[BIP-833] USP/aUSDC Gauge proposal

PR with Payload

https://github.com/BalancerMaxis/multisig-ops/pull/2053

Summary

A proposal to add gauge support for the new Pareto USP-aUSDC Composable Stable pool on Balancer v3 on Ethereum.

References/Useful links:

• Website: pareto.credit
• Documentation: docs.pareto.credit
• GitHub page: github.com/pareto-credit/USP, github.com/pareto-credit, github.com/Idle-Labs
• Governance: gov.pareto.credit

Protocol Description

USP is a synthetic dollar protocol backed by real-world institutional-grade private credit, alongside a globally accessible savings asset, sUSP.

Users can mint USP (ERC-20) by depositing stablecoins, e.g. USDC, USDS, into the ParetoDollar contract. The deposited assets are deployed into Credit Vaults, which lend funds to institutional players executing yield-generating strategies. The resulting yield is distributed to USP stakers (sUSP) via the ParetoDollarStaking contract.

USP offers the following benefits:

• Composable: USP is a transferable, permissionless asset that integrates across DeFi and CeFi, streamlining capital deployment, risk management, and settlements
• Capital efficient: Minted 1:1 against major stablecoins, USP is deployed into a diversified portfolio of liquid, short- and long-term credit, balancing liquidity and yield
• Protected: USP holds senior priority in the capital stack and will be additionally shielded by a peg stability reserve to provide a buffer against defaults and market stress

For more details, refer to the Pareto’s USP docs.

Motivation

The USP-aUSDC Boosted Pool on Balancer is intended to become the core liquidity hub for USP on Ethereum.

Gauge activation would allow the protocol to:

• Increase Liquidity: Incentivize deeper stablecoin liquidity to support efficient swaps.
• Enhance Capital Efficiency: Leverage the boosted pool structure to maximize utilization while minimizing slippage.

Pareto will incentivize liquidity provision and swap activity through a dedicated points multiplier for the USP-aUSDC pool as part of Season 2 of its Efficiency Campaign.

Specifications

1. Governance: Pareto team retains admin control (with a 1-day timelock for upgrades) on USP core functions with the plan to decentralize the token governance by establishing a board responsible for risk management, fund allocation, and other key operational activities.

2. Oracles: USP does not rely on any oracle. The token is minted 1:1 to its underlying asset, USDC.Preformatted text

3. Audits: USP’s smart contracts have undergone multiple audits to ensure security and reliability. Audit reports are available in Pareto’s docs.

4. Centralization vectors: Currently, there is no governance. After PAR TGE, a DAO will be established.

5. Market History: USP has been recently launched and did not face any depeg event. The pool address is 0x114907c2a07978c38ebb9f9f6a5261a846b79521. The Gauge address is 0xA67fBb1E751E0C6ECd9a213c960A11fd4b3B691D

6. Value: The Balancer’s USP-aUSDC pool is intended to become the primary liquidity hub for the token on Ethereum.

Technical Specification

The Balancer Maxi LM Multisig 0xc38c5f97B34E175FFd35407fc91a937300E33860 will interact with the GaugeAdderv4 at 0x5DbAd78818D4c8958EfF2d5b95b28385A22113Cd and call the addGauge function with the following arguments: gauge(address):0xA67fBb1E751E0C6ECd9a213c960A11fd4b3B691D gaugeType(string): Ethereum