SGR 8: arUSD

Gauge Request Presentation:

• Targeted Pair: arUSD-LP
• IBT contract address: 0x07D1718fF05a8C53C8F05aDAEd57C0d672945f9a
• LP contract address: 0xBCE4E65b4A68Ac2095C7747992250D2075d82edc
• Current TVL on in the Pair’s liquidity: $10k Current TVL as IBT: $61M
• Twitter: x.com
• Discord: AladdinDAO
• Chain: Ethereum

Simple summary:

f(x) Protocol is a DeFi solution that addresses the need for a stable asset in the cryptocurrency space while mitigating centralization risks and capital efficiency issues. f(x) Protocol was conceived by Aladdin DAO; the US banking crisis in March 2023, combined with the depegging of USDC, highlighted the need for a new type of decentralized, highly scalable stable asset.

When f(x) Protocol first launched in August of 2023, f(x) introduced the DeFi world to something special: a powerful new DeFi primitive centered around a complimentary token pair. The f(x) pair, or “stable-leverage pair” primitive is based on a simple concept: split a yield-bearing token (called the base or reserve token) into two parts: a low-volatility (i.e. stable) part and a high volatility (i.e. “leveraged”) part, both tokenized. Stable tokens can be staked in a rebalancing pool to earn yield from the reserve tokens, while the high volatility tokens protect the peg simply by existing, themselves providing a remarkably simple, safe, and cheap way to take price leverage exposure to the base token.

rUSD is a stablecoin built by f(x) Protocol and backed by EtherFI’s eETH and Renzo’s reETH. When deposited in the eETH Stability Pool, rUSD earns yield in the form of eETH and FXN. On top of the yield, rUSD also earns 6X EtherFi and 2X Eigen Layer points, without market volatility exposure!

arUSD is the tokenized version of rUSD EtherFi Stability Pool vaults from Convex Finance. The ETH and FXN yield is swapped for more rUSD, which is reflected in the index growth.

This proposal aims to add a Gauge for the arUSD LP Spectra Pair. The pool for the arUSD LP pair is live since June 18, 2024.

We’d like to add this pool to Spectra’s gauge system to incentivize liquidity of our PT, as it would facilitate the creation of a liquid market between those who want to long the arUSD yield and those who want to lock in their yield.

Benefit of this integration for f(x) Protocol

• Additional yield opportunities for the community
• Increase the visibility of f(x)
• Increase the TVL of the liquidity pool

Benefit of this integration for Spectra

• Increase the tokenized TVL and the AMM TVL
• Diversify the yield possibilities
• Increase Spectra’s visibility
• bribes for APW token holders

Metrics:

arUSD TVL: $1.5M

Community stats:

Twitter: 6.8k followers Discord: 7.744 members