References/Useful links:
• Website - https://app.rings.money/
• Documentation - https://docs.rings.money/
• Twitter - x.com
Protocol Description:
Rings is the leading meta stable protocol on Sonic. Rings stable wrappers accumulated over $32M TVL and is ranked 1st CDP on Sonic, by Defillama.
Rings is a meta-stablecoin for USD & ETH offering competitive yield for stakers, providing deep liquidity for Sonic DeFi, and funding Sonic DeFi projects via its lockers.
Built on the Veda BoringVaults and draws inspiration from Blast’s bridge capital efficiency and Solidly’s ve(3,3) model. Rings aims to establish itself as the premier medium of exchange within the Sonic ecosystem.
Rings Protocol incorporates a governance mechanism inspired by Solidly, providing scUSD and scETH holders with three distinct options to participate and influence the ecosystem:
Liquid Holding: Users may choose to hold their scUSD or scETH tokens in a liquid state, allowing them the flexibility to utilize these assets freely within Sonic as they see fit.
Staking for Yield: By staking their scUSD, users receive stkscUSD, enabling them to earn yields generated by various DeFi protocols on Sonic. The stkscUSD functions akin to a vault managed by Veda, deploying the scUSD into diverse DeFi strategies to offer passive income streams.
Locking for Governance: Users can opt to lock their stkscUSD to obtain vestkscUSD, a veNFT that grants them governance rights within the Rings Protocol. While this choice means forfeiting direct staking yields, it opens the door to earning rewards through voting incentives (also called ‘bribes’) within the gauge voting system.
Motivation:
Rings is looking to seed a scUSD/USDC.e stableswap and scETH/wETH pool on Curve as the major liquidity source of scUSD. This allows scUSD users to get access to USDC.e liquidity without going through the Veda vault redeem queue. This is crucial for scUSD DeFi integration. For instance, setting up scUSD Pendle pool will require this liquidity for users to instantly enter or exit PT positions. Another example is including scUSD into lending protocol will require this liquidity for price oracle and liquidation. Deeper liquidity ensures that users can easily enter or exit scUSD position, which is essential for the overall usability and attractiveness of the scUSD within the Sonic ecosystem. To ensure the deep liquidity, Rings is committed to growing pool liquidity through bribes and our own governance token emissions.
Specifications:
- Limited Rights Control: Currently, key rights of scUSD contracts are controlled by multi signature wallet with 3/5 setup. They are limited to:
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Changing the voter contract
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Add/kill/revive/update gauge & gauge caps
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Update vote delay
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Freeze/unfreeze deposit budgets
- Audits: Audit reports for scUSD could be found inside our docs: Security Framework and Audits | Rings Protocol . The audits are conducted by top tier auditing firms including Spearbit, 0xMacro and Openzeppelin to ensure the security of the protocol.
- Centralization Vector: Multisig wallet is utilized to do the daily operations of scUSD backing between farming strategies of the Veda vault.
- Market History: scUSD and stkUSD have been able to maintain the peg since the launch. It has reached around $34M TVL recently.
Links:
scUSD/USDC.e Pool / Token: 0x2fd7ccda50ed88fe17e15f3d5d8d51da4ccb43f3
child gauge (Sonic) for Rings scUSD/USDC pool: https://sonicscan.org/address/0x12F89168C995e54Ec2ce9ee461D663a6dC72793A#code
Root gauge (ETH mainnet) for Rings scUSD/USDC pool: https://etherscan.io/address/0x9496Bb56aEdA8305A2EfF1814ec058795Ed6E16B#code
scETH/wETH Pool / Token: 0xff11f56281247ead18db76fd23b252156738fa94
child gauge (Sonic) for Rings scETH/WETH pool: https://sonicscan.org/address/0x4F7Fc3F5112eAef10495B04b5dd376E50c42dA51#code
Root gauge (ETH mainnet) for Rings scETH/WETH pool: https://etherscan.io/address/0xf0dF994D065C79B8cDFb64aC5c5223Fe67aa9477#code