Proposal to add crvUSD/GHO to the Gauge Controller

Gauge Proposals
#1

Summary:

This is a joint proposal developed by karpatkey and TokenLogic with the intent to add gauge support for crvUSD/GHO pool on mainnet.

References/Useful links:

GHO Links

Protocol Description:

GHO is a decentralized overcollateralized stablecoin that is initially only minted from assets supplied to the Aave Protocol. GHO’s value is programmatically aligned to the U.S. Dollar, which will be maintained through market efficiency.

Motivation:

This proposal aims to add the crvUSD/GHO pool to the veCRV gauge on mainnet.

This new pool combines Aave’s decentralized stablecoin and Curve’s crvUSD with updated parameters for improved trading efficiency.

Specifications:

1. Governance:

The Aave Protocol is a fully decentralized, community-governed protocol managed by AAVE, aAAVE and stkAAVE token holders. Token holders collectively discuss, propose, and vote on upgrades to the Aave Protocol through Aave Governance. AAVE, aAAVE and stkAAVE token holders can either vote on new proposals or delegate their voting power to an address of their choice.
As GHO is decentralized, it does not have a single concentrated point of control. Instead, GHO is controlled by Aave Governance.

2. Oracles:

The Aave Protocol will always value 1 GHO at the equivalent value of 1 USD, regardless of market price. This helps to maintain stability creating immediate opportunities to help GHO maintain its peg. Information about the Price Orcacle contract can be found in GHO’s documentation.

3. Audits:

Multiple GHO audits can be found here, with the latest one done by Sigma Prime in July 2023.

4. Centralization vectors:

As mentioned above, GHO is controlled by Aave Governance which is fully decentralized, community-governed, and managed by AAVE, aAAVE and stkAAVE token holders.
Users can be liquidated on their GHO borrow positions, the same as any other asset in the Aave Protocol.

5. Market History:

Though GHO has been traded below peg, market price has been significantly closer to peg after recent efforts like stkGHO, interest rate adjustments and new AMM pools like the one under the scope of this proposal.

Pool and Gauge

Link to the pool: 0x635EF0056A597D13863B73825CcA297236578595

Link to the gauge: 0x4717C25df44e280ec5b31aCBd8C194e1eD24efe2

UI: Curve.fi

2 Likes