Proposal to add xpUSD/sUSDS to the Gauge Controller

Gauge Proposals
1

Summary:

Add the xpUSD/sUSDS pool on Ethereum to the Gauge Controller.

References/Useful links:

Protocol Description:

  • About The Growth Protocol (TGP): TGP is a purpose-built Avalanche L1 blockchain for digital marketing and growth applications in Web3 and gaming. By uniting smart goals, tokenized attribution and real-time settlements, TGP eliminates fraud, slashes customer-acquisition cost and guarantees that 100% of ad spend reaches real users. TGP is a collaboration between Nazara, India’s largest and only publicly listed gaming company with 10M+ MAU, and Lysto, the gaming world’s one-stop shop funded by leading VCs like Hashed, SquarePeg, Tiger Global, Distributed Global, Beenext, and prominent angels like Balaji Srinivasan, Sandeep Nailwal, Jaynti Kanani, Bobby Ong, and T.M. Lee.

  • About xpUSD: xpUSD is an ERC-20 US Dollar stablecoin issued by Brale. xpUSD is designed to comply with new GENIUS Act regulations, 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. xpUSD serves as the ecosystem’s programmable settlement and incentive layer, enabling seamless on-chain rewards, payments, and liquidity across all TGP-integrated applications.

  • 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 xpUSD. 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.

  • 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.

Motivation:

xpUSD is a compliant, USD-backed stablecoin built specifically for the gaming industry. In partnership with major game publishers, we’re building the dedicated stablecoin that high-volume gaming ecosystems deserve: one optimized for fast, low-cost payments, rewards, and interoperable cross-game economies. Backed by Nazara and powered by The Growth Protocol, xpUSD brings real, activity-driven demand (not mercenary TVL) into DeFi now extending that distribution to Ethereum where the deepest stablecoin liquidity and composability lives.

Curve Finance is selected as the strategic DEX because its veTokenomics model reliably creates long-term, capital-efficient incentives for stablecoin liquidity. This structure is especially aligned with xpUSD’s goal: deep, sticky liquidity that supports real usage (payments, rewards, treasury ops) rather than short-lived farming. Over time, the combination of Curve’s proven stablecoin market structure and xpUSD’s high-frequency gaming flows should reinforce each other lowering slippage, improving execution quality, and increasing onchain utility for both ecosystems.

USDS is Sky Protocol’s decentralized stablecoin (the DAI successor) and one of the largest decentralized stablecoins in DeFi. sUSDS (Saving USDS) is the widely adopted ERC-4626 vault version of USDS: a liquid, yield-bearing wrapper that earns the Sky Savings Rate while staying fully composable across DeFi (transfer, collateral, lending, etc.). Pairing xpUSD with sUSDS on Curve gives a productive stable leg, improving LP economics and making it easier to bootstrap deep, sticky liquidity on Ethereum.

Specifications:

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

  • Oracles: Not required. xpUSD maintains a direct 1 USD redemption mechanism, while sUSDS’s exchange rate is defined by its ERC-4626 vault’s internal mechanism.

  • Audits: Brale will engage a third-party firm to provide periodic attestations for xpUSD and maintain its reserve transparency.

  • Centralization Vectors: xpUSD is a centralized stablecoin project that’s designed to comply with GENIUS regulations, including BSA/AML compliance, reserve management, and transparency practices.

  • Market History: xpUSD was deployed on Ethereum on Jan 20, 2026. The token has no prior market history.