HIP[29] - Adding Gauges for Opening Ceremony Round 3 Participants

Proposal ID: S1.5 Proposal ID: S1.6

Introduction

The goal with this proposal is to optimize cross-chain liquidity for popular DeFi tokens. Onboarding these gauges to the platform will help protocols to focus on their liquidity and pave the way to broader DeFi to take leverage of Hermes.

Due to the number of gauges being added and a maximum of 10 actions per onchain proposal, there needs to be two onchain proposals to add the gauges in this proposal.

All gauges should have a Minimum Width of 1.

Gauges Proposal S1.5:

• Maker DAO
  • mainnetDAI / arbDAI 0.01%
  • WuOPsDAI / arbDAI 0.05%
• Liquity
  • mainnet LUSD / arb LUSD 0.01%
  • WuOPs LUSD / arb LUSD 0.05%
• Abracadabra
  • mainnet MIM / arb MIM 0.01%
  • WuOPs MIM / arb MIM 0.05%
• Synthetix
  • mainnet sUSD / arb WETH 0.01%
  • op sUSD / arb sUSD 0.05%
• Aave
  • mainnet GHO / arb GHO 0.01%
• Silo
  • mainnet SILO / arb SILO 0.05%

Gauges Proposal S1.6:

• Frax Finance
  • mainnet FRAX / arb FRAX 0.01%
  • WuOPs FRAX / arb FRAX 0.05%
  • mainnet sfrxETH / arb sfrxETH 0.01%
  • WuOPs sfrxETH / arb sfrxETH 0.05%
• Rocket Pool
  • mainnet rETH / arb rETH 0.01%
  • WuOPs rETH / arb rETH 0.05%
• Stakewise
  • mainnet osETH / arb WETH 0.05%
• Stader
  • mainnet ETHX / arb WETH 0.05%

Strategic Alignment

These protocols are highly succesful but still suffer from liquidity fragmentation. Thanks to the our platform's novel liquidity rental solution, we are in a great position to help them address this.

Gauge performance analysis

There is currently no analysis ready to share on these gauges. Some gauges have already bridging data or existing volume (for new gauges), but these metrics are unlikely to provide an accurate forecast of future performance. Ultimately, the utility and adoption of each gauge will determine its performance and impact.

Market impact analysis

Incorporating these gauges is expected to foster new partnerships and attract a broader user base. Due to most of these gauges being from bridged tokens from different chains their expected volatility is very low.

Risk assessment

The gauges may not gain traction and due to their low volatility risk, this can result in low unuseful liquidity with very high APRs. The gauges should be removed if this is the case, so rewards can be directed to useful gauges.

Smart Contract Risk

These tokens are from different platforms, ranging from liquidity staking or restaking to stablecoins and DAO tokens. All of them require different levels of trust also due to the chains they are deployed on and other bridges they use.