Vote 019B: Whitelist TUSD-3CRV Convex strategy for use in Gro protocol

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

Original community forum post here: https://community.gro.xyz/t/rfc-expand-gro-protocol-s-strategy-whitelist/363

Background and summary

• Gro DAO whitelisted 6 strategies in May 2022 and another 4 strategies in July 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 019B: Whitelist TUSD-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.

More information on TUSD

• Created by TrustToken and backed 1:1 by fiat collateral
• Audited 24/7 by Armanino, an independent accounting advisory. Real-time monitoring can be found at https://real-time-attest.trustexplorer.io/truecurrencies
• Live for 50 months with a DeFi Safety score of 84% (for TrueFi) and a market cap of 884m on Ethereum and 1.2B across all chains respectively.
• Read more here: https://www.trusttoken.com/products
• Link to pool: https://curve.fi/tusd (pool depth: $83m as at 10th Aug)
• Current Convex yield 4.55% (as at 10th Aug)

What has changed since May (Vote 015H):

• Both the yield and liquidity of the TUSD Curve metapool has improved.
• TUSD remains pegged closely to $1 since May.
• The pool balance of TUSD has reversed since May, making TUSD the more sought-after stable in the pool.
• TUSD has increased its curve liquidity relative to its market capitalization.

Why TUSD is proposed for a second time

• We are bringing back this vote on TUSD because the price of TUSD has been stable and closely pegged at $1 in the curve metapool for the last 3 months.
• We regularly evaluate metastables and only include those that fit into our risk framework and are proved to have a stable mark-to-market price. For example, MIM has not been brought back for another vote since it remains very volatile.
• We do not intend to bring back the same candidate for a 3rd time in the foreseeable future.

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.