title: [SGR] Create LP-sw-GHO/USDf Gauge
author: @TokenLogic
created: 2025-05-20
Target Pair: PT-sw-GHO/USDf / sw-GHO/USDf TBA
IBT Contract Address: TBA
Network: Ethereum
Simple Summary
This publication proposes creating a gauge to incentivise LP-sw-GHO/USDf liquidity for the GHO/USDf pool on Balancer v3, Ethereum Mainnet.
Background
GHO is a decentralized multi-collateral stablecoin that is fully backed, transparent, and native to the Aave Protocol. Useful links related to GHO are included below.
Falcon introduces USDf, an overcollateralized synthetic dollar backed by delta-neutral strategies. The protocol enables users to mint USDf by depositing assets such as ETH, BTC, USDC, and other supported tokens into a strategy vault. These vaults run fully on-chain and use perpetual futures to balance long and short exposures, allowing the system to hedge price volatility while producing yield.
USDf offers users:
- A permissionless, non-custodial stablecoin option,
- Native yield through staking into sUSDf,
- Peg stability backed by arbitrage and dynamic rebalancing,
- Transparent and verifiable on-chain mechanics.
References/Useful links
GHO Links
USDf Links
Motivation
The Balancer GHO/USDf token represents users’ deposits in the GHO/USDf Composable Stable pool. LP holders currently benefit from base swapping fees, BAL emissions, and yield and points from both aGHO and USDf mechanisms.
This new Spectra pool introduces a structured opportunity for users to speculate on these yield streams through fixed- and variable-rate token splits, alongside point-based rewards at the Spectra level — similar to the GHO/USR pool on Base.
Through this Spectra integration:
- PT holders gain fixed yields.
- YT holders receive variable rewards derived from BAL emissions, swap fees, and any campaign-based incentive mechanisms.
- Traders can speculate on future yield and point value by swapping between PT and YT.
The expected yield for YT holders will be influenced by the cost of emissions, the projected value of Falcon’s points, and overall pool performance.
Benefits of this Integration for Spectra
First-Mover Advantage
This pool will be launched before the Pendle one, and is one of the only opportunity to get exposure to Falcon’s point program.
TVL Growth
By aggregating rewards from both Aave and Falcon ecosystems, the GHO/USDf pool is expected to attract significant capital, particularly from users seeking efficient access to yield-bearing stable assets.
Benefits of this Integration for Aave DAO
veSPECTRA Bribe Potential
The Aave Liquidity Committee may participate in the veSPECTRA bribe market to direct more rewards toward the GHO/USDf LP. This enhances overall user yield and promotes deeper GHO adoption within Balancer and Spectra.
Community Poll
Voting options:
- YAE - Create Gauge for GHO/USDf
- NAY - Do Nothing
- ABSTAIN
Disclaimer
TokenLogic is compensated by the Aave DAO for the creation of this proposal.
Copyright
Copyright and related rights waived via CC0