Add USDp/frxUSD Pool on Sonic to Gauge Controller

[amirnader]

Summary:

Proposal to add a USDp/frxUSD Pool on the Sonic blockchain to the Gauge Controller, enabling CRV emissions and boosting liquidity on a capital-efficient pairing of Parallel and Frax stablecoins.

Reference/Useful Links:

• Pool:

  • Pool Link: https://www.curve.finance/dex/sonic/pools/factory-stable-ng-116/swap

  • Pool Contract Address: 0x5e0de78aa8f62cba470039ff545423f726c606c4

  • Child Gauge Contract Address: 0xf5a8d5c04d6b049a17a118503c7f3f4f39c20e47

  • Root Gauge Contract Address: 0x62378611c634724f740e5dc5e7c64b34e7d57423

• Parallel:

  • Website: https://parallel.best/

  • Documentation: https://docs.parallel.best/

  • Audits: https://docs.parallel.best/resources/security-audits

  • USDp Contract Address (Sonic): 0x08417cdb7F52a5021bB4eb6E0deAf3f295c3f182

• Frax:

  • Website: https://frax.com/

  • Documentation: https://docs.frax.com/

  • Audits: https://docs.frax.com/protocol/security/audit

  • frxUSD Contract Address (Sonic): 0x80eede496655fb9047dd39d9f418d5483ed600df

Protocols Description:

Parallel issues USDp, a crypto-redeemable stablecoin backed by yield generating correlated assets, with cross-chain support via LayerZero. The protocol works as a price-stability module where users mint/burn USDp at oracle price (not 1:1) against correlated assets (USD correlated).

Frax issues frxUSD, a fiat‑redeemable stablecoin fully backed by tokenized U.S. Treasury assets and fiat‑equivalents, with cross‑chain support via Frax Mesh Zero.

Motivation:

The USDp/frxUSD pairing enables synergy: combining a crypto‑native asset with a gold‑standard fiat-backed stablecoin, offering deeper liquidity and safe utility.

1. Improved liquidity for two highly capital-efficient stablecoins with complementary risk profiles.

2. CRV emissions encourage depth and lower slippage, improving swap efficiency.

3. Economic alignment: Parallel is going to incentivize the pool via votes incentives as well as Frax

4. Ecosystem growth: Supports broader adoption of both USDp and frxUSD across Curve’s Sonic deployments.

Specification:

• Governance:

  • Parallel: Governed by sPRL holders via offchain votes on Snapshot. Multisigs controlled by ⅝ DAO elected signers without cooldown.

  • Frax: Governed by veFRAX holders via votes on Snapshot.

• Oracles:

  • Parallel: Rely on Chainlink & Redstone price feeds for mint & burn

  • Frax: NA

• Audits:

  • Parallel: Audits by BailSec & Zenith, Partial Formal Verification by Certora. More here.

  • Frax: Audits by Zellic & Frax Security Cartel, Formal Verification by Certora. More here.

• Centralization Vectors:

  • Parallel: The DAO Multisig can upgrade all USDp related contracts. Part of the backing of USDp may be centralized assets, which is not the case right now.

  • Frax: The DAO Multisig can upgrade frxUSD related contracts. frxUSD is backed by centralized assets.