Proposal | Add VUSD/crvUSD and crvUSD/sVUSD pools on Ethereum to Gauge Controller

Gauge Proposals
1

Summary:

This proposal seeks to add two newly deployed Curve stable swap pools on the Ethereum mainnet to the Curve Gauge Controller:

  • 1. VUSD/crvUSD Stable Pool

  • Pool Address: 0xafba5800252530ce71b03ba2bca2dd5ae44a7f3d

  • Gauge Address: 0x737e7700e03a8c451c9b72103554a40760f1b57a

  • 2. crvUSD/sVUSD Stable Pool

  • Pool Address: 0x659b7b5dd7936bf2f2d198a87c1583049d1d91d3

  • Gauge Address: 0x543c88e9b7bd90a4c14a31bdbf41dd509ab666ed

The core objective is to deepen liquidity across the VETRO–Curve stablecoin stack, optimize routing pathways directly around crvUSD, and establish both VUSD and sVUSD as first‑class assets within the Curve ecosystem. By approving these gauges, Curve will serve as the primary routing and liquidity nexus between VETRO’s base settlement layer and its opt-in productivity layer.

References/Useful links:

On-Chain Parameter & Deployed Issue Registry:https://github.com/vetro-protocol/vetro-contracts/issues/111

Protocol Description:

  • VUSD: A dollar-referenced, over-collateralized protocol-generated settlement asset designed for institutional settlement, cross-chain transfers, and highly liquid collateral execution within DeFi. It is natively non-yield-bearing and backed by a diversified basket of tier-1 stable assets such as USDC and USDT.

  • sVUSD: An ERC-4626 compliant variable-rate staking vault layered completely over VUSD. Conceptually similar to stETH in the Ethereum ecosystem, sVUSD serves as a liquid, yield-bearing wrapper that allows holders to retain liquidity while automatically accumulating protocol returns . It accumulates yield generated by active treasury strategies, which is linearly streamed over time by a YieldDistributor contract to guarantee smooth price-per-share appreciation and entirely negate reward-sniping behaviors

  • Corresponding Protocol:

  • VETRO Protocol: A non-custodial balance sheet infrastructure protocol engineered around the absolute decoupling of asset stability and opt-in productivity layers. The protocol leverages a proprietary multi-agent autonomous framework (“Agentic Yield Engine”) comprising LLM-based protocol analysts, strategy forensics, and adversarial red-team code loops to identify, evaluate, and recommend optimal capital allocation across decentralized protocols . Recommendations are subject to human-in-the-loop review and cryptographic execution to ensure institutional safety standards.

  • Historic Prices:

  • Both VUSD and sVUSD are newly launched market primitives engineered to maintain firm structural parity around the standard 1 USD reference point. Within current early trading markets, the tokens track baseline parity smoothly with zero observed deviations.

Motivation:

  • Deepen Core crvUSD Routing Channels: Adding a VUSD/crvUSD gauge cements crvUSD as the central liquidity routing hub for VUSD, maximizing swap efficiency and routing connectivity between VUSD and the rest of Curve’s comprehensive stablecoin ecosystem.

  • On-Chain Peg Defense Realization: Curve functions as a cornerstone infrastructure layer for VETRO’s algorithmic peg-maintenance and Automated Monetary Operations (AMO) framework. Establishing deep liquidity inside Curve provides a robust foundation for the protocol to coordinate institutional order flow and protect the reference peg during volatile market dynamics.

  • Seamless Access to Token Productivity: The crvUSD/sVUSD liquidity pool completes the core ecosystem triangle, allowing market participants to seamlessly migrate between a decentralized native stablecoin (crvUSD) and an active institutional yield tier (sVUSD) with low slippage and minimized smart contract overhead.

Long-Term Capital Commitment: The VETRO protocol team is committed to seeding and sustaining both pools using protocol-owned liquidity. To maximize veCRV, Convex Finance, and StakeDAO participant alignment, the team intends to fund extra gauge rewards and maintain recurring bribe campaigns on voting markets to consistently build and support gauge weight .

