Vote 018A: Whitelist GUSD-3CRV Convex strategy for use in Gro protocol

TLDR: This proposal sets out selected yield strategies for whitelist and approval for use in Gro protocol

Original community forum post here: https://community.gro.xyz/t/vote-18-gro-protocol-strategy-selection-whitelist-2/361

Background and summary

• Gro DAO whitelisted 6 strategies in May 2022 for Gro protocol to use
• Proposal for the DAO to whitelist further strategies
• Protocol funds will continue to be allocated in accordance with the existing framework of (1) pool depth and (2) yield, as set out in the Gro protocol docs

Vote 018A: Whitelist GUSD-3CRV Convex strategy for use in Gro protocol

Gro protocol has been primarily designed to use Convex pool strategies following Gro DAO Vote 009. All these strategies pair 3CRV with a different stablecoin, meaning that a strategy has full exposure to each of the 3CRV assets plus whichever stablecoin is also in the pool.

Proposal that Gro DAO approves GUSD-3CRV Convex strategy for use in Gro protocol with (1) a maximum Vault exposure of 50% and (2) a stop-loss in place in case of significant de-peg

More information on GUSD

• Created by Gemini and backed 1:1 with real-world USD
• Gemini is a U.S. company regulated as a limited purpose trust company by the New York State Department of Financial Services.
• Audits of the GUSD reserve are published monthly by an independent registered accounting firm, BPM LLP
• The Ethereum smart contract has been audited by Trail of Bits, a leading information security research and development firm
• There is currently 166m GUSD in circulation (as at 25th July)
• GUSD has been live for 47 months
• Link to pool: Curve.fi (pool depth: $28m as at 25th July)
• Current Convex yield 5.06% (as at 25th July)

Voting process

FOR: Approve the strategy for whitelist on Gro protocol AGAINST: Do not approve the strategy for whitelist on Gro protocol ABSTAIN: No opinion on approving this strategy for whitelist on Gro protocol

Next steps

This vote will run for 3 days.

Each strategy that receives majority approval (ignoring abstain votes) will be added to the protocol whitelist, meaning there is DAO authority to allocate protocol funds (within the maximum Vault exposures).

Future strategies can be suggested and voted on by the DAO, and at any time community members can also propose a removal of a strategy from the current whitelist.