Xeonus

[BIP-858] Enable ExtraFi-exUSDC-exUSR Gauge on Base

Voting ended 7 months agoSucceeded

PR with Payload

https://github.com/BalancerMaxis/multisig-ops/pull/2199

Summary

Proposal to enable gauge support for the new ExtraFi exUSDC/exUSR stable pool on Balancer v3 on Base.

References/Useful Links

Protocol Description

Extrafi XLend is a smart lending protocol, designed to improve the user experience and capital efficiency of DeFi lending. Built on the Superchain, XLend supports both Optimism and Base, and offers a range of lending features including flexible multi-account setups, bundled transactions, and enhanced risk management through real-time portfolio monitoring. XLend currently supports assets such as USDC, ETH, and USR, with both direct lending and Morpho-powered vaults. As part of the broader ExtraFi ecosystem, XLend is committed to building accessible, composable DeFi infrastructure with native support for Superchain ecosystems.

About USR

USR is the novel delta-neutral stablecoin fully backed by ETH and pegged to the US Dollar, issued by Resolv.

About exUSDC and exUSR

exUSDC and exUSR are both exToken issued by Extrafi XLend. They are interest-bearing tokens received by users when they supply assets to XLend. exTokens represent the user’s share of the liquidity pool and accrue interest in real-time.

Motivation

The ExtraFi-exUSDC-exUSR pool on Base brings together two interest-bearing stable assets in a highly efficient, low-volatility liquidity pool. By enabling gauge support for this pool, we aim to deepen stablecoin liquidity on Base while promoting broader composability between lending protocols and DEXs.

Gauge incentives will help attract sticky liquidity to the pool, benefiting both swappers and liquidity providers. Additionally, this pool serves as a key integration point between XLend’s lending markets and Resolv’s delta-neutral stablecoin USR. Supporting this pool aligns with the broader goal of strengthening the stablecoin ecosystem on Base and encouraging collaboration between emerging DeFi protocols.

Specifications

1. Governance

Extrafi XLend is governed by smart contracts, with protocol-level decisions including emissions, new asset onboarding, and pool configurations shaped through community governance via veEXTRA voting.

2. Oracles

Extrafi XLend utilizes Chainlink Oracle as real-time price feeds for calculating collateral value, debt value, and liquidation thresholds.

3. Audits

Extrafi XLend’s smart contracts have undergone multiple security audits to ensure the safety of user funds and protocol operations. Audit reports are publicly available in the Extrafi XLend Documentation.

4. Centralization Vectors

ExtraFi is a non-custodial protocol. All user funds are managed by immutable smart contracts, and the protocol does not rely on any off-chain execution or centralized intermediaries. The protocol’s upgrade and governance mechanisms are controlled by token-based voting.

5. Market History

The exUSDC-exUSR pool on Base is a newly deployed Balancer v3 pool. Both assets (exUSDC and exUSR) are interest-bearing stablecoins actively used in the XLend lending market. The pool is already live and accumulating volume, with additional rewards provided through $EXTRA emissions and Resolv Points.

Balancer ExtraFi-exUSDC-exUSR Pool

6. Value

This pool creates a capital-efficient market between two yield-bearing stablecoins. It deepens DeFi liquidity on Base, enhances USR utility across protocols, and allows users to earn lending yield, LP fees, and protocol incentives simultaneously. It also strengthens the synergy between lending and swapping in a composable DeFi stack, encouraging cross-protocol integrations.

Technical Specification

Enable Gauges

The Balancer Maxi LM Multisig 0xc38c5f97B34E175FFd35407fc91a937300E33860 will interact with the GaugeAdderv4 at 0x5DbAd78818D4c8958EfF2d5b95b28385A22113Cd and call the addGauge function with the following arguments:

Pool address: 0xe3a85e913f967406823cde9c390ae7bad9496367
Child gauge: 0x893035A8AA67e0989Ca433BC31d8024D65C32C10
Root gauge: 0xf81D677aBaC5ac56c7c6386F85f2720Badc6EB4C
GaugeType(string): Base