We propose adding Basis Cash (BAC) to Curve as a metapool paired with the 3pool.
Basis Cash (BAC) is a seigniorage-based stablecoin. It is the first implementation of the Basis stablecoin system deployed to Ethereum. It has seen significant growth since being fully-activated on December 11th 2020: growing from less than $1M AUM to >$20M. It recently has traded on Uniswap with daily volumes of ~$10M.
Basis Cash currently primarily trades with DAI on the Uniswap exchange. This is woefully inefficient as both currencies target a price of $1 and Uniswap provides no provisions for improving liquidity in this situation. A Curve pool offers many benefits for both the Basis Cash and Curve ecosystems:
● Easier for capital to move in and out of the system
● Token-sink for the BAC token
● Possible future CRV gauge rewards
● Fees from Basis Cash trading volume
As with many Curve pools, supporting more assets means more risk. The metapool design does make it so that the 3pool (and all other pools) would be shielded from any issues arising from BAC misbehaving as a stablecoin within its own pool.
A helpful BAC community member has already provided updated Curve contracts for this purpose here: https://github.com/poop-factory/curve-contract/tree/master/contracts/pools/bac