Proposal to add swETH/frxETH to the Gauge Controller

Gauge Proposals
#1

Summary:

We are looking to join Frax’s [FIP - 182] frxETHBP & WETHR Program - Miscellaneous - Frax Finance Governance. This will allow our swETH/frxETH pair to grow with Frax and deepen liquidity for both swETH and frxETH.

References/Useful links:
Curve Pool Link - https://curve.fi/#/ethereum/pools/factory-crypto-247/deposit
Curve Pool - 0x67e0bdbe0a2c5999a60d048f50e794218056b767
Curve Gauge - 0xe6a9fd148ad624a5a8700c6366e23e3cd308dfcb
swETH Link https://etherscan.io/address/0xf951E335afb289353dc249e82926178EaC7DEd78

Link to:

• Website - https://www.swellnetwork.io/

• Documentation - https://docs.swellnetwork.io/swell/what-is-swell

• Github Page - https://github.com/SwellNetwork

• Communities - https://discord.gg/swellnetwork

• Other useful links?

Forum → https://forum.swellnetwork.io/
Twitter - https://twitter.com/swellnetworkio

Protocol Description:
Swell is a liquid staking protocol that has just launched on Ethereum. swETH is our liquid staking token and accrues in value as the underlying eth earns rewards. We are audited by sigma prime and plan to bring some friendly competition to the LST scene.

swETH’s current price is $1898.171034 according to our balancer pool with 190,000 in liquidity. This pool has been up for roughly a week and we expect it grow rapidly over the next few weeks

Motivation:

Swells Motivation for setting up this pool is for Curve to act as one of our main liquidity venues. By being part of Frax’s WETHR program, we can enter the curve space in a more sustainable way for us while helping Frax on their goal to replace WETH.

Specifications:

  1. Governance: Swell doesn’t have a governance setup at the moment. We discuss with the community on our forum and discord. However once we launch our token we plan to move to a more decentralized model

  2. Oracles: swETH does not rely on an oracle

  3. Audits: You can find our audit with Sigma Prime here v3-core-public/Sigma_Prime_Swell_Network_Security_Assessment_Report_v2_0.pdf at master · SwellNetwork/v3-core-public · GitHub

  4. Centralization vectors: Although Swell is a decentralized and non-custodial liquid staking solution, since we don’t have a governance token, we are not fully decentralized yet.

  5. Market History: Has the asset observed severe volatility? swETH has not experienced any depegs. Our Balancer pool has roughly $190,000 in it and the price is inline with the underlying exchange rate(1.021 vs 1.026). We expect this gap to close after liquidity entering slows as most people tend to deposit single sided swETH which is why the price is slightly lower.