Gauge Proposal Template:
Summary:
This proposal aims to approve the creation of a gauges for baoUSD/3CRV
If the gauges are added, the Bao DAO will provide 300,000 BAO weekly as voting incentives for the first 8 weeks.
In addition to a gauge on the balancer platform, the Bao community incentivizes liquidity via a gauge on its own platform, helping to deepen liquidity.
References/Useful links:
Link to:
Website: https://app.bao.finance/
Documentation: Bao Finance - Bao Finance Docs
Github Page• Bao.Finance · GitHub
Communities• Bao Finance, https://twitter.com/BaoCommunity
Protocol Description:
Bao Finance is a synthetics protocol whose mission is to create synthetic assets and markets for any data. baoUSD is the first synthetic released and will become a foundation for other synthetics to be built on top of.
baoUSD is a fully backed stablecoin built with decentralization and security as primary focus points. It can be minted by opening a debt position with ETH, or bSTBL (a yield-bearing basket of “safe” stablecoins), or by using the PSM to mint with DAI. The total value of baoUSD minted has been steadily growing over the last couple of months.
baoUSD has remained pegged since its inception and has various robust stability mechanisms. Currently the only exchange with baoUSD liquidity is curve. The baoUSD/3crv pool can be found here: https://curve.fi/#/ethereum/pools/factory-v2-84/swap
Motivation:
We would like Curve to become a key marketplace for our synthetics. Integrations outside of our own liquidity gauges are key to the sustainability of our synthetics and we believe that the curve community will benefit from their growing adoption through trading fees, boosts to liquidity on any pools that pair with a Bao synthetic via gauges on the Bao platform and bribes from the Bao community to help deepen liquidity.
Specifications:
- Governance: Currently baoUSD is governed by the BAO community. Actions voted on are carried out by the community “council of guardians” via its 4/7 multi-sig. This multisig has control over various baoUSD parameters like its mint limit and collaterals. We plan on using governor bravo or similar in the future to improve decentralization.
- Oracles: Chainlink oracles are used to find collateral prices.
- Audits: Bao re-uses battle-tested compound, inverse, and curve code with some changes and is in the process of auditing
- Centralization vectors: The most centralized part of the project is the council of guardians 4/7 multisig. Bao strives to be as decentralized as possible.
- Market History:
****baoUSD has been closely pegged since its inception and has robust, battle-tested mechanisms to help it stay pegged.- Value:
baoUSD is in its infancy, but curve has an opportunity to become the primary source of liquidity for it and future synthetics. The Bao protocol gained a lot of exposure during 2021, attracting up to $200m in liquidity with only a vision and now the community lead project is launching its first products.