Proposal to add fUSDC-fDAI to the Curve Gauge Controller

Gauge Proposals
#1

Gauge Proposal Template:

Summary:

This is a proposal to add fUSDC-fDAI, on Ethereum to the Gauge Controller to enable users to assign gauge weight and mint CRV.

References/Useful links:

Website https://fluxfinance.com/
Documentation https://docs.fluxfinance.com/
Github https://github.com/flux-finance
Communities https://discord.fluxfinance.com/, https://twitter.com/FluxDeFi
Defillama https://defillama.com/protocol/flux-finance

Protocol Description:

Flux is a special-purpose lending protocol facilitating stablecoin loans against tokenized US Treasuries collateral. Flux is similar to Treasury repo markets, where large institutions effectively lend and borrow over-collateralized against Treasuries. Flux is designed to deliver Treasuries-backed yield in a highly liquid form on-chain. Flux was developed by Ondo and is now owned by Flux Finance. Flux is an autonomous protocol on the Ethereum blockchain with certain upgrades governed by the Ondo DAO. Lenders can supply stablecoins (DAI, USDC, USDT, and FRAX) to earn yield, while borrowers can pledge tokenized Treasuries as collateral. The tokenized Treasuries supported are in the form of OUSG.

The pool is made of fDAI and fUSDC, and can be minted by respectively lending DAI and USDC in Flux. Investors can withdraw DAI and USDC by respectively redeeming fDAI and fUSDC.

Exchange rates: fDAI, fUSDC

Motivation:

The fDAI-fUSDC pool allows fDAI or fUSDC holders to benefit from additional instant liquidity, thanks to a swap via this pool. For example, an fDAI holder can withdraw USDC from Flux after swapping fDAI for fUSDC.
To scale this use case, the pool needs to attract TVL.

Flux will incentivize the pool to attract liquidity providers.

Specifications:

  1. Governance:
    Flux is governed by the Ondo DAO.
    Discussions happen on the governance forum, and votes are held on Tally.

  2. Oracles:
    The OUSG oracle is updated daily by the Ondo team, following the nav price provided by the fund administrator. This oracle is used to define the value of borrower’s collateral.

  3. Audits:
    Flux went through an audit via C4 (Trust & Security | Flux Finance Docs).

  4. Centralization vectors:
    The OUSG oracle is updated daily by the Ondo team, following the nav price provided by the fund administrator.
    As OUSG can only be held by investors who meet specific requirements, liquidations are performed by stakeholders who meet the same requirements. Those requirements are detailed on ondo.finance.

  5. Market History:
    Since their creation, fTokens experienced a very stable growth in their underlying value (fDAI, fUSDC).
    As of April 23, Flux’s TVL is $40m.

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