Proposal to add eUSD+FRAXBP to the Gauge Controller
References/Useful links:
Reserve website + documentation: https://reserve.org/
Curve Gauge Vote: [TODO]
Snapshot Convex vote: [TODO]
Reserve’s Discord: https://discord.gg/Ryk6P67c
MobileCoin Discord: https://discord.gg/mobilecoin
Protocol Github: https://github.com/reserve-protocol/protocol
Reserve Protocol Twitter: https://twitter.com/reserveprotocol
eUSD Description:
The Electronic Dollar (eUSD) is a decentralized 1:1 asset-backed stablecoin built with Reserve Protocol (reserve.org). It is decentralized, community-governed, and censorship-resistant. eUSD embodies the following characteristics:
- Pegged to USD and redeemable 1:1 for $1 worth of collateral at Register.app
- Proof of reserves on-chain 24/7 (held in heavily audited smart contracts)
- Backed 1:1 by a diversified basket of yield-bearing trusted stablecoins. Currently aUSDC, aUSDT, cUSDC, cUSDT, although this could eventually be updated by governance voting if they choose.
- Censorship-resistance (from utilizing receipt tokens from some of the most successful/proven DeFi protocols Aave and Compound)
- Over-collateralized with staked RSR and governed by the community in a fully on-chain decentralized way. In the case of any default of underlying, the protocol would auction off defaulted collateral and make up the difference by selling staked RSR.
About Reserve
The Reserve Protocol allows for the permissionless creation of asset-backed, yield-bearing & overcollateralized stablecoins on Ethereum. The end goal is to provide highly scalable, decentralized, stable money in contrast to volatile cryptocurrencies such as Bitcoin and Ether.
We believe that open exploration and competition can lead to the discovery of the best type of basket and governance system for ideal on-chain money. There’s a lot to explore, and it’s better not to keep that under the control of the initial founding team. For this reason, the Reserve Protocol is entirely permissionless—allowing anyone to deploy a Reserve stablecoin (RToken) with their preferred collateral basket, governance system and revenue distribution.
Reserve Rights (RSR) is an ERC20 token common across all RTokens. RSR can be staked on a particular RToken, where it has two roles: (1) Staked RSR receives a portion of the RToken collateral’s revenue in exchange for being the first capital-at-risk in the case of collateral default. (2) Staked RSR proposes and votes on changes to the RToken’s configuration.
Motivation for Gauge:
To deepen on-chain eUSD liquidity, to ensure more efficient swaps and to further grow demand for the token.
Specifications:
- Governance: RSR holders who choose to stake RSR on eUSD can propose changes to the basket or revenue split. The mandate of eUSD governors is to 1. Maintain a $1 USD peg and be fully collateralized & 2. Generate yield to eUSDRSR stakers who provide overcollateralization.
- Oracles: eUSD uses ChainLink price oracles in order to monitor prices of collateral assets.
- Audits: Audits have been performed by multiple top tier audit agencies.
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Centralization vectors:
- Gnosis Safe multi-sig
- The protocol will have automated operations to monitor and manage collateral for various RTokens. Examples include auctioning off backstop insurance collateral (i.e. RSR) and auctioning off collateral revenue to buy RSR or RTokens.
- Market History: The RSR token has been actively trading since May 2019. Price movements are correlated to the overall crypto market cycles. RSR currently trades on 40+ exchanges including Binance, KuCoin, Huobi and FTX with an average daily volume of $50M to $200M over the last 90 days. RSR currently trades on Curve in a RSR+FRAX/USDC (FRAXBP) pool. If the Reserve platform becomes successful with many RTokens governed by RSR, we believe this gauge may bring consistent volume and fees to Curve.