Specifications:

Governance:

  • Protocol Governance Structure: Parameter controls, strategy allocation rules, and protocol parameter modifications are governed by veVETRO—a vote-escrowed token position deployed on the Hemi blockchain framework and coordinated cross-chain using LayerZero messaging architecture .

  • Governance Safeguards & Future Plans: To eliminate governance capture and keys-compromise threats, DEFAULT_ADMIN_ROLE changes carry a hardcoded 3-day transfer delay on core Treasury and YieldDistributor contracts via OpenZeppelin’s access control modules. Furthermore, a dedicated council of human Guardians maintains collective veto authority over passed governance decisions to freeze anomalous setups. Future roadmaps incorporate a migration to an expanded native CDP module featuring governance incentives and “stake-to-mint” paths .

Oracles:

  • Implementation & Dependencies: VETRO relies strictly on decentralized external price oracles via Chainlink feeds to verify collateral asset values. The core Treasury implements data freshness constraints against a hardcoded 24-hour staleness window; incoming oracle queries exceeding this window prompt automatic transaction reverts.

  • Price Deviation Guardrails: A structural 1% price deviation circuit breaker (100 BPS price tolerance) is continuously enforced. If any underlying reserve asset (such as USDC or USDT) deviates from par by more than 1%, minting and standard redemption routes for that collateral are halted automatically on the contract level to isolate systemic risk. Additionally, the Agentic Yield Engine serves as an off-chain recommendation oracle layer that records validated strategy data directly on the Hemi blockchain.

Audits:

  • Audit Coverage & Performance Metrics: VETRO’s Stage 1 core smart contract architectures (comprising VUSD, Treasury, Gateway, and sVUSD ERC-4626 vault code structures) successfully completed a comprehensive external security review executed by Quantstamp in February 2026.

  • Public Tracking Links: Verified audit report data is fully accessible via the official public repository: https://github.com/vetro-protocol/audit-reports/tree/main/Vetro_Protocol. Ongoing defensive sprint implementations include adding Echidna property testing for core protocol invariants, alongside a formal bug bounty program launched in collaboration with Immunefi concurrent with the V2 release.

Centralization vectors:

  • Operational Control Roles: Operational management tasks are designated to separated MAINTAINER_ROLE and KEEPER_ROLE slots assigned to protocol-operated hardware wallets. This lets the core team update fees, adjust peg bands, manage instant redemptions, and rebalance treasury capital within automated safety boundaries.

  • Unilateral Emergency Pausing: Designated human Guardians or Security Council members retain the power to unilaterally activate isolated time-sensitive circuit breakers—such as deploying a global bot kill-switch, enforcing a CDP budget freeze, or pausing linear reward drips—to secure capital before a full governance cycle can conclude.

  • Automated Bot Execution: Algorithmic scripts run via the UMM_ROLE to manage automated monetary operations and mint or burn VUSD within a strict on-chain maximum mint cap.

  • Liquidations (Decentralized): Borrowing architectures are deployed entirely through isolated Morpho Blue markets. Liquidations are handled permissionlessly by external MEV bot networks, ensuring the protocol team holds no monopoly over position liquidations.

  • AI Engine Isolation: The Agentic Yield Engine operates entirely as a “read-and-recommend” architecture. It lacks any direct transaction-signing capability; all suggested strategies require manual human verification and execution within on-chain smart contract guardrails .

Market History:

  • Asset Volatility Profile: Both VUSD and sVUSD are newly engineered architecture primitives launched in early 2026. No instances of price instability, tracking errors, or underlying collateral de-pegging have occurred.

Curve Pool Track Record: The targeted VUSD/crvUSD pool (0xafba5800252530ce71b03ba2bca2dd5ae44a7f3d) and crvUSD/sVUSD pool (0x659b7b5dd7936bf2f2d198a87c1583049d1d91d3) are newly deployed liquidity channels on Ethereum Mainnet. Total Value Locked (TVL) and transactional volumes are currently in their initial bootstrapping phase, supported directly by planned seed capital from the VETRO protocol treasury.

Disclaimer: The specifications, parameters, and timelines outlined in this proposal reflect the protocol’s architecture at the time of writing. As the protocol matures and responds to market dynamics, all architectural details and economic variables remain subject to future governance upgrades and structural modifications.