Summary:
Proposal to add the TOKE/ETH factory pool to the Gauge controller to enable users to assign a gauge weight and mint CRV.
References/Useful links:
Website: www.tokemak.xyz
Documentation: docs.tokemak.xyz
Github: docs.tokemak.xyz
Medium: medium.com/tokemak
Protocol Description:
Tokemak is a decentralized market maker that aggregates liquidity with single-sided exposure and mitigated IL risks for LPs. This liquidity is subsequently deployed to DEXs as directed per TOKE stakers.
Motivation:
Tokemak aims to migrate its liquidity from Uniswap (already deprecated), and Sushiswap, to Curve V2. For this purpose, the protocol has so far accumulated ~142,000 CVX to incentivize liquidity for its TOKE/ETH pool, and in the future, a TOKE/FRAX pool.
Additionally, Tokemak is currently working on integrating Curve V2 as a destination for its liquidity. To foster a strong alignment with the Curve ecosystem, CRV rewards earned by the protocol are permanently locked into Convex as cvxCRV. As of now, Tokemak holds ~1.2M cvxCRV.
This migration to Curve V2 will ultimately benefit both protocols through higher volumes from Pool 2 deployments that represent more fees for veCRV and cvxCRV holders. A gauge for a TOKE/ETH pool would therefore allow Tokemak to incentivize this transition and deepen its liquidity on Curve.
Specifications:
1. Governance: Decisions regarding new token reactors are voted on by Tokemak’s community through C.o.R.E. events. Ultimate reactor spin up is a decision left to the DAOs/companies behind those chosen tokens. Liquidity deployments are determined based on TOKE voters in the protocol.
Currently, protocol operations are controlled by two multisigs. In the future, as more automation and features move on-chain, so shall the functionality these multisigs control.
DAO/Treasury Multisig: 0x8b4334d4812C530574Bd4F2763FcD22dE94A969B
a) This is a 5 of 9 multisig that controls our treasury funds and the boundaries of the liquidity deployment system.
b) It has the “Admin” role on our Manager contract. For more information about the various roles for that contract see:
docs.tokemak.xyz/protocol-information/contract-interactions/manager-mechanics
Dev Coordinator Multisig: 0x90b6C61B102eA260131aB48377E143D6EB3A9d4B
a) This is a 5 of 12 multisig that currently performs liquidity deployment operations and is the owner of any fund-holding contracts.
2. Oracles:
Off-chain processes for staking rewards utilize a combination of Chainlink and
CoinGecko for token pricing. Liquidity deployment relies on Chainlink and spot prices on pools, falling back to CoinGecko when necessary.
3. Audits:
docs.tokemak.xyz/protocol-information/network-security
Contracts have undergone multiple audits which can be found here:
docs.tokemak.xyz/protocol-information/network-security/omniscia-degenesis
docs.tokemak.xyz/protocol-information/network-security/quantstamp-9-20-21
docs.tokemak.xyz/protocol-information/network-security/trail-of-bits-12-22-2021
docs.tokemak.xyz/protocol-information/network-security/omniscia-2-23-2022
docs.tokemak.xyz/protocol-information/network-security/omniscia-curve-convex-controllers
We have recently begun utilizing Halborn’s continuous Security Advisor as a Service for ongoing and regular auditing, and to provide general pen-testing and op sec services. We’ve also had a bug bounty through Immunefi since Aug, 2021. Ongoing audits are underway for new features.
4. Centralization vectors:
Liquidity deployments levels are determined by TOKE voters in the system. The liquidity deployment process is currently a weekly operation performed by the Tokemak team and a combination of the two multisig addresses identified above. Near term, this process will move into a bot to be performed automatically with manual team checks to ensure deployment of assets remains safe. Long term, plan is to move this to a staking/consensus style approach run by the community.
5. Market History:
The TOKE/ETH factory pool has been active since the 26th of April and it was seeded with $2M by Tokemak - Curve.fi