Proposal to add msETH/OETH to the Gauge Controller

Gauge Proposals
#1

Summary

Proposal to add msETH/OETH to the Gauge Controller.

OETH now has Yield Forwarding and Pool Booster enabled to help drive more incentives for the pool, leading to deeper liquidity and improved LP earnings. This is one of the new Yield Forwarding and Treasury Booster pools.

References/Useful links:

OETH:

msETH:

On Curve:

msETH/OETH Curve Pool: Curve.fi
Gauge: https://etherscan.io/address/0x8C84B88562cED07F84aF488CC45d434186d07B6e

Protocol Description:

Origin Protocol is a suite of complimentary DeFi products designed to increase economic opportunity for all. These permissionless and composable smart contracts provide superior user experiences across DeFi in a groundbreaking multichain yield ecosystem.

Metronome’s msETH is a loosely pegged CDP. Metronome offers a system that primarily enables users to mint synthetic assets against productive collateral.

Motivation:

Origin Protocol is heavily involved in the Curve ecosystem with OUSD and OETH pools holding tens of millions in TVL. Metronome is interested in participating in the flywheel as well and would like to move six figures of liquidity into this pool. By approving this gauge, the underlying yield from the OETH in the pool will be used to help incentivize the pair, activating the Curve flywheel.

Specifications:

OETH

  1. Governance: OETH is governed by xOGN holders with any upgrades to the contracts being time-delayed by a 48-hour timelock.
  2. Oracles: Origin Protocol uses Chainlink for WOETH price feeds and also has a has a DIA oracle
  3. Audits: OETH code is well audited with OpenZeppelin and Certora auditing the latest changes to add Yield Forwarding to the codebase.
  4. Centralization vectors: OETH is a decentralized stablecoin backed by WETH and ETH. ETH backing WOETH is staked on the beacon chain.
  5. Market History: OETH was launched in 2023 and currently has millions in TVL.

msETH

Llama Risk provided a comprehensive overview of risks associated with Metronome Synth previously. The main security concerns are as follows:

  • Degree of Centralization - Currently, Metronome treasury and operations are controlled by administrative multi-sigs. The report references an intention to move towards a future Token Lockup model for on-chain governance. Since this report, these contracts have returned from audit and mainnet testing is in progress.
  • Time in Market; User Adoption - Metronome Synth has only been live since January 2023. Since then, TVL has trended up steadily - see DeFi Llama dashboard - and Metronome Synth was not negatively impacted during recent stablecoin depeg situation.

Vote

We would be grateful if someone could assist with putting this gauge up for vote for us. Thank you for your support

1 Like
#2

Link to vote: Curve.fi

1 Like