Add YUSD/frxUSD Pool on ETH mainnet to the Gauge Controller

Gauge Proposals
1

Summary:
Proposal to add a gauge for the YUSD/frxUSD pool on Ethereum Curve, enabling CRV emissions and boosting liquidity on a capital-efficient pairing of Aegis and Frax stablecoins.
References / Useful links:
• Protocol website – Aegis: https://aegis.im
• Proof of reserves – https://aegis.accountable.capital
• Docs – https://docs.aegis.im
• Frax documentation – https://docs.frax.com
• Curve Curve pool page: https://www.curve.finance/dex/ethereum/pools/factory-stable-ng-528/swap/
• Explorer links
YUSD:(https://etherscan.io/token/0x4274cD7277C7bb0806Bd5FE84b9aDAE466a8DA0a)
frxUSD: (https://etherscan.io/token/0xcacd6fd266af91b8aed52accc382b4e165586e29)

Protocol Description:

Aegis issues YUSD, a BTC-backed stablecoin using a delta-neutral hedge strategy via COIN‑M perpetual contracts. Collateral is held in regulated custodians with full real‑time Proof of Reserves visible via Accountable Data. Audits by Hacken and Sherlock have verified contract safety and system architecture.

Frax issues frxUSD, a fiat‑redeemable stablecoin fully backed by tokenized U.S. Treasury assets and fiat‑equivalents, with cross‑chain support via Fraxnet.
The YUSD/frxUSD pairing enables synergy: combining a crypto‑native yield-bearing asset with a gold‑standard fiat-backed stablecoin, offering deeper liquidity and safe utility.Motivation

  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: Users receive yield from Aegis while remaining fully hedged and transparent via Frax’s stable backing.

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

Specifications

  • Gauge to enable YUSD/frxUSD pool on Curve Factory (Stableswap‑NG)

  • Targeted pairing: YUSD + frxUSD

  • Gauge controller: Ethereum root gauge controller

  • Emission mechanism: CRV tokens allocated via gauge voting based on pool weight

Audits and Security

  • Aegis: Audits by Hacken and Sherlock covering minting, staking, bridge, and hedging contracts (https://docs.aegis.im/audits)

  • Proof of Reserves audited and verified via Accountable Data.

Timeframe and Metrics

  • Deployment window: Gauge activation within 1 week of proposal passing

  • Monitoring: TVL, swap volume, fee revenue, and gauge voting weight tracked daily

  • Feedback time: Initial review after four weeks, refinement based on performance

Risks and Mitigation

  • Impermanent loss: Both assets are dollar‑pegged and designed to remain narrow within stable range

  • Collateral transparency: YUSD transparency via Accountable data and frxUSD’s treasury-backed model reduce opacity risk

  • Protocol risk: Multi-layer audits and collateral verification instruments in place

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