Balancer

PR with Payload

https://github.com/BalancerMaxis/multisig-ops/pull/2176

Summary

Proposal to add gauge support for the new USD.AI/aGHO Composable Stable pool on Balancer v3 for Arbitrum.

References/Useful Links

• USD.AI Website
• USD.AI Documentation
• USD.AI GitHub
• USD.AI Twitter
• DefiLlama Protocol Overview

Protocol Description

USD.AI is an on-chain, yield-bearing synthetic dollar protocol designed to deliver RWA yield in a decentralized and permissionless manner. USD.AI is backed by T-bills from M^0 and from loans issued against hardware (at first it will be GPUs).

The protocol’s architecture combines delta-neutral strategies with on-chain Treasury Bill exposure, creating a synthetic dollar that maintains price stability while producing sustainable yield. This dual approach ensures that USD.AI remains pegged to $1 through arbitrage mechanisms and dynamic rebalancing, even under volatile market conditions.

USD.AI is fully non-custodial and transparent, leveraging smart contracts to manage collateral, yield generation, and redemptions. Additionally, it plans to integrate cross-chain capabilities using LayerZero technology, enabling seamless liquidity and composability across multiple blockchain ecosystems.

For more details, see the USD.AI Documentation.

Motivation

Deploying a Balancer v3 Aave Boosted pool for USD.AI/aGHO will significantly enhance capital efficiency and yield opportunities for liquidity providers. The integration of aGHO, which earns native yield from Aave, reduces the overall incentive cost and offers a stacked yield opportunity when paired with USD.AI.

The new USD.AI/aGHO pool will serve as the primary liquidity venue for USD.AI, promoting integrations with DeFi protocols that utilize aGHO. The higher amplification factor in the Composable Stable pool is expected to improve liquidity depth and trading efficiency, benefiting users seeking both yield and low-slippage stable swaps.

A gauge is essential to bootstrap TVL, strengthen liquidity depth, and support broader DeFi integrations for USD.AI, solidifying its role within the evolving RWA-backed stablecoin landscape.

Specifications

1. Governance

USD.AI operates within the control of the core team at the moment as there is no governance token issued yet.

2. Oracles

USD.AI utilizes the oracle

3. Audits

USD.AI’s smart contracts have undergone multiple security audits to ensure the safety of user funds and protocol operations. Audit reports are publicly available in the USD.AI Documentation.

4. Centralization Vectors

USD.AI is designed to minimize centralization risks. The protocol is fully on-chain and non-custodial, and collateral management occurs transparently via smart contracts. Governance mechanisms and decentralized oracles further reduce the risk of central points of failure.

5. Market History

USD.AI is a newer protocol, with initial traction on Arbitrum and a TVL of approximately $30 million. Integrating USD.AI into Balancer v3 on Arbitrum represents an opportunity to expand its liquidity footprint and establish a prominent position as an RWA-backed stablecoin.

6. Value

The USD.AI/aGHO pool will serve as the main liquidity hub for USD.AI on arbitrum.

Specification

Enable Gauges

The Balancer Maxi LM Multisig 0xc38c5f97B34E175FFd35407fc91a937300E33860 will interact with the GaugeAdderv4 at 0x5DbAd78818D4c8958EfF2d5b95b28385A22113Cd and call the addGauge function with the following arguments:

• Pool address: 0xA8b7683936DfF9E2F35404e61A875A76676a07B6
• Child gauge: 0x82FAeb834FDc9F2E3dde36C7d29cEAa2bBE24166
• Root gauge: 0xDB7981655Db66Aa9BD489c76323B88bD1545C7aB
• GaugeType(string): Arbitrum