SGR 47: aUSDC (Base)
title: [SGR] Create LP-sw-aUSDC Gauge on Base Network author: @TokenLogic created: 2025-01-06 Target Pair: https://app.spectra.finance/pools/base:0x90f41a30e16a02946cde1beb8214e7db647678a7 IBT Contract Address: 0x270188c2f683731a5383dcc1663ce9f3602b4f54 Twitter Link: https://x.com/aave Network: Base
Simple Summary
This publication proposes creating a gauge to incentivise LP-sw-aUSDC liquidity for aUSDC on the Base network.
Background
The Aave Protocol is a decentralized liquidity protocol deployed across many EVM compatible networks including but not limited to Ethereum, Base, Avalanche and Optimism. The Aave Protocol has over $34 Billion in TVL and $180M in annualised revenue.
Some useful links relating to GHO are provided below:
Motivation
The aUSDC token represents users’ USDC deposits on Aave v3. aUSDC holders earn the deposit rate for deploying liquidity into the Aave protocol. The aUSDC’ value is pegged to the value of USDC at a 1:1 ratio and can be safely stored, transferred or traded. All yield collected by the aUSDC reserve on Aave Protocol are distributed to aToken holders.
The aUSDC integration by Spectra enables PT Holders to gain access to fixed yield whilst YT holders receive yield from aUSDC. Traders can swap between the PT and YT as a way of speculating on the net change in yield:
- YT's yield is correlated to Aave's lending rates
Benefits of this Integration for Spectra
First Mover Advantage
This pool will be the first in the fixed-yield market built on a lending protocol on the Base network deployment.
Users will gain the ability to speculate on Aave's deposit rates throughout the market cycle.
Benefits of this Integration for Aave DAO
Potential veSPECTRA Bribe
To further encourage USDC deposits into Aave v3, the Aave DAO has the option to boost the LP-sw-aUSDC yield via participating in the incentive market for veSPECTRA votes to encourage users to deposit USDC into Aave v3 via Spectra.
Disclaimer
TokenLogic is compensated by the Aave DAO for the creation of this proposal.
Copyright
Copyright and related rights waived via CC0.
Off-Chain Vote
For
422.87K sdAPW100%
Against
0 sdAPW0%
Abstain
0 sdAPW0%
Timeline
Jan 28, 2025Proposal created
Jan 28, 2025Proposal vote started
Jan 30, 2025Proposal vote ended
Jan 30, 2025Proposal updated