Gauge Request Presentation:

• Targeted Pair: wUSDN-LP
• IBT contract address: 0x06a491e3efee37eb191d0434f54be6e42509f9d3
• LP contract address: 0x668786e69a70cd983919d58f008744979d4a6a66
• Current TVL in the pair : $1k+ (aiming for $500k of POL after the proposal is passed)
• Twitter: @SmarDex
• App: https://SMARDEX.io/usdn/vault
• Chain: Ethereum

Summary:

This proposal aims to establish a gauge for wUSDN on Spectra on Ethereum mainnet. wUSDN is the wrapped version of USDN, a rebasing token. In this regard, the protocol works similarly to Lido’s stETH and wstETH.

Background

SMARDEX is a leading DeFi protocol focused on efficient liquidity provision, sustainable stablecoin yield strategies, and smart AMM mechanisms. The project is deeply integrated within the Web3 space, building a next-generation ecosystem around its unique value propositions.

Recently, SMARDEX introduced USDN, a synthetic dollar that utilizes a delta-neutral strategy. Unlike other tokens of the same type, USDN will be decentralized, and will operate by using SMARDEX’s proprietary and decentralized perpetual DEX for cash/carry trade operations. USDN leverages yield from LST-backed perps instead of relying on centralized entities or real-world assets. This ensures that USDN remains censorship-resistant and fully on-chain.

To broaden its appeal and user base, SMARDEX is incorporating gaming elements into its ecosystem, particularly through SMARDEX Poker Pro. The project has also formed a strategic partnership with Stake, an online gaming and sports betting platform, offering exclusive bonuses to SMARDEX users. This integration of DeFi, poker, and online gaming, with USDN serving as the stable currency for these activities, seeks to create synergies and expand adoption beyond traditional DeFi spheres into the online gaming and poker communities.

Justification

Integrating wUSDN into Spectra offers several advantages:

1. Ecosystem Diversification: wUSDN brings a new stablecoin option