Proposal to add msUSD/FraxBP, msETH/ETH to the Gauge Controller

Gauge Proposals
#1

Summary:

Add Gauges across Metronome Synth pools msUSD/FraxBP and msETH/ETH to the Gauge Controller.

References/Useful links:

• Website: https://metronome.io

• Documentation: https://docs.metronome.io/metronome-synth/metronome-synth-protocol

• Github Page: https://github.com/autonomoussoftware    

• Communities: https://discord.gg/metronome

• msUSD Pool: https://curve.fi/#/ethereum/pools/factory-v2-251/deposit

• msUSD Gauge: 0xd5f2e6612E41bE48461FDBA20061E3c778Fe6EC4

• msETH Pool: https://curve.fi/#/ethereum/pools/factory-v2-252/deposit

• msETH Gauge: 0x941C2Acdb6B85574Ffc44419c2AA237a9e67be03

Protocol Description:

Metronome Synth is a multi-collateral, multi-mintage synthetics platform that allows users to issue synthetic assets as CDPs in a decentralized, non-custodial manner. Metronome emphasizes productive collateral, allowing users to perform looping farming and generally achieve more capital efficient utilization of their bluechip assets. Users can swap synthetic assets with no slippage inside the Metronome Synth application or utilize the assets externally in DeFi platforms like Curve.

Motivation:

Liquidity Incentives is a core tenant of Metronome Synth’s ability to offer open market liquidity in a scaling manner. The project has allocated significant resources to a CVX position to capture liquidity incentives. Additionally, Metronome plans to cooperate with other partners around the Curve ecosystem to coordinate incentives (ie: support on msUSD-FraxBP through Frax’s incentive program)

Specifications:

  1. Governance: Metronome is governed by the 0xd1DE3F9CD4AE2F23DA941a67cA4C739f8dD9Af33 treasury multisig. Treasury multisig has ownership of project treasury assets and administrative permissions over the protocol, such as the ability to add new collateral assets and modify platform parameters (like mintage caps for synthetic assets). There are some global parameters constraining certain values like the balance fee, which dictates how expensive it is to hold a synthetic mintage.

  2. Oracles: Yes, Metronome synth uses Chainlink oracles for the price of collateral and synthetic assets.

  3. Audits: Audit · autonomoussoftware/metronome-synth-audit Wiki · GitHub

  4. Centralization vectors: Currently, the project is governed by the treasury multisig (2-of-4) which is made up of doxxed engineers of parent company Bloq. Over time, permissions are intended to be handed off to token holders using on-chain governance voting, similarly to Curve.

  5. Market History: The assets have not yet experienced any price instability. We anticipate that these synthetic assets will behave like “soft-pegged”, generally trading 1:1 but not required to keep an exact peg. Open market forces, such as liquidity incentives and arbitrage, are intended to maintain the peg. Balance fee rates and mintage caps are intended to be utilized as more-or-less of a monetary policy should assets consistently trade above or below peg.

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