Summary:
Add the SQUID Recovery pool on Fraxtal (
0x11cb50654e2976a4bc03322b1cf8f0d780896c4f), a 3-asset frxETH / cvcrvUSD / SQUID stable-flavored pool, to the Curve Gauge Controller.The pool exists specifically as the market-side leg of Leviathan News’s lender-recovery framework (SDP-01) ratified two months ago by the SQUID DAO.
References/Useful links:
Pool (Curve UI): https://www.curve.finance/dex/fraxtal/pools/0x11cb50654e2976a4bc03322b1cf8f0d780896c4f/deposit
Website: https://leviathannews.xyz
Snapshot space:
leviathannews.eth— https://snapshot.org/#/leviathannews.ethGitHub: https://github.com/leviathan-news (backend, frontend, contracts)
Communities: Telegram main channel (@leviathan_news), 𝕏 (@leviathan_news)
Passed governance — recovery framework:
Structural precedent for this ask shape: Egorov’s CRV-long Llamalend Market Recovery pool and accompanying 𝕏 commentary
Protocol Description:
Leviathan News is a decentralized news aggregation platform for crypto / Web3, operating as a crowdsourced network where contributors earn $SQUID tokens for submitting, editing, curating, and distributing content. The community of 1771 contributors manages an aggregate of 2.26M impressions and 674K clicks per year, as of 5/15/2026. Monetization is nascent and not capable of supporting direct recovery at present.
$SQUID is the platform’s native utility/governance token, distributed monthly via Snapshot-allocated drops (1M SQUID/month) across DAO-approved contributor categories. SQUID currently lives on Fraxtal. Historic price source of highest liquidity is the Curve SQUID/wfrxETH pool on Fraxtal (
0x277f...3f04), and plans are underway to relaunch on mainnet. As a cryptocurrency token, SQUID is volatile: a sharp drawdown in late 2025 / early 2026 (described below) is the direct cause of the lender losses this proposal addresses.The Recovery pool is intentionally structured as ~⅓ frxETH / ~⅓ cvcrvUSD (lending token) / ~⅓ SQUID — i.e., ~67% non-SQUID by reserves. It is configured as a TriCrypto-NG pool. The intent is to give lenders harmed in the 2025 SQUID/wfrxETH Llamalend market the opportunity to exit at market rate.
Motivation:
The SQUID DAO issued its response to bad debt in the Llama Lend in the form of SDP-01, which mandated the creation and stewardship of the SQUID-recovery pool. The DAO has bootstrapped the pool with two sources:
- Half of protocol revenues, which usually works out to single-sided deposits of <0.01 WETH per week on average, presently insufficient to bootstrap the pool to size.
- A variable portion of monthly SQUID emissions is earmarked to incentives, at the current pool size this delivers an APR of 52%
With the protocol resources strained, we seek gauge eligibility to unlock additional opportunities for members of the Curve DAO community to support recovery by optionally apportioning a portion of CRV emissions to support recovery and a path for lenders.
Specifications:
Please answer in a short and clear manner.
Governance:
Leviathan News is governed by the SQUID DAO via Snapshot at leviathannews.eth. Major decisions (treasury allocations, framework approvals like SDP-01, monthly drop manifest, pool deprecations) are settled via weighted Snapshot votes.
Day-to-day operations (content moderation, editor onboarding, dispatch) are delegated to a fleet of human editors, usually via interaction with our Telegram bot. Onchain operations are managed by a multisig.
As of Q2 2026, members of the DAO have been commenting publicly about deprecating SQUID on Fraxtal and launching primary operations on mainnet, although no specific public plan has yet been put forward.
Oracles: The Recovery pool itself does not rely on any external oracle. As a TriCrypto-NG pool, the pool itself contains a built-in oracle.
Audits: Leviathan News uses Firepan to provide continuous monitoring of all smart contracts and future deployments. On May 9, Leviathan recently conducted a thorough Pentest of its website courtesy of zkpnr. Leviathan regularly publishes open source code for both web2 and web3 projects that may benefit the community, visible at: Leviathan News · GitHub
Centralization vectors: At present, the proposal author controls >90% of liquidity to the SQUID-recovery pool. Additional incentives could help to reduce centralization. The presence on the Fraxtal L2 presents a potential but accepted centralization risk.
The SQUID DAO itself is well decentralized, with many individuals required to achieve a majority. Most of the key infrastructure survives a “hit by a bus” test, in which operations can proceed (or resume) in most cases in the event anything happened to a key contributor.
Market History: The SQUID-Recovery pool has been relatively inactive since its launch in Q1 2026, with just ~$1.32K TVL and ~$0.25 in daily volume. The ETH in the pool is a known asset. The SQUID-long lending token has no fungible history prior to the launch of this pool. The SQUID token is volatile, like all cryptocurrency tokens. 1 SQUID generally trades for 0.000001 ETH, although at peak hysteria it traded as high as .000015 ETH.