Proposal to add CDCETH/ETH to the Gauge Controller

Gauge Proposals
#1

Summary:

Crypto.com Staked ETH (CDCETH) is a Liquid Staking Token (LST) that allows users to accrue ETH staking yield. Users can stake ETH on Crypto.com and wrap it to CDCETH to participate in the DeFi ecosystem. This is a proposal to add CDCETH/ETH pool on Ethereum to the Gauge Controller.

CDCETH/ETH Pool - [0x86EA1191a219989d2dA3a85c949a12A92f8ED3Db]

CDCETH/ETH Gauge - [0xc0806D02B4E9ac39278300A1D169564758B02433]

Gauge vote: https://dao.curve.fi/vote/ownership/675
Convex snapshot: Snapshot

References/Useful links:

Protocol Description:

Crypto.com was established in 2016 with the goal of making cryptocurrency accessible to everyone. Since then, it has become a leading crypto trading platform, earning the trust of 80 million users worldwide through its user-friendly App and Exchange.

In 2023, Crypto.com introduced an on-chain staking service on its App and Exchange. As of March 2024, Ethereum stands out as one of the most staked assets on the platform.
To enhance the liquidity and capital efficiency of staked ETH, Crypto.com introduced a Liquid Staking Token (LST) called Crypto.com Staked ETH (CDCETH) in November 2023.

CDCETH is a token that generates yield and represents users’ staked ETH and staking rewards on the Crypto.com platform. Users have the flexibility to convert their staked ETH to CDCETH at any time without incurring any fees, and they can withdraw it to other platforms using the Cronos or Ethereum network. By including CDCETH/ETH in the gauge controller and enabling CRV reward emission, we anticipate a wider adoption of CDCETH.

Motivation:

Key motivations for adding CDCETH/ETH pools to Curve Gauges :

  • Deepen the liquidity of CDCETH/ETH for users that want instant staking exposure or exit liquidity

  • Grow CDCETH’s on-chain adoption with additional CRV rewards and bribe market incentives for the CDCETH/ETH LPs

Specifications:

  1. Governance: The token is governed by Crypto.com, a centralized exchange with 80 million users that has gained various regulated licenses in the key markets. To name a few licenses that Crypto.com has obtained:

    • Electronic Money Institution Authorisation by UK Financial Conduct Authority (FCA)
    • Virtual Assets Service Provider (VASP) License from Dubai’s Virtual Assets Regulatory Authority
    • Major Payment Institutions Licence from the Monetary Authority of Singapore
    • Money Transmitter Licenses in US
    • Electronic Money Institution License in Europe
    • Class 3 Virtual Financial Assets License in Europe
    • And many more…

  2. Oracles: CDCETH does not rely on an oracle.

  3. Audits: Audited by BlockSec
    https://crypto.com/document/blocksec_securityaudit2024

  4. Centralization vectors: Besides those inherent to any LSTs issued by a centralized exchange, CDCETH doesn’t have any other significant centralization issues.

  5. Market History: No significant price volatility on CDCETH/ETH pair since it was launched in November 2023 (CoinGecko price chart here, compared with ETH). CDCETH also has deep order book liquidity on Crypto.com Exchange (CDCETH/ETH pair, CDCETH/USD pair).