Add the litUSD/sfrxUSD Pool to the Gauge Controller

Proposals
1

Summary:

Add the litUSD/sfrxUSD pool on ETH mainnet to the Gauge Controller.

References & Useful Links

Project Description

  • About LitFinancial: LitFinancial (“Lit”) is a US-regulated FinTech mortgage broker/lender based in Troy, Michigan (NMLS #2553292). Founded in 2024, the company is led by mortgage and real estate veterans with more than two decades of industry experience. The Lit team has grown to over 100 members, including 65 licensed loan officers—with expanded operations across 35 US states. To view Lit’s disclosures, click here.

  • About litUSD: litUSD is an ERC-20 US Dollar stablecoin, issued by Brale. Designed to comply with new GENIUS Act regulations, litUSD is fully backed by a reserve of cash and cash equivalents. The token can be minted and redeemed 1:1 via USDC or bank transfers through a Brale business account. litUSD enables Lit to tokenize idle cash on its balance sheet into stablecoins for internal treasury management purposes, enhancing operational efficiency while reducing the cost of capital with yields generated from DeFi.

  • About Brale: Brale is a FinCEN-registered money services business based in Des Moines, Iowa (NMLS #2376957). Brale serves as the convertible virtual currency (CVC) administrator, i.e. issuer, of litUSD. Founded in 2022, the company provides a regulatory-compliant Stablecoin-as-a-Service platform for businesses to launch branded stablecoins in a matter of days—with full support for token issuance, funds processing, and KYC/AML screening. To view Brale’s terms and disclaimer, click here.

  • About Stably: Stably is a stablecoin development and advisory firm based in Seattle, Washington. The company specializes in helping institutions and enterprises create their own brand of digital money, tailored specifically for their business models. Stably was among the world’s earliest stablecoin issuers, having supported the launch of more than 16 stablecoin projects since its founding in 2018. To view Stably’s terms and disclaimer, click here.

Motivation:

litUSD is the world’s first US Dollar stablecoin designed to enhance treasury management and operational efficiency for a regulated mortgage lender. By tokenizing idle cash and providing liquidity to the Curve ecosystem, Lit can tap into DeFi-native yields from Curve to enhance its business model and reduce net cost of capital.

Specification:

  • Governance: The smart contracts and issuance/redemption process for litUSD is managed by Brale, the stablecoin’s regulated issuer and CVC administrator.

  • Oracles: N/A - 1 litUSD is always redeemable for 1 USD through Brale (minus processing fees)

  • Audits: To view Brale’s reserve attestations, click here.

  • Centralization Vectors: litUSD is a centralized stablecoin project that complies with GENIUS Act regulations, including BSA/AML compliance, reserve management and transparency practices.

  • Market History: litUSD was deployed on Ethereum on August 5, 2025. The token has no prior market history.

For:

  1. Enhances Curve liquidity – Adding the litUSD/sfrxUSD pool to the Gauge Controller expands stablecoin liquidity on Ethereum mainnet, supporting deeper markets and reduced slippage for traders.
  2. Novel real-world asset integration – litUSD is the first USD stablecoin issued for a regulated mortgage lender’s treasury management, creating a unique bridge between traditional finance and DeFi.
  3. Regulatory compliance – Fully backed by cash and cash equivalents, issued by a FinCEN-registered MSB (Brale), and compliant with GENIUS Act regulations, providing institutional-grade assurances to liquidity providers.
  4. Stable redemption mechanism – 1:1 redeemable for USD via USDC or bank transfer through Brale, ensuring peg stability and minimizing market risk.
  5. Potential long-term growth – As LitFinancial expands its mortgage and lending operations, litUSD’s on-chain circulation and utility could grow significantly, generating sustained trading volume and fees for Curve LPs.

Against:

  1. Centralization risk – litUSD is issued and managed by a single regulated entity (Brale), making it dependent on their operational integrity and regulatory standing.
  2. Limited market history – Deployed only in August 2025, litUSD has no established trading or liquidity track record, increasing uncertainty for LPs.
  3. Single-issuer exposure – Redemption and backing rely solely on Brale’s reserves and processes; any issuer failure could impair liquidity and peg stability.
  4. Narrow initial use case – Designed primarily for LitFinancial’s internal treasury management, meaning organic external adoption could be slow.
  5. Regulatory change exposure – Shifts in US stablecoin or GENIUS Act interpretations could impact issuance, redemption, or liquidity strategies.

Disclaimer

The information provided herein does not constitute investment advice. Digital assets—including stablecoins and deposits in decentralized protocols—carry inherent risks, including the potential loss of funds. Past performance is not indicative of future results. Users should conduct their own research and consult with a licensed professional before making any investment decisions.

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