Proposal to add TRYB/USD(3CRV) to Gauge Controller:

Proposal to add TRYB/USD(3CRV) to Gauge Controller:

This proposal is submitted by the BiLira Team.

Summary:

This is a proposal to add TRYB/USD(3crv) pool to the Gauge Controller, giving LPs the ability to assign gauge and mint CRV by participating in the pool.

TRYB(BiLira) is a Turkish Lira backed and 1:1 collateralized ERC-20 compatible stablecoin issued by BiLira Teknoloji A.Ş. (“BiLira”). The company was founded in 2019 to provide a cryptocurrency alternative to the Turkish Lira that is fully decentralized, meaning that it can be transferred and/or stored on any Ethereum, Avalanche, Solana, Polygon and BNB wallet or exchanged for other cryptocurrencies on a variety of centralized and decentralized exchanges. On DeFi applications, Turkish users mainly use TRYB to transfer and exchange value, and to earn yield. By adding TRYB to Curve, Turkish DeFi users would be able to access and use that platform directly with their Turkish Lira through the BiLira fiat ramp.

USD variant stablecoins are also the most used crypto assets by Turkish Users. TRYB is actively exchanged for USD variant stablecoins. If a healthy and liquid pool is fostered with the gauge incentive, the pool has the potential to become the main hub where the TRYB - USD swaps take place. This would mean that the users would swap TRY for TRYB through BiLira and then utilize the Curve pool for USD swaps. Total TRYB/USD volume was above $300+ M last year.

With almost double the crypto adoption rate of Turkey compared to that of Europe, this will also empower users without access to fast, low fee transactions that are still stuck in traditional financial ways. BiLira wants to scale this to meet the demand from users and will partake in on-chain gauge governance and boost usage. BiLira will also try to keep the pool balanced as more LP’s participate and more transactions will occur.

After receiving numerous requests from our community to add TRYB to Curve, our team created and deposited the initial liquidity to the TRYB/USD(3CRV) pool.

For the next step, we propose to add the TRYB/USD(3crv) pool to the Gauge controller, and incentivize users to also add liquidity to the pool.

References/Useful links:

Contracts: Ethereum, Avalanche, Polygon, Solana, BNB

Protocol Description:

The BiLira (TRYB) token is a full-reserve stable cryptocurrency that is built on 5 different blockchains, issued and managed by the BiLira organization, backed by the Turkish Lira and collateralized 1 : 1, secure and compatible with ERC-20 token standards. Users can use the web application on BiLira.co to conduct TRYB issuances and redemptions between their local banks and their digital wallets.

The minting of on-chain TRYB is from fully collateralized bank deposits. Users connect their wallets and deposit fiat currency (TRY) into BiLira’s bank account. BiLira confirms the transaction and verifies the smart contract. The smart contract then mints corresponding TRYB tokens and sends them to the customer’s crypto wallet. Corresponding fiat currency is held in BiLira’s reserves. This information can be verified through our audit reports that are done via 3 party firms.(link to the reports can be found below). Another factor is that BiLira doesn’t hold the users crypto assets. The issuance process is non-custodial and the assets are sent to the users wallet addresses that they provide. For redemption, users send their TRYB to their BiLira redemption wallets, and convert the specified TRYB to Turkish Lira through BiLira.co. All of the redeemed TRYB from customers are burned in a monthly routine. BiLira firm uses enterprise-grade multi-layer security measures such as Multi-Sig wallets through Fireblocks.

Motivation:

Cryptocurrency adoption in Turkey is one of the highest in the world and continues to grow as a result of the increasing demand for digital assets and financial services. A survey by ING illustrates that almost 18% of Turkish people have used or owned cryptocurrency in some form, compared to 9% across the European Union. This has been driven by the high inflation rate and economic uncertainty that has been experienced in Turkey over the last few years. The Turkish Lira (TRY) has been especially severely impacted, with its value dropping by over 40% since the beginning of 2020. As a result, Turkish users actively seek for alternative financial instruments and solutions. By creating the TRYB/USD(3crv) pool, we wanted to open the gates of Curve to the Turkish DeFi users.

With such a large base of crypto users, TRYB pools on Curve Finance would provide Turkish users with easy access to the decentralized finance ecosystem and make it easier for them to adopt and trade crypto assets. Besides, all TRYB holders can benefit from low transaction fees as well as faster swaps and many incentives to hold their assets in the ecosystem when handling their finances through Curve.

Furthermore, by incentivizing TRYB on Curve there will be an incentive for users to provide liquidity and actively swap tokens. This will consequently result in more users joining the platform, increased trading volumes and the pool established for TRYB on Curve will also help increase awareness of BiLira’s token and its utility as a stablecoin pegged 1:1 with the Turkish Lira. Providing this type of service could draw in new Turkish traders who may not have previously considered investing in cryptocurrencies or utilizing decentralized platforms. For instance, as more people begin using TRYB tokens for their transactions or contribute to the relevant liquidity pool, traders will have more opportunities to arbitrage between different exchanges and earn profits from price discrepancies across markets. As a matter of fact, incentivizing TRYB on Curve will also create new opportunities for institutional investors who are looking for ways to diversify their portfolio with digital assets.

