Add BOLD/USDC and BOLD/LUSD to the Gauge Controller (relaunch) & terminate legacy gauges

Gauge Proposals
1

Summary

BOLD relaunched a few days ago and has already reached over 30M supply. This proposal suggests enabling CRV rewards on its related gauge, and terminating the rewards for gauges of pools involving legacy_BOLD.

Note

This proposal concerns the new / relaunched BOLD (for incentives enablement) and the old/legacy BOLD (pre-relaunch) for incentives termination.

  • BOLD CA: 0x6440f144b7e50d6a8439336510312d2f54beb01d
  • legacy_BOLD CA: 0xb01dd87B29d187F3E3a4Bf6cdAebfb97F3D9aB98

References

Protocol Description

Liquity v2 is an immutable decentralized protocol that allows users to borrow against ETH, rETH, and wstETH on their terms as they decide the interest rate they pay (or can delegate its management). Loans are paid out in BOLD - a USD-pegged stablecoin and must maintain a minimum collateral ratio of only ~110% (on ETH).

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In addition to the collateral, the loans are secured by Stability Pools containing BOLD and ultimately by fellow borrowers collectively acting as guarantors of last resort. LQTY is the secondary token issued by Liquity. Staking it enables/ holders to accrue voting power that can be used to direct BOLD to the various Liquidity Initiatives.

Liquity as a protocol is non-custodial, immutable, and governance-free. No person or group controls the protocol — it is “set in stone” in smart contract code and can never be changed.

The introduction of interest rates, as well as the adjustment to the redemption logic helps BOLD better maintain its peg than LUSD:

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Motivation

Liquity is not new to Curve, and several active pools, such as LUSD/3crv or LUSD/crvUSD, exist. The Liquity Treasury owns 900k veCRV, which could be used to further support the new pool’s growth.

On top of the CRV emissions allocated to these pools, they benefit from an initial and sizable LUSD incentives budget for the first week. Once the first voting rounds conclude, BOLD can be directed to the respective gauges.

The two pools are also incentivized directly by the protocol, through the Protocol Incentivize Liquidity system: LQTY stakers can vote to allocate 25% of the total interests collected on the protocol to support liquidity initiatives. Currently, three initiatives are available and Curve receives most of the votes.

Specifications

  • BOLD/USDC Gauge Address: 0x07a01471fA544D9C6531B631E6A96A79a9AD05E9
  • BOLD/LUSD Gauge Address: 0xa37cdce0207127204682D3235EAd2c7a4C5D6C5C

Governance

BOLD has a minimized governance, as its only function is to allocate the BOLD collected as interest to Liquidity Initiatives. No protocol parameters can be changed.

Oracles

Bold uses Chainlink as a price source for supported collaterals. Additional mitigating measures are also implemented.

Audits

Reputable actors have conducted numerous audits:

Centralization Vectors

Bold code is immutable and cannot be modified. There are no pause or protocol freeze functions. BOLD (stablecoin) does not have a blacklist/whitelist nor freeze functionality. Liquity v2 has built-in shutdown thresholds to graciously handle events such as a severe drop or failure of collateral.

For more information on risks, please refer to the Risk Disclosure.

Market History

While BOLD was recently relaunched, Liquity v1 / LUSD has been running smoothly for over four years. Still, over 30M BOLD have already been minted, and over $22M TVL is in the two Curve pools.

Proposer’s Disclosure

I am TokenBrice from DeFiCollective, a nonprofit association created to support the most resilient DeFi protocols. We are the builders of DeFiScan, on which Curve will soon be featured. Although I no longer work with the Liquity team since October 2023 (Introducing my next step: contributing to a DeFi mastermind geared to support trustless and unstoppable DeFi: The DeFi Collective | TokenBrice - Blog), I am happy to lend a hand to help strengthen BOLD’s ecosystem.

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