Summary:
Proposal to add three pxETH pools to the Gauge Controller to enable users to assign a gauge weight and mint CRV.
Three pxETH pools:
- pxETH/WETH
- pxETH/frxETH
- pxETH/stETH
References/Useful links:
Website: https://redacted.finance/ and https://dineroismoney.com
Documentation: https://docs.redacted.finance/ and https://dineroismoney.com/docs
Github Page: Redacted Protocol · GitHub
Communities:
-
Twitter: https://twitter.com/redactedcartel
-
Discord: REDACTED
Dune Analytics: https://dune.com/funky/redacted
Protocol Description:
pxETH is ETH liquid staking token (“LST”) developed by the Redacted Protocol as part of its Dinero Protocol offering. It is a liquid and fungible receipt token for ETH deposited into the Dinero protocol which is then staked and used to run validators for the Ethereum network. Users can deposit their pxETH into an auto compounding pxETH vault in exchange for an apxETH vault token which benefits from Ethereum staking rewards and other revenue forms such as MEV tips and block rewards. Future apxETH yield and pxETH withdrawals can be tokenized and used within DeFi. Further details about pxETH and apxETH can be found in the whitepaper here.
pxETH can be redeemed for ETH from the Dinero protocol either instantaneously for ETH which has yet to be staked or via ETH which is unstaked from validators. In the future, an incentivized withdrawal pool will facilitate quicker pxETH withdrawals from the protocol especially when there is an ETH unstaking queue and/or adverse market conditions.
Since launching on 13 December 2023, pxETH has c. $1.3 million of TVL, of which c. $700k is in a pxETH/ETH Maverick liquidity pool.
Motivation:
To provide additional immediate pxETH liquidity, the Redacted DAO is incentivizing DEX liquidity for pxETH, using governance power in its treasury and BTRFLY bribes. Redacted has a long and close relationship with Curve and Convex - it has one of the largest DAO CVX and CRV holdings and is the creator of the most popular vlCVX liquid wrapper, pxCVX. Because of this close relationship with Curve, we want to have Curve as the primary liquidity venue for pxETH.
Recognizing the importance of: (i) working together with other LSTs; (ii) providing liquidity providers attractive yield venues; and (iii) driving volume and fees through the Curve protocol, we are applying for gauges for three pxETH pools, paired against WETH, frxETH and stETH.
A gauge for each of these pools would allow Redacted to use its governance power and bribes to direct emissions to the gauge and achieve its goal of providing immediate pxETH liquidity, whilst also increasing trading volume and generating fees for veCRV tokenholders.
Specifications:
- Governance: Provide current information on the protocol’s governance structure. Provide links to any admin and/or multisig addresses, and describe the powers afforded to these addresses. If there are plans to change the governance system in the future, please explain.
Redacted’s governance is currently off-chain using Snapshot. The multisig address is: 0xA52Fd396891E7A74b641a2Cb1A6999Fcf56B077e. Decisions relating to inflation, liquidity, partnership or DAO treasury go through a DAO vote, and then are executed by the multisig. On-chain governance will come at a later stage.
- Oracles: Does the protocol rely on external oracles? If so, provide details about the oracles and their implementation in the protocol.
No oracles are currently used.
- Audits: Provide links to audit reports and any relevant details about security practices.
Link to all audits can be found here.
- Centralization vectors: Is there any component of the protocol that has centralization vectors? E.g. if only 1 dev manages the project, that is a centralized vector. If price oracles need to be updated by a bot, that is a centralized vector. If liquidations are done by the protocol, that is also a centralization vector.
4/7 multisig (0xA52Fd396891E7A74b641a2Cb1A6999Fcf56B077e) controls the pushing of validators public keys to the contract.
- Market History: Has the asset observed severe volatility? In the case of stablecoins, has it depegged? In the case of an unpegged asset, have there been extreme price change events in the past? Provide specific information about the Curve pool: how long has it been active, TVL, historical volume?
The pxETH/WETH, pxETH/frxETH and pxETH/stETH pools have just been created and have not yet been seeded.
pxETH has c. $700k of liquidity in a Maverick liquidity pool and has not experienced a de-peg.