Proposal to add the pyUSD/USDC pool to the Gauge Controller

Proposal to add the pyUSD/USDC pool to the Gauge Controller


Proposal to add pyUSD/USDC Pool to the Curve Gauge Controller.
Pool deployed here.

References/Useful links:

Link to:


PayPal is a globally recognized leader in the payments and remittance industry. Its entrance to the crypto space with the launch of pyUSD represents a significant step into the Web3 world as the company looks to expand and improve its product offerings.

Launched in August 2023, pyUSD is a partnership between PayPal and the Paxos Trust Company, whose previous assets include USDP and BUSD. The code for pyUSD is built on Paxos previous success with the aforementioned USDP token. Paxos is a New York State Department of Financial Services regulated Trust that acts as a qualified custodian of fully bankruptcy remote and segregated funds. Paxos issued coins such as pyUSD are always redeemable 1:1 and its reserves are held in cash and US Treasuries.

While the pyUSD/USDC pool currently holds no funds Trident is working with partners to provide deep liquidity to the pool in the very near future.

About Trident

Trident Digital is an experienced digital asset solutions provider that works with counterparties to achieve a number of goals across the crypto space. We aim to scale stablecoin adoption both within and outside the crypto market through strong relationships and experience navigating both the crypto and traditional finance markets. Our previous on-chain work includes facilitation of incentives for the USDP-PSM.


This proposal aims to add the pyUSD/USDC pool to the Curve Gauge Controller, a pool made up of pyUSD and USDC. By including this pool in the Curve ecosystem, we aim to deepen liquidity, increase trading volume, and provide a more efficient trading experience for pyUSD users, improving the overall user experience for PayPal customers.

Currently any non-retail user of pyUSD faces significant slippage when swapping pyUSD to other stables, this presents significant barriers to large scale adoption of the token. In concert with this proposal Trident is working with large capital allocators to provide deep liquidity for the pair.


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.

Paxos is a centralized entity functioning in a similar way to Circle, the issuer of USDC. There is no governance structure outside of that dictated by the New York State Department of Financial Services.

All pyUSD is issued 1:1 against funds held in either cash or US Government Treasuries. All funds backing pyUSD are held bankruptcy remote with New York Banking laws protecting customer funds from being used to satisfy any debt of Paxos.

Oracles: Does the protocol rely on external oracles? If so, provide details about the oracles and their implementation in the protocol.

There is currently no on-chain oracle for pyUSD with deep liquidity in this pool being a major barrier to the creation of one.

On the off-chain side Paxos works with Withum, a nationally-ranked audit firm, in order to provide timely monthly attestations of reserves backing pyUSD.

Audits: Provide links to audit reports and any relevant details about security practices.

PayPals pyUSD underwent an audit with the well recognized Trail of Bits in December of 2022 in order to identify any “…flaws that could result in a compromise of confidentiality, integrity, or availability”. The audit did not uncover any significant flaws or defects that could impact system confidentiality, integrity, or availability.

A historical database of monthly attestations and reports for the underlying assets of pyUSD can be found on the Paxos website as prepared by WithumSmith+Brown, PC.

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.

Besides those inherent to any Trust operated in the space, pyUSD doesn’t face any significant centralization issues. All pyUSD is minted 1:1 against Paxos custodied funds and the engagement of Withum provides regular transparency and insights into the assets held.

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?

Since launch pyUSD has observed strong peg performance with low volatility. Monthly attestations have lined up consistently with on-chain mints.

The Curve pool was launched on 11/20/2023, while it currently has no TVL (and as such has had no volume) Trident is working with counterparties to quickly deploy TVL in the order of tens of millions of dollars. Trident will also be undertaking the use of incentive markets in order to drive TVL to the pool. The pool’s success over the coming weeks will additionally allow for the launch of the aforementioned Chainlink oracle for pyUSD which will allow its inclusion in various lending and CDP protocols.

We couldn’t be more excited to begin this journey with the Curve ecosystem!


Thank you for your proposal. Could you please clarify your relationship with Paypal? Are you operating under an official capacity for Paypal?


Hey appreciate you reading and responding to the proposal solace. We work with Paxos who is the issuer of pyUSD


That makes sense, thank you. It is great that Paxos and Trident recognize the need for deep onchain liquidity and have identified Curve to facilitate this goal.

Trident will also be undertaking the use of incentive markets in order to drive TVL to the pool.

More specifically, does Trident be plan to provide Voting Incentives on Votium?

Thank you.


Votium is our initial target yep! May also look to other vote markets in the future, but they currently seem to have the highest incentive effectiveness


The Reserve core team supports this @mv_trident. Big fans of additional safe stabelcoins having deep onchain liquidity.

Additional data point for others to check out: Bluechip has rated pyUSD an A- with an A being possible with longer maintenance of peg and additional disclosures on which custodians hold what. PayPal USD

@mv_trident let me know if you are open to collaborate on liquidity and TVL goals. Think there are a few ways the Reserve core team and Trident could work together.


Real interesting. Could be a strong signal that Paypal is moving the needle to defi.

Did this proposal move forward?


We have enacted a gauge after a successful vote. Find it here, funds will come into the pool soon:

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A note here, we’ve been alerted that the stableswap-ng deployment we used for this pool has some issues when used as an oracle for pricing.

Once we’re alerted that the new code is audited and deployed we’ll be posting on this thread once again, deploying a new pool, and working to get a gauge. After this we’ll migrate efforts over to the new pool.

If you have been following along here and were thinking of using this pool for a product deployment please wait off till the new pool is up.

Again, thanks to everyone who participated here!

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great news and congrats!

If you don’t mind answering some questions for, as I’m still getting situation here on curve governance. Once you submitted this forum post, how did you start a gauge vote? Did you have to create the pool first then submit a emission vote on the dao curve page?

This will be very helpful as I plan on doing a governance process for CRV emissions down the line.

Thank you :slight_smile:

  1. deploy pool
  2. forum post up for a few days
  3. navigate to the locker
  4. lock crv to gain 2500 veCRV weight (10000 for 4 years or 2500 for 1 year)
  5. deploy gauge
  6. navigate to dao and create vote
    6a) you’ll have 7 days to get the votes you need
  7. once vote passes enact gauge within your proposal on the dao page

Greatly appreciate you!

Hey all,

Due to unforeseen circumstances with stableswap-ng pools we’ve had to deploy a new pool as well as a new gauge and vote.

If you supported the last pool we humbly request you also vote for the new pool.

Here is the new pool (check out that sweet new name):
and here is the gauge vote (and apologies if the ipfs text is giving you as much trouble as it is me):

Please also note that Vote ID 527 can be ignored as it is a gauge vote for a pool to which we will not deploy nor incentivize.

Happy to field any questions here or through dm’s

Mason - Trident Team

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