CIP#22 - Adding a [LINKUSD, [3Pool]] Metapool

Proposals
#1

Summary:

LINKUSD is a synthetic stable coin collaterised at 300% by LINK. It was created by the ARC protocol which aims at creating synthetic USD stable coins from various DeFi tokens.

Over the past few weeks since launching, LINKUSD has had trouble maintaining the peg due to using a 50/50 Balancer pool causing wild fluctuations in the price with a small imbalance in the pool composition.

This proposal is to create crvLINKUSD pool with parameters fine-tuned for LINKUSD to help maintain the peg. ARC will be doing a small 2 day test (+ARC incentives) with the pool before scaling it to more users.

A short explanation of what ARC does is there: https://twitter.com/arcxgame/status/1299148549733539841
Their website: https://arcx.game/
Some resources: https://gamepaper.arcx.game/

Important Notes:

  • This pool will NOT receive CRV as a gauge will not be introduced for it until peg is returned
  • This will be marked as high risk on the protocol
  • Deposits will be disabled in case of high slippage
  • 3 Pool LPs which do not provide liquidity in this LINKUSD pool would NOT be affected by a loss of peg

Motivation:

As Curve has historically been successful in bringing synthetic assets closer to their peg, we hope this pool will help LINKDUSD find its peg whilst bringing fees and incentives to the Curve protocol.

Specification:

  • ARC is in the process of being audited by Quantstamp
  • LINKDUSD cannot be currently minted as it has reached its beta smart cap of $2M LINK
  • ARCx is the protocol native token which will be offered as incentive

Poll:

https://signal.curve.fi/#/curve/proposal/QmRRqdF2zYYu8MFrpMnZXm7oQ6f9EmRw2pGCYGFjLasxwa

3 Likes
#2

This is great. Very interesting to be supporting more metapools without adding more liquidity gauges.

1 Like
#3

I guess we are all here for experimenting.
Let’s save ARC.

But AFTER the audit, please, since it’s ongoing.

#4

Hey, Kerman (founder of ARC here). We got our audits completed by Quantstamp - here’s the report: https://github.com/arcxgame/audits/blob/master/202009B4-d22c805-final%20-%20Report.pdf

4 Likes
#5

What’s the plan to incentivize this pool? Sounds like LPs will earn ARC token, but will that be a longer term incentive? Without a CRV allocation to this pool, it will need a pretty healthy incentive to draw liquidity

#6

We’re trying to scale gradually and slowly so not too worried about attracting as much liquidity as possible right now

2 Likes
#7

I think it will be the only place to swap LINKUSD to other stable at a reasonable price so I would expect volume and liquidity should come naturally because of that.

1 Like