Summary:
This is a proposal to add a gauge for the rUSD/3CRV (factory pool 71) to the Gauge Controller. This will allow users to assign gauge weights and mint CRV.
Abstract:
RAMP is an optimized lending platform that lets users earn and borrow at the same time. Users deposit assets such as BTC, ETH, BNB, MATIC, RAMP and LP tokens to earn yield. Users can mint rUSD, a stablecoin, using these deposits as collateral. Deposit yields on collateral mostly outweigh borrow fees, which means users earn a net positive return over time, even as they borrow.
Currently, rUSD is available on Ethereum, Binance Smart Chain and Polygon, with a total circulating supply of ~$20M across the three chains as at time of writing. Avalanche is expected to be integrated by Q1 2022. The rUSD/3CRV Ethereum Curve pool is now live with ~$1M in liquidity, and there are ~$10M in rUSD/BUSD liquidity on PancakeSwap (BSC) and ~$2M in rUSD/USDC liquidity on QuickSwap (Polygon).
The governance token of rUSD is RAMP, which is listed on Binance, FTX, Gate, PancakeSwap and Uniswap. As at time of writing, TVL on the RAMP platform is ~$73M, with daily revenues of ~$4000-5000.
RAMP was publicly launched in October 2020, and to date, has experienced no security incidents. The RAMP Dapp has undergone multiple audits by auditors including Beosin and Hacken, which are viewable here: GitHub - RAMP-DEFI/RAMP_SECURITY_AUDITS
Motivation:
rUSD, as a fully-backed stablecoin, is a natural fit for Curve and its optimized stable swap bonding curve. There is a clear value proposition for RAMP users to utilize their rUSD on the most efficient stablecoin swap.
At the same time, we believe that we can add value to the Curve protocol because rUSD is being developed as a “transit coin” across multiple chains. RAMP users deposit and lock assets within RAMP protocol to mint rUSD, and move rUSD as transferable liquidity between networks. We therefore envision RAMP users to utilize rUSD as a medium for liquidity transfers between Ethereum, Avalanche, BSC and Polygon by Jan 2022, with Curve liquidity pools as the core swap venues where available.
As part of achieving this vision, the RAMP community has already voted “Yes” on the RAMP DAO platform to engage the Convex Finance community in return for supporting CRV gauge emissions. ~USD30M in RAMP tokens from the protocol reserves have been set aside for Convex bribes.
Specification:
rUSD is a stablecoin that is minted from overcollateralized assets ranging from BTC, ETH, LINK, BNB, RAMP and LP tokens. The minimum collateralization ratio is 135%, and liquidation ratio is 130%. This over-collateralization ensures that the rUSD stablecoin value always remains fully backed.
rUSD was live since April 2021, and has retained its value through periods of market-wide liquidation events (i.e. 19 May 2021 and more recently, 3 Dec 2021).
The stablecoin peg mechanism is interest rate based. The interest rate increases when rUSD is below peg, and reduces when rUSD is above peg. Protocol revenue is currently used to support the peg through daily rUSD buybacks.
rUSD on PancakeSwap and QuickSwap had experienced a more volatile peg due to the non-optimized bonding curve. For comparison purposes, a pool composition of 48.7% MetaUSD / 51.3% 3CRV results in the following swap price differential: 0.950 on PancakeSwap vs 0.999 on Curve (an inefficiency of ~5%).
The liquidity pool compositions between rUSD and its stablecoin pair has typically been maintained within a 1.5-2.0% band of each other. Hence we expect that rUSD will have no issues maintaining a tight peg to 3CRV on Curve.
For:
rUSD/3CRV should have a gauge on Curve to earn CRV.
Against:
rUSD/3CRV should not have a gauge on Curve to earn CRV.
Poll:
The goal of this post is more to measure the community’s feeling about adding a gauge for this pool. A vote proposal shall be created if the community is comfortable for us to proceed.