Proposal to add USV/FraxBP to the Gauge Controller

Gauge Proposal Template:

Summary:

Phuture has deployed a pool for USV/FRAXBP to instantiate USV’s first decentralised exchange listing. We intend for this to be the canonical liquidity venue for USV as we grow our exposure to the Curve ecosystem.

This proposal is seeking the approval of a gauge for this pool in order to incentivise and grow both the USV and FRAXBP liquidity on Curve.

Describe what this proposal is about

References/Useful links:

Link to:
• Website: https://phuture.finance
• Documentation: https://docs.phuture.finance/introduction/master
• Github Page: Phuture · GitHub
• Twitter: https://twitter.com/phuture_finance
• Defillama: Phuture: TVL and Stats - DefiLlama

Protocol Description:

Phuture is an index and structured product provider operating across Ethereum and Avalanche. Our vision is to provide best-in-class products for new and experienced investors.

USV or USDC Savings Vault is a USDC bond ETF built using Notional’s fixed rate lending market. It provides the holder with yield on their USDC via the investment into the underlying bonds the vault holds.

USV is ERC-4626 vault that holds and manages 3 and 6 month Notional bonds. It’s initial price was $1 and it has traded as low as 0.995 and as high as 1.001 which can be evidenced here: Phuture - Crypto Index Platform

Describe the proposed asset(s), the corresponding protocol(s), and historic prices of the token (price must come from the source of highest liquidity).

Motivation:
Phuture has seeded the initial liquidity for the pool and would like to join the FRAXBP network of pools in order to grow the volume and TVL of the pool through the additional incentives offered via the FRAXBP programme. We envisage this to be an attractive offering given the fact that USV is already earning at the time of writing 3.33% natively with the addition of CRV incentives adding to this.

Explain why this pool needs incentivization

Specifications:

Please answer in a short and clear manner.

  1. 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.

USV is owned by the Phuture multi sig: 0x6575A93aBdFf85e5A6b97c2DB2b83bCEbc3574eC which has the ability to upgrade the USV contracts should it be required. There are no plans to change the governance structure.

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

USV values the bonds that it holds via the exposed Notional TWAP oracles. More info can be found here: Interest Rate Oracles - Notional V2

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

Please find a list of audits executed on the protocol here:

  1. 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.

USV has no centralisation vectors.

  1. 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?

USV is not a stable coin but the fluctuations in its price due to underling bond movements have been very slight with a max downside movement of 50 bips from its initial price. USV/FRAXBP pool has been created recently and seeded with circa $200k. In addition, since USV has launched it has amassed close to $400k in tvl.

To summarise:

• Phuture is applying for a gauge to be added to the USV/FRAXBP pool
• This will be the canonical pool for USV and is part of the FRAXBP network of pools.
• USV is the first bond product of its kind and will provide liquidity providers with a native yield atop of the yield gained from incentives
• The creation of this pool will generate additional volume through the arbitrage of exchange price vs NAV price which was previously not possible.

1 Like

Happy to answer any questions on the above proposal and understand next steps.

It’s a 2/3 Multi sig and the owners seem to be connected to Phuture. Who are they and how are they connected with Phuture?

Thanks for your comment. The multi-sig is operated by the three co-founders of the business including myself.

Co-founders are listed here: