[SGR] Create LP-sw-aUSDC Gauge on Base Network

Gauge Requests (SGR)
1

title: [SGR] Create LP-sw-aUSDC Gauge on Base Network
author: @TokenLogic
created: 2025-01-06
Target Pair: PT-sw-aUSDC / sw-aUSDC TBA
IBT Contract Address: TBA
Twitter Link: x.com
Network: Base

Simple Summary

This publication proposes creating a gauge to incentivise LP-sw-aUSDC liquidity for aUSDC on the Base network.

Background

The Aave Protocol is a decentralized liquidity protocol deployed across many EVM compatible networks including but not limited to Ethereum, Base, Avalanche and Optimism. The Aave Protocol has over $34 Billion in TVL and $180M in annualised revenue.

Some useful links relating to GHO are provided below:

Motivation

The aUSDC token represents users’ USDC deposits on Aave v3. aUSDC holders earn the deposit rate for deploying liquidity into the Aave protocol. The aUSDC’ value is pegged to the value of USDC at a 1:1 ratio and can be safely stored, transferred or traded. All yield collected by the aUSDC reserve on Aave Protocol are distributed to aToken holders.

The aUSDC integration by Spectra enables PT Holders to gain access to fixed yield whilst YT holders receive yield from aUSDC. Traders can swap between the PT and YT as a way of speculating on the net change in yield:

  • YT’s yield is correlated to Aave’s lending rates

Benefits of this Integration for Spectra

First Mover Advantage

This pool will be the first in the fixed-yield market built on a lending protocol on the Base network deployment.

Users will gain the ability to speculate on Aave’s deposit rates throughout the market cycle.

Benefits of this Integration for Aave DAO

Potential veSPECTRA Bribe

To further encourage USDC deposits into Aave v3, the Aave DAO has the option to boost the LP-sw-aUSDC yield via participating in the incentive market for veSPECTRA votes to encourage users to deposit USDC into Aave v3 via Spectra.

Community Poll

Voting options:

  1. YAE - Create Gauge for aUSDC
  2. NAY - Do Nothing
  3. ABSTAIN

Disclaimer

TokenLogic is compensated by the Aave DAO for the creation of this proposal.

Copyright

Copyright and related rights waived via CC0.

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