[HIP-36] - Approve Agio Protocol Gauge
Proposal ID: S1.10
Introduction:
This proposal seeks community approval to add a new gauge to Hermes, in collaboration with Agio Protocol;
- AUSD/USDC 0.3% (Minimum width: 30)
Liquidity for this gauge is already in place on UniV3 on Arbitrum:
Strategic Alignment
Agio Protocol offer CERC-20 tokens, the first tokenized options in crypto. AUSD is their flagship stablecoin, backed by and fed yield from their coverage pools and options strategies. The protocol is Arbitrum native and has integrated with payment provider CryptoCart, allowing it to be spent in the real world (https://x.com/CryptoCartCC/status/1873432545775505432).
Agio Protocol will engage in and support the co-marketing of this gauge. Additionally Agio will add bribes to their gauge, benefitting the overall health of our ecosystem and available incentives for Hermes voters.
Gauge performance analysis
Pool TVL: Currently $42,000
Market impact analysis
Hermes gauges will give optionality to Agio LPs, who can choose to stake their positions, exchanging fees for emissions of the Hermes tokens. This can offer boosted rewards, incentivising LPs to join the pool and thicken the depth of liquidity for AUSD.
Gauges also facilitate highly capital efficient deployment of liquidity mining incentives through bribes, as Agio would only be paying rewards to LPs in an active range around the current price, denominated in ticks. This can result in better APRs for LP's with smaller inputs of capital, and thus again, thicker liquidity. Hermes gauges further enable strategic deployments of incentives to target specific goals, such as price stability for AUSD.
Risk assessment
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Volatility of fee revenue over time - Volume and TVL metrics are relatively stable with occasional spikes. In most cases there should not be a problem regarding over / under paying for liquidity rental.
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Smart Contract Risk - As the liquidity comes from a 3rd party, Hermes cannot guarantee that there is no additional smart contract risk from integrating the AUSD tokens. Users should do their own due dilligence before interacting with these pools.
Ending note: This proposal created in accordance with the relevant guidelines for adding gauges as delineated here
Off-Chain Vote
Discussion
Timeline
Feb 24, 2025Proposal created
Feb 24, 2025Proposal vote started
Feb 27, 2025Proposal vote quorum reached
Feb 27, 2025Proposal vote ended