[BIP-736] Enable GHO/PYUSD E-CLP Gauge Ethereum

PR with Payload

https://github.com/BalancerMaxis/multisig-ops/pull/1529

Summary

@TokenLogic proposes creating a new GHO/PYUSD Gauge.

GHO/pyUSD E-CLP - Range: -60bps to +15bps

The Aave Liquidity Committee (ALC), Trident Digital and Paxos intend to support this pool by coordinating deposits.

References/Useful links

GHO

Website Documentation Github Page Communities

PYUSD

Paypal Paxos Launch Blog Trident Digital

Protocol Description

GHO & Aave Protocol

The Aave Protocol is a decentralized liquidity platform operating across various EVM-compatible networks, including Optimism, Arbitrum, Avalanche, and Polygon, among others. With a current total value locked of approximately $31 billion, Aave remains a cornerstone of the DeFi ecosystem.

GHO, Aave’s native decentralized stablecoin, is fully collateralized, transparent, and designed to integrate seamlessly within the protocol, enhancing accessibility and utility across its ecosystem.

PYUSD & Trident

PayPal, a global leader in payments and remittance, has made a significant stride into the Web3 space with the launch of PYUSD, underscoring its commitment to expanding and enhancing its product offerings in the digital economy.

Introduced in August 2023, PYUSD is the result of a collaboration between PayPal and Paxos Trust Company, the firm behind successful stablecoins such as USDP and BUSD. Built on Paxos’ proven USDP framework, PYUSD benefits from the regulatory oversight of the New York State Department of Financial Services. Paxos, as a regulated trust, ensures full segregation and bankruptcy-remote protection for its reserves, which are held entirely in cash and U.S. Treasuries. All Paxos-issued coins, including PYUSD, maintain a 1:1 redemption guarantee.

Trident Digital, a seasoned provider of digital asset solutions, works closely with partners to drive stablecoin adoption across both crypto-native and traditional financial markets. Leveraging extensive experience and established relationships, Trident Digital has previously facilitated on-chain incentives for initiatives like the USDP-PSM.

While the PYUSD/GHO liquidity pool is currently unfunded, partners will inject $8 million in liquidity into the pool next week, marking a strong step toward fostering deeper market activity and adoption.

Motivation

This proposal aims to add one new veBAL gauge.

GHO/PYUSD E-CLP - Range: -60bps to 15bps

Specification

Governance:

AAVE, aAAVE, and stkAAVE function as the governance tokens for the Aave DAO, empowering holders to participate in the decision-making process. Token holders can cast their votes on proposals via Snapshot for off-chain signaling and through the Aave DAO’s on-chain governance portal for binding decisions.

Oracles:

• Chainlink GHO/USD data feed "0x3f12643D3f6f874d39C2a4c9f2Cd6f2DbAC877FC"
• Chainlink PYUSD/USD data feed "0x8f1dF6D7F2db73eECE86a18b4381F4707b918FB1"

Audits:

Aave v3

• ABDK
• OpenZeppelin
• Trail of Bits
• Peckshield
• SigmaPrime

GHO

• Certora
• Sigma Prime
• ABDK
• OpenZeppelin-v2
• OpenZeppelin-v1

PYUSD

• Trail of Bits
• Historical database of monthly attestations

On the off-chain side, Paxos collaborates with Withum, a nationally recognized audit firm, to deliver timely monthly attestations verifying the reserves backing PYUSD.

Centralization vectors

Aave Governance operates in a decentralized manner, with all changes undergoing a transparent and rigorously tested governance process.

In contrast, Paxos functions as a centralized entity similar to Circle, the issuer of USDC, with its governance framework dictated exclusively by the New York State Department of Financial Services.

Every PYUSD token is issued on a 1:1 basis, fully backed by reserves held in cash or U.S. Government Treasuries. These reserves are maintained in bankruptcy-remote accounts, ensuring that customer funds are safeguarded under New York banking laws and cannot be used to satisfy Paxos’ liabilities.

Regarding the E-CLP Pool type, the FTL Labs team’s multi-signature wallet currently retains specific administrative controls. These include the ability to pause the pool, adjust the swap fee, and configure the protocol fee.

Market History

• GHO
• PYUSD

Value

This pool is expected to drive meaningful TVL to Balancer. The assets within the pool are not yield bearing. However, the DAOs will generate revenue from receiving a portion of the swap fees.

Pool Details

• Link to the Pool: 0x8950E720eB51AF9709A86941345844134517bcF4
• Link to the Gauge: 0xAf1b4bfA0a69B9e669d925888b99741E15e37253

Kill Legacy PYUSD/GHO Gauge

We propose deprecating the existing gauge for the GHO/PYUSD pool, as both the market dynamics and the strength of GHO and PYUSD have significantly evolved. The pool’s calibration is no longer aligned with these changes, and maintaining it may create confusion for depositors. Disabling this outdated gauge will streamline user engagement and better reflect the current market landscape.

Here are the links to the pool and gauge to kill.

Disclosure

This proposal is the work of TokenLogic and karpatkey who are both Service Providers and delegates within the Aave Ecosystem.