Proposal to add hyUSD/eUSD to the Gauge Controller


Proposal to add hyUSD/eUSD to the Gauge Controller

References/Useful links:

Link to:

• High Yield USD linktree:

• Curve Gauge Vote:

• Snapshot Convex vote: Snapshot

• Github Page:

• High Yield USD Discord (Reserve): Discord

• High Yield USD Twitter: Twitter

High Yield USD Description:

High yield USD (hyUSD), is a decentralized flatcoin initially pegged to $1 USD that provides convenient access to DeFi yields, enabling holders to grow and preserve their wealth. hyUSD is 1:1 asset backed by a basket of other yield bearing stablecoins including eUSD as well as tokenized lending with exposure to US Treasuries. Given the unique design and current market conditions it is estimated to yield 8% or better to anyone holding hyUSD in any wallet, outpacing the rate of inflation in over 100 countries around the world and providing safe refuge for purchasing power everywhere. As with all asset-backed currencies issued on the Reserve protocol, hyUSD is overcollateralized and with auditable proof of reserves available on-chain 24/7.

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.


To deepen on-chain hyUSD liquidity, to ensure more efficient swaps and to further grow demand for the token.


  1. Governance: RSR holders who choose to stake RSR on hyUSD can propose changes to the basket or revenue split. The mandate of hyUSD is a decentralized flatcoin that provides convenient access to DeFi yields, enabling holders to earn passive income on their capital. Governance should aim to take low to moderate risk to return high DeFi yields in order to mitigate against inflation.

  2. Oracles: hyUSD uses ChainLink price oracles in order to monitor prices of collateral assets.

  3. Audits: Audits have been performed by multiple top tier audit agencies.

  4. Centralization vectors:
    1.Gnosis Safe multi-sig
    2.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.

  5. 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 and Huobi 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.

Why pair with eUSD? Curve generally likes to concentrate liquidity around base pools (3CRV/FraxBP) so there should be a pretty good reason to do otherwise

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The intention was to drive volume and utility to eUSD as the “base pair” for the Reserve Protocol’s RTokens, such that it would be most efficient to swap between different RTokens through eUSD. The eUSD pool is paired with FRAXBP, so swapping into hyUSD is only two hops away from other major stablecoins.

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