Proposal to add USR-USDC Pool to the Gauge Controller

Gauge Proposals
#1

Summary:

Resolv is a protocol issuing and maintaining USR, a stablecoin backed by delta-neutral Ether collateral pool.

To enable early incentives for secondary liquidity in USR, Resolv Labs, core contributors of the protocol, propose to add USR-USDC pool on Ethereum to the Gauge Controller.

References/Useful links:

Protocol Description:

Resolv is a protocol that maintains USR, a stablecoin fully backed by ETH and pegged to the US Dollar. The stablecoin’s delta-neutral design ensures price stability, and is backed by a tokenized insurance pool (RLP) to provide additional security and overcollateralization.

Key features:

  1. Stable and Transparent: USR is backed 100% by ETH collateral pool. Its price fluctuations are hedged using perpetual futures to ensure price stability. This approach creates a delta-neutral portfolio, maintaining a stable value pegged to the US Dollar.
  2. Insurance Layer: RLP acts as a protection mechanism, absorbing risks related to counterparty defaults and negative interest rates. This additional layer of security guarantees that USR remains overcollateralized, which enhances the stablecoin’s stability and reliability.
  3. Capital Efficiency: USR and RLP can be minted and redeemed on a 1:1 basis with liquid collateral, avoiding the inefficiencies associated with overcollateralization. This straightforward minting process allows users to efficiently utilize their assets without tying up excessive capital.
  4. Profitable and Secure: The protocol’s collateral pool generates profits through staking ETH and earning funding fees from futures positions. Additionally, Resolv employs robust risk management strategies, including diversifying exposure to trading venues and using off-exchange custody solutions, to ensure the security and profitability of its assets.
  5. Optimized for Investment: USR and RLP have different levels of expected yield and its volatility. The protocol’s separation of risks and returns allows investors to understand their investment profiles better, making USR a reliable choice for stable and predictable returns.

Motivation:
Resolv is looking to develop depth of secondary liquidity for USR, with Curve USR-USDC pool as its main venue. With more liquidity, Resolv will proceed with integrations with leverage DeFi protocols, enabling more use cases for USR and its purchase flow going through Curve.

Specifications:

  1. Governance: Governance token RSLV is expected to launch soon. Currently the protocol utilises a multi-signature wallet to deploy smart contracts and operate collateral pool. As the protocol moves into public phase, the contributors will shift protocol governance to public discussions and voting.
  2. Oracles: There is currently no on-chain oracle for USR. Oracle will be set up as soon as there are more reliable sources of on-chain liquidity.
  3. Audits: Resolv is audited by MixBytes and Pessimistic, links to audit reports can be found on the protocol documents page (Security | Resolv Docs)
  4. Centralization vectors: Collateral pool that backs Resolv tokens is operated by a centralized backend / Ops team. The signatories for the operations, both offchain and onchain, consist of executive team.
  5. Market History: Resolv has been live since April 2024 and has current TVL of approx $16mn. Average yield metrics since the start of the product: Native USR staking - 9.16% APR, RLP - 19.36% APR.

Voting Live:
https://dao.curve.fi/vote/ownership/778
https://crvhub.com/governance/ownership/778

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