Enable msUSD/USDC and msETH/WETH (0.01% fee tier) V3 gauge on Base

Gauges
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Enable msUSD/USDC and msETH/WETH (0.01% fee tier) V3 gauge on Base

Overview

  • This proposal seeks to enable msUSD/USDC and msETH/WETH (0.01% fee tier) V3 gauge on Base

Background

  • Metronome is a cross-chain, multi-asset synthetic CDP protocol that enables leverage yield farming for popular productive assets and stablecoins.
  • The primary synthetic assets, msUSD and msETH, are responsible for over $25mm of active borrows by users looping within the Metronome Synth app and external lending markets like Morpho.
  • Metronome has deposited over $400,000 worth of POL positions for these markets to kickstart activity and intends to continually incentivize these pairs to grow total liquidity on PancakeSwap further.

Details

  1. Boost Multiplier and Emission Cap %: 1.00x multiplier and 0.5% emissions cap for each gauge
  2. Audits: Found here
  3. Token Utility: msUSD and msETH are soft-pegged CDP stablecoins. Users borrow these assets against productive collateral positions, and largely swap these tokens for more collateral to loop into a leveraged yield position.
  4. Volatility: As msUSD and msETH are soft-pegged assets, they do fluctuate around peg (historically always within 2% range and typically within 0.5% of peg). Metronome DAO maintains a large treasury of productive positions it utilizes to maintain peg, as well as to offer open market incentives to LPers.
  5. Oracles: Synth assets are hardcoded to the underlying asset, which is an intentional design decision to prevent borrowers from being liquidated in case of any supply squeeze on the open markets.
  6. Control: Metronome contracts are owned by a 3-of-5 multisig. However, the multisig cannot arbitrarily mint synth assets, they can only be interacted with via approved lending markets (no tokens are minted outside of lending pairs for borrowers).
  7. Merit: Metronome has a strong track record as positive sum actors on other AMMs, acquiring treasury positions in other assets like Convex, Aero, and Velo, as well as maintaining strong incentive spend for voters. PancakeSwap will benefit with major liquidity influx and steadfast incentive spend.
  8. Vault Strategy (for Position Managers only): N/A

Links

  1. Token address (msUSD): 0x526728DBc96689597F85ae4cd716d4f7fCcBAE9d
  2. Token address (msETH): 0x7Ba6F01772924a82D9626c126347A28299E98c98
  3. Liquidity pool address (msUSD): 0x708D93fC1C95Fd89ea48A9ca2e2eB13c14f61B54
  4. Liquidity pool address (msETH): 0x323b43332F97B1852D8567a08B1E8ed67d25A8d5
  5. Website: Synth - Metronome - Synthesizing the Future of DeFi
  6. Socials: x.com
  7. Documentation: https://docs.metronome.io/
  8. Github: GitHub - autonomoussoftware/metronome-synth-public
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Thank you for your application! The Kitchen has enabled the msUSD/USDC (0.01% fee tier) V3 gauge and msETH/WETH (0.01% fee tier) V3 gauge on Base with 1x boost multiplier and 0.5% emissions cap for each.