Author: @apeir99n , @DeSnake

Summary

This proposal aims to request Gearbox DAO approval to deploy crvUSD pool and corresponding credit manager.

Motivation

crvUSD is one of the leading decentralized CDP stablecoins expressing steadily growing DeFi adoption. It is fully overcollateralized, having quality assets as collateral (check here). The stickiness of stablecoin investors’ preferences as a rationale for onboarding new tokens has been discussed in GIP-103 (https://snapshot.org/#/gearbox.eth/proposal/0xd34a15dbff6660c981184ae0fb83d4e094e3e9e50d7bfe39ab641c9e05642869) when GHO, USDT and DAI were onboarded to Gearbox. Such an approach has shown itself to be efficient and onboarding crvUSD is perceived to be a natural next step in this direction. Moreover, this pool will be mutually seeded by Gearbox and Curve community with GEAR and CRV incentives as outlined in GIP-122 (https://snapshot.org/#/gearbox.eth/proposal/0x531b373f1acd65fde928a6022ae7575478b43d91673bfa7353513c959f7575e4).

Technical specification

Only Tier 1 credit manager is proposed to be deployed. Later it will also be possible to add some curve/convex pools, however, given the almost zero utilization of them in the USDC pool, now we suggest to don’t complicate deployment. Parameters of the deployment will closely resemble those which are implemented for GHO token.

Liquidity sources

1. 6 million USDT can be sold into crvUSD with 0.48% price impact in Curve crvUSD/USDT pool https://curve.fi/#/ethereum/pools/factory-crvusd-1/
2. 7 million USDC can be sold into crvUSD with 0.41% price impact through Curve crvUSD/USDC pool https://curve.fi/#/ethereum/pools/factory-crvusd-0/
3. 7 million DAI can be sold into crvUSD with 0.41% price impact through Curve 3pool and pools mentioned above https://curve.fi/#/ethereum/pools/3pool/
4. 10 million USDe can be sold into crvUSD with 0.88% price impact through Curve USDe/crvUSD https://curve.fi/#/ethereum/pools/factory-stable-ng-11/
5. 7 million sUSDe can be sold into crvUSD using Curve via sUSDe - sDAI - DAI - USDC - crvUSD route. Note: sUSDe liquidity calculations in other pools rely on sUSDe - sDAI pool, but currently this pool allows selling 21 million sUSDe with 0.7% slippage, which is enough for cumulative exposure. https://curve.fi/#/ethereum/pools/factory-stable-ng-102/

Pool quotas

Asset	Proposed limit	Proposed minRate	Proposed maxRate
USDC	10000000	0.0004	0.12
USDT	10000000	0.0004	0.12
DAI	10000000	0.0004	0.12
sDAI	10000000	0.0005	0.15
USDe	5000000	0.0005	0.5
sUSDe	2000000	0.0005	0.5

Interest rate curve

It is proposed to use the same parameters as for USDC pool. Check numbers here

Tier 1 Credit Manager’s Parameters

Total debt limits: 10M crvUSD Credit Account’s Debt limit: 20k-1M crvUSD feeInterest: 2500 feeLiquidation: 150 liquidationPremium: 400 feeLiquidationExpired: 100 liquidationPremiumExpired: 200

LTs

Asset	Proposed LT
crvUSD	0.945
USDC	0.900
USDT	0.900
DAI	0.900
sDAI	0.900
USDe	0.900
sUSDe	0.900

Adapters

• Curve 3Crv
• Curve crvUSD/USDC
• Curve crvUSD/USDT
• Curve crvUSD/USDe
• Curve USDe/USDC
• Curve USDe/DAI
• Curve sDAI/sUSDe
• sDAI ERC4626 Vault
• sUSDe ERC4626 Vault

Farming incentives distribution

Due to technical restrictions it’s impossible to distribute 2 tokens through pool built-in farming contract. It’s proposed to distribute CRV via Merkle

Transaction log

Transaction log can be found here, md5 checksum is 0caf0c0ba13e34d0986409cc64455e74.

Voting

Simple Approve/Reject