Specifications:

You may find the full details on the project in the BiLira White Paper and for all the other information please refer to BiLira homepage.

  1. Governance:

    TRYB is centralized and issued by BiLira and does not have a governance forum.

  2. Oracles:

    TRYB has a Chainlink oracle that can be found here: Oracle

  3. Audits:

    BiLira’s TRYB is being audited twice a year by an independent auditor to ensure all TRYB’s are fully backed by TRY. See the latest audits here.

  4. Centralization vectors:

    TRYB is inherently centralized and issued by BiLira. Users who complete the KYC/AML process are allowed to issue and redeem TRYB for TRY 24/7.

  5. Market History:

    TRYB has been on blockchains since early 2019. It has been listed and used on numerous DEXs and CEXs since its launch. Until today more than 5 billion TRYB has been issued by BiLira to fulfill the user demand. See Coingecko history here.

    From August 2020 and up until 31 October 2022, TRYB was within +/-1% of the peg 93.14% of the time and within +/-2% 98.90% of the time.

    There are some market places where there is lack of liquidity which does not make a sufficient impact on the peg. Outliers on the TRYB/TRY peg distribution rarely occur on these marketplaces with relatively less volume. However, TRYB peg is guaranteed with the TRY held in the bank account of BiLira. Users can always redeem TRYB for TRY(1:1) via this link.

Pool: TRYB/USD(3CRV)

Gauge: Link

Voting:

For: Means that you support Curve to proceed with the above arrangement.

Against: Means you do not support Curve to proceed with the above arrangement.

Poll: Poll coming soon after temp check/discussion

7 Likes

Support the proposal - real world use case bringing volumes and users from legacy systems to DeFi and especially Curve. As well as leading to more locked CRV.

Great to see BiLira place high importance on security. Excited to see this!

6 Likes

Hello,

Oh nice. Have used BiLira in the past and can say it is one of the biggest centralised stablecoin projects out of Turkey that is onboarding loads to crypto finances. And given Turkish audience is a huge one happy to see Turkish projects bubbling up!

However wondering what’s the point of having a gauge in ETH while almost all the liquidity and trading action for this stablecoin is happening in AVAX? May have understood better if the motivations were clearer, however that part mostly seems like a copy paste from elsewhere, with no clear intentions/plans stated to have any meaningful liquidity or trading action on ETH or Curve.

If not AVAX, Polygon etc may also be a consideration given majority of the above mentioned Turkish community resides on those chains. And curve has gauges on those chains too! Feels like a waste to have it on Ethereum with the information provided thru this proposal. + the intentions of the BiLira team is unclear. Will be following the conversation but if above doesnt change i will sadly be voting “AGAINST”

5 Likes

Good to see other non USD type of stablecoins entering DeFi.

A few points:

  • MasterMinter role should have more signers on the msig. 1/2 is not the proper msig for that role
    [Context: MasterMinter can set the minter roles and allowance]

  • Please set the allowance of all minter accounts to a much lower amount, its currently at 375m LIRA on one and 400m on the other account, and 100m on the last. That is like 7-8x the current outstanding amount. All minter roles should ideally not be able to mint more than 10-40% of the current outstanding amount (per day). The lower the better. For big deposits the MasterMinter could step in - Otherwise it there is an obvious risk of a single EOA being able to rug LPs

  • I also agree with @AliG . It is to be expected that the majority of the volume will reside on matic and avax. The mainnet deployment is a little bit questionable (but that is not for me to judge)

I would suggest waiting with the gauge request and incentivizing the pool through the 3rd party tokens gauge. After a few weeks or months, we will see if incentivizing it via DAO emissions makes sense or not.

4 Likes

Thank you @Hatashi, @AliG and @knows for your comments.

It’s great to hear that the community is also interested in the addition of non-USD stablecoins.
To clarify some points made above:

  1. “Wondering what’s the point of having a gauge in ETH while almost all the liquidity and trading action for this stablecoin is happening in AVAX?”

    • Our main liquidity is on Ethereum,
    • Most centralized exchanges support TRYB on Ethereum
    • On-chain data shows that as of now our circulating supply is 47M on Ethereum (~%76 of our total supply).
    • We’ve received many requests from our community to have this pool on Ethereum
    • Also worth mentioning that this doesn’t mean we won’t be interested in opening pools on other chains in the future.
  2. MasterMinter role having more signers on the Multi-Sig and the allowance limit of the minter accounts is now changed accordingly.

We hope this helps clarify why we chose the Ethereum network and how we plan to expand this.

Please let us know if this is still not clear or with any other comment/suggestions you might have.

5 Likes

Thanks for your comments @knows good cover and to @BiLira for resolving them so quickly.

Re liquidity not sure where those figures came from @AliG maybe from CoinMarketCap where figures are reported incorrectly. Now that your rational is resolved, look forward to your vote switching.

With clearances on liquidity and security, suggest moving the proposal to an on-chain vote tomorrow providing there are no further comments.

4 Likes