Proposal to Add ynETHx/ETH Pool to Gauge Controller

Gauge Proposals
#1

Summary
This proposal seeks to add the ynETHx/ETH pool to the Gauge Controller on Curve Finance. By doing so, we aim to incentivize liquidity, enhance the pool’s depth, and leverage the Curve Finance ecosystem to support YieldNest’s broader vision. YieldNest will deploy multiple MAX LRTs positioning Curve as its primary liquidity hub.

References/Useful Links

Protocol Description:
YieldNest is a liquid restaking protocol that provides streamlined access to high-yield, risk-adjusted DeFi strategies through permissionless, curated LRTs across multiple restaking and DeFi protocols.

Motivation
The ynETHx/ETH pool requires incentivization to attract liquidity providers and deepen the pool’s liquidity. By adding this pool to the Curve Gauge Controller, liquidity providers will earn CRV rewards, creating an attractive incentive for participation. This will help establish a robust trading environment for the ynETHx/ETH pair and enhance Curve’s value proposition as a liquidity hub for restaking derivatives.

Specifications:

  1. Governance: Decentralization and community governance are important for YieldNest starting as an open finance protocol and plan to become a fully decentralized protocol. We are currently investigating Aragon OSx (Aragon V2) and plan to implement this once the protocol is in a more hardened and stable position. The YieldNest contracts are currently upgradeable using standard TransparentUpgradeableProxy and BeaconProxy contracts from the OpenZeppelin libraries. This is necessary given the project’s current stage and its dependency on Eigenlayer, which still makes breaking changes to the core protocol requiring logic upgrades. Admin and multisig addresses, along with their roles, are documented here and will be hardened over time.
  2. Oracles: YieldNest will leverage a Curve Oracle a crvUSD/ynETHx oracle. We are also hardening the price feeds by implementing a Redstone and Chainlink oracle to ensure accurate and reliable price feeds for its assets, mitigating risk and ensuring precise valuation.
  3. Audits: Links to audits: Audits | YieldNest Docs .
    Full initial system audit was conducted by ChainSecurity, with an additional audit from Zokyo.
  4. Centralization vectors: YieldNest’s centralization vectors include reliance on a centralized Oracle. Additionally, staking rewards management and validator operations (spinning up and exiting validators) are centralized in the early stages to ensure flexibility and mobility.
  5. Market History: The pool is freshly deployed and has some initial deposits. After the gauge and incentive injection, we will expect more liquidity to move in.