SIP #16 - New Assets - DAI, FRAX, sUSD, LUSD

[YOU CAN CHOOSE MORE THAN ONE OPTION ON THIS PROPOSAL]

This proposal suggests Stargate should provide users a range of options for stablecoin bridging and greater asset diversity to bridge across the main different L1s and L2s. Fiat-collateralized / centralized stablecoins and algorithmic stablecoins present different use cases and have different risk characteristics. To provide greater diversification, FRAX, LUSD, sUSD, and DAI, should be added as new independent base assets to the Stargate Protocol, facilitating cross-chain transfers over Stargate.

The smart contract design and development required to support FRAX, LUSD, sUSD, and DAI transfers on Stargate should follow the below specifications:

• Initially, the following chains should be supported:
  • FRAX: Ethereum, Avalanche, Arbitrum and Optimism
  • LUSD: Ethereum and Optimism
  • sUSD: Ethereum and Optimism
  • DAI: Ethereum, Polygon and Optimism
• Only the liquidity pools on these chains will be connected to each other. More specifically, Stargate should not support cross-token transfers (i.e. FRAX <> USDC, sUSD <> USDT, etc) without further approval via governance.
• Emissions should be enabled and provided to incentive approximately $5M of TVL per asset should be targeted. Emissions should be set for two months then follow in line with current schedules for other stablepools.

Post launch, a range of transfer functionality to & from additional blockchains should be approved for new assets as demand grows (e.g, additional chains).