Xeonus

[BIP-841] Enable iUSD/aGHO Gauge on Balancer v3 Ethereum

Voting ended 8 months agoSucceeded

PR with Payload

https://github.com/BalancerMaxis/multisig-ops/pull/2122

Summary

Proposal to add gauge support for the new iUSD/aGHO Composable Stable pool on Balancer v3 for Ethereum.

References/Useful Links

Protocol Description

infiniFi is a decentralized fractional reserve staking system designed to improve financial stability and capital efficiency while aligning depositor incentives. It allows users to mint iUSD, a high-yield stablecoin backed by liquid and locked collateral. Depositors can choose lock durations to earn higher returns, enabling automated maturity laddering of reserves and reducing duration mismatch risks—challenges inherent in traditional banking.

Key features of iUSD include:

Fractional Reserve Design: Achieves higher yield across depositor segments by combining liquid and locked capital into duration-matched strategies.
Depositor-Driven Allocation: Users determine how their funds are deployed, based on preferred liquidity timelines.
Yield Optimization: Liquid deposits earn top DeFi rates, while locked positions gain amplified returns.
Blockchain Transparency: Fully on-chain and governed by smart contracts, ensuring transparency and trustlessness.

aGHO, on the other side of the pair, represents GHO deposited into Aave’s yield-bearing Prime instance. It combines the stability and overcollateralization of GHO with passive native yield from Aave.

Motivation

Introducing a gauge for the iUSD/aGHO Composable Stable pool enhances liquidity and accessibility between two distinct yet complementary stablecoins:

Yield Synergy: aGHO is yield-bearing by design while iUSD is the vanilla stablecoin of infinifi ecosystem, it earns points rather than being yield bearing. This pool offers users a yield-maximized stable pair, ideal for liquidity providers and DAOs seeking low-risk yield.
Deepens iUSD Utility: Adding GHO as a trading pair on Balancer offers DeFi-native arbitrage and integration potential.
Supports iUSD Distribution: Balancer’s infrastructure offers a trusted, programmable venue to introduce iUSD to more DeFi participants.
Composable Collateral: A deep and efficient pool can support integrations with leverage protocols, yield vaults, and synthetic markets.

A gauge will accelerate TVL growth and market usage, establishing this pool as the primary DeFi liquidity venue for iUSD.

Specifications

1. Governance

infiniFi is governed by smart contracts with a future pathway toward DAO-managed control over key parameters and reserve deployment logic. Depositors drive asset allocation through bonding preferences, creating transparent and market-driven governance outcomes.

2. Oracles

iUSD leverages on-chain DeFi markets such as Aave and Compound for asset yields. Pricing for redemptions and collateral values is computed via verifiable on-chain mechanisms. The system currently does not rely on off-chain oracles but may integrate oracle feeds (e.g., Chainlink) for advanced features.

3. Audits

Link to the audits here

4. Centralization Vectors

infiniFi is non-custodial and fully on-chain. All deposits, locks, and allocations are governed by smart contracts. There is no reliance on centralized intermediaries or off-chain execution, minimizing centralization risks.

5. Market History

This is a new Balancer v3 pool launching to support the growth of iUSD and aGHO liquidity. iUSD is actively used within the infiniFi protocol, and this Balancer integration represents the first major external liquidity venue for the asset. aGHO is already in use within Aave and Balancer GHO initiatives.

Balancer Pool Link (To be added upon deployment)

6. Value

This pool will serve as the primary DeFi liquidity hub for iUSD while enhancing GHO ecosystem stability and utility. The pairing supports passive yield strategies, arbitrage, and future integrations across lending protocols and structured product layers.

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: 0x733F2D3f66d3F41bde65d95321A19a1e55BB5470
Gauge(address): 0xac681deb529b49b5a563fbf0dcccb95d5bb7cdb0
GaugeType(string): Ethereum