Proposal to Add VSP/WETH Pool on Ethereum to the Gauge Controller

Gauge Proposals
1

Summary:

Proposal to add a crvUSD/VUSD Pool on the Ethereum blockchain to the Gauge Controller, enabling users to assign gauge weight and mint CRV.

References/Useful links:

Website
Documentation
Github Page
Discord
App

Protocol Description:

Vesper is a multi-chain decentralized yield aggregator, enabling users to earn consistent, secure APY on their various bluechip crypto assets. Vesper initially launched in Q1 2021 and experienced the ups ($2bn TVL in 2021) and downs of DeFi summer.

Vesper Finance has been a Curve ecosystem participant since day 1 with single-sided yield bearing pools built on strategies including Curve LP positions.

Today, the protocol maintains a strategic partnership with Metronome (msUSD, msETH) which enables looping access to Vesper vaults via those Metronome assets. Much of Vesper’s TVL is attributed to users looping through Metronome or collateralizing their positions on other lending venues like Alchemix.

Vesper plans to incentivize this pool on an ongoing basis and build a governance position to direct incentives long-term.

Motivation:

Vesper DAO recently pushed governance to establish a strategic position in the Curve ecosystem. Vesper is growing protocol owned liquidity on VSP/WETH as well as establishing Curve voting power via buying and staking CVX.

Vesper intends to incentivize curve voter markets each week to maintain LP incentives on VSP. There is no strong source of onchain VSP liquidity, and the ecosystem intends to make Curve that flagship trading venue.

Specifications:

  1. Governance: VSP token is fully diluted and fully circulating. Token holders can stake VSP to receive esVSP (votelock NFT schema). Onchain governance has the ability to mint VSP beyond the fully diluted 10 million supply. Some Vesper pools are also managed by onchain governance, where the addition of a new strategy or removal of a strategy must be done via onchain voting. Some pools are still governed by the DAO Treasury Multisig. Relevant protocol wallets can be found here.

  2. Oracles: Not applicable

  3. Audits: All unique yield strategy schema are audited, as well as token infrastructure contracts. Find all audits here.

  4. Centralization vectors: Most Vesper users deposit/withdraw from the official app, which is centralized. However, there are alternative ways to access Vesper pools outside of the official app (3rd party integrations, generalized defi applications).

  5. Market History: VSP is a governance token, so depeg information is not applicable. The trajectory of the token matches many others from DeFi summer. It had an all-time high of $80. It trades around $0.20 today.