Proposal to add GHO/USR pool to the Gauge Controller

Gauge Proposals
#1

title: Proposal to add GHO/USR pool to the Gauge Controller
author: @TokenLogic
created: 2025-01-15

Summary

This publication proposes adding a Stableswap-NG Pool gauge on mainnet. This Stableswap-NG Pool contains GHO and USR.

References/Useful links

GHO Links

USR Links

Protocol Description

GHO is a decentralized, overcollateralized stablecoin, initially minted exclusively from assets supplied to the Aave V3 Protocol.

GHO’s value is programmatically pegged to the U.S. Dollar, maintained through market efficiencies. The protocol leverages smart contracts to oversee the minting and burning of GHO tokens, as well as to manage the interest rates associated with borrowing GHO.

Resolv introduces USR, a stablecoin fully backed by ETH and pegged to the US Dollar. Engineered with a delta-neutral framework, USR ensures price stability while leveraging a tokenized insurance pool, RLP, to provide enhanced security and overcollateralization.

USR achieves its stability and transparency through a 100% ETH-backed collateral pool. By employing a delta-neutral strategy using perpetual futures, the stablecoin hedges against price fluctuations, maintaining its USD peg with reliability and clarity. Adding to its robustness, RLP serves as a critical insurance mechanism, mitigating risks like counterparty defaults and negative interest rates. This mechanism guarantees overcollateralization, further enhancing the stablecoin’s stability and security.

Motivation

This proposal seeks to integrate the Stableswap-NG GHO/USR Pool into the veCRV gauge on the Ethereum mainnet. The Stableswap-NG GHO/USR Pool consists of Aave’s decentralized stablecoin (GHO) and Resolv’s stablecoin (USR).

The primary collateral backing GHO loans includes WETH, wstETH, wBTC and cbBTC.

Allowing the ALC to incentivize this pool with CRV rewards will enable Curve and liquidity providers to benefit from fees generated by swaps.

Specification

  • 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 choice.
    • GHO is decentralized, it does not have a single concentrated point of control. Instead, GHO is controlled by Aave Governance.
    • For Resolv, the governance token, RSLV, is expected to launch soon, marking a significant step in the protocol’s evolution. Currently, protocol operations, including smart contract deployment and collateral pool management, are overseen through a multi-signature wallet. As the protocol transitions to its public phase, governance will shift to a more decentralized model, with contributors facilitating public discussions and on-chain voting to empower the community in decision-making processes.

  • 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. Additionally GHO also has a Chainlink oracle
    • USR has a Pyth oracle and will soon have other ones.

  • Audits

    • Multiple GHO audits can be found here, with the latest one done by Certora in September 2024.
    • Resolv is audited by MixBytes, Pessimistic and Pashov links to audit reports can be found here

  • 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.
    • The collateral pool backing Resolv tokens is managed by a centralized backend and operations team. Both off-chain and on-chain activities are overseen by a group of signatories comprising members of the executive team, ensuring secure and efficient management of the protocol’s assets.

  • Market History

    • GHO has now built a robust market track record, with its peg fully stabilized and successfully enduring multiple stress tests over the past year. The stablecoin currently boasts a circulating supply of $153M, backed by a collateral ratio of approximately 3.
    • Resolv and USR have been live since April 2024 and have current TVL of approx $507M.

Pool and Gauge

Address of the pool: 0x4628f13651eaD6793F8d838B34B8f8522Fb0cc52
Address of the gauge: 0xc372CCdD24Bb0753CEB78bBaC4D24EB7dE4aBE4e

Disclosure

TokenLogic is a Service Provider and delegate within the Aave ecosystem.

2 Likes
#2

I strongly support this proposal. Both GHO and USR are very solid tokens. USR is basically the next USDE, but with a lower risk profile. GHO has been very good as well historically.

1 Like