquidity pool. The protocol currently employs a permissioned validator set, however this will transition to permisionless based on the protocol roadmap.

ETH staked through the liquidity pool accrues normal Ethereum staking rewards, and will also be natively restaked with EigenLayer. Staking with eETH on automatically natively restakes that ETH to EigenLayer and accrues normal staking rewards while allowing users to keep composability on their eETH in other DeFi protocols.

USDY is a tokenized note secured by short-term US Treasuries, and bank demand deposits.

Motivation: and Ondo Finance are looking to seed a USDY/weETH cryptoswap pool on Curve to serve as a primary source of liquidity for both assets. To ensure success, both and Ondo Finance are committed to growing pool liquidity through bribes and incentives.


  1. Governance: Currently, the protocol utilises a time-locked multi signature wallet, with the signatories being doxxed executives and investors.
  2. Oracles: The Protocol relies on an oracle for withdrawals and beacon state. The Oracle is based on the hash consensus mechanism and run by the committee members. Initially, the team will be the only ones to operate the Oracle nodes, however the protocol grows, it will add more external parties to join the committee.
  3. Audits: Audit reports for the protocol are found on the GitBook page - Audits | The audits have been carried out by reputable firms such as Certik, Zellic, Nethermind, Omniscia and Solidified to ensure the security of the protocol. An audit competition was also recently completed through Hats Finance.
  4. Centralization vectors: The centralization vectors primarily relate to the Oracle until it becomes decentralized, in line with the protocol roadmap. The price (staking rewards for rebasing) and the validator management (spinning up new validators and exiting them for liquidation) are also currently centralized for the early stages of the protocol to ensure mobility. As mentioned above, the signatories currently consist of the doxxed executive team and investors.
  5. Market History: eETH has accumulated approx. 1.2M of ETH staked within the protocol since launching in the middle of November 2023.

Pool / Token: 0x9e3015393a42a1ee63b9878be253414a47a8d36c