Curve Finance

Summary:

Proposal to add the XSTUSD/3CRV pool to the Gauge controller to enable users to assign a gauge weight and mint CRV.

Describe what this proposal is about

This proposal is aimed at adding XSTUSD-3CRV to the gauge controller.

This way XSTUSD, the algorithmic stablecoin of SORA and Polkadot & Kusama can play a more significant role on Curve and add value to it’s community.

References/Useful links:

Website: https://sora.org/

Documentation: SORA Network - SORA

Github Page: SORA · GitHub

Communities: - Twitter: https://twitter.com/sora_xor - Telegram: Telegram: Contact @sora_xor

Audit: Nettitude audit Polkaswap XSTUSD - Google Docs

Protocol Description:

SORA is a new economic system aimed at creating a supranational, decentralized central bank with built-in tools for DeFi. The SORA network implements a new way of parachain architecture on Polkadot and Kusama network, with the external bridges.

XSTs are the synthetic assets for the SORA ecosystem. Unlike other synthetix which are backed by some collateral token, XST is backed by the special liquidity source of XOR.

XST is minted by burning XOR, which will mint XST through a liquidity source built in to Polkaswap. XSTUSD is an algorithmic stablecoin pegged to the USD through the value of DAI.

A single XSTUSD is a claim for 1 US$ worth of XOR, and not a claim for actual US$.

More information on XSTUSD is available in the following links:

• The Request for Proposal to implement XSTUSD on the SORA network https://github.com/sora-xor/rfps/blob/master/open_rfps/XST(USD)%20RFP
• A Medium article by SORA outlining the characteristics and use of XSTUSD Introducing XSTUSD — A Stablecoin on SORA for Polkadot Ecosystem | by SORA | SORA | Medium
• A Forbes article that covers XSTUSD in comparison to existing examples.
  The Rise Of Decentralized Money On Polkadot - New Algorithmic Stablecoin Launches On SORA

Describe the proposed asset(s), the corresponding protocol(s), and historic prices of the token (price must come from the source of highest liquidity).

Motivation:

Thanks to a combination of XSTUSD’s unique liquidity source that requires XOR to be burnt in order to mint XST, this stablecoin is at a unique advantage in the Polkadot & Kusama space as SORA recently secured a Kusama parachain. With Parity’s ongoing work to set up a KSM-DOT bridge progressing smoothly, the bases are set for XSTUSD to propagate.

It is important to note that $1 of XSTUSD is equivalent to $1 worth of XOR and as an algorithmic stablecoin there is no overcollaterization for minting, additionally, there is no additional protocol fee to to swap XSTUSD for XOR.

The motivation to add a gauge on Curve is to increase the demand and establish an additional use for XSTUSD, the cross-chain algorithmic stablecoin. This would positively impact Polkaswap as it’s liquidity source, and the subsequent DOTSAMA ecosystem through the parachain and bridge. The current XSTUSD Curve pool is a result of a development proposal that the SORA community voted, which approved $600,000 of bribes for Votium over the span of 4 months. You can find the approved proposal here.

These are the key motivations to participate for a gauge, as we believe this would benefit the Curve community, the entire SORA community, as well as the Polkadot & Kusama space.

Explain why this pool needs incentivization

Specifications:

Please answer in a short and clear manner.

1. Governance: Provide current information on the protocol’s governance structure. Provide links to any admin and/or multisig addresses, and describe the powers afforded to these addresses. If there are plans to change the governance system in the future, please explain.
   XSTUSD governance is managed by the SORA Governance system.

Currently on-chain voting with XOR tokens is used, which is the same method for democracy as in Kusama and Polkadot. However, in the future the SORA Parliament will take over decision making like this, using random sortition to choose subsets of decision makers.

1. Oracles: Does the protocol rely on external oracles? If so, provide details about the oracles and their implementation in the protocol.
   The protocol relies on it’s in-house developed oracles called SORAcles. These will be finished in May 2022
   SORA Oracles Proposal md by WRRicht3r · Pull Request #33 · sora-xor/rfps · GitHub
2. Audits: Provide links to audit reports and any relevant details about security practices.

Done by Nettitute on 20th of February 2022.

docs.google.com

Nettitude audit Polkaswap XSTUSD

This Doc is private

1. Centralization vectors: Is there any component of the protocol that has centralization vectors? E.g. if only 1 dev manages the project, that is a centralized vector. If price oracles need to be updated by a bot, that is a centralized vector. If liquidations are done by the protocol, that is also a centralization vector.

XSTUSD gets it’s price data from the XOR-DAI price, so there is nothing that needs updating by humans; it’s all on-chain.

1. Market History: Has the asset observed severe volatility? In the case of stablecoins, has it depegged? In the case of an unpegged asset, have there been extreme price change events in the past? Provide specific information about the Curve pool: how long has it been active, TVL, historical volume?

XSTUSD has an increasing quality of peg since it’s launch in October 2021.

Curve pool: Curve.fi active since October 2021.

TVL: $ 1.4 Million

Historic volume: -

Exchange rate XSTUSD/DAI incl fees: 0.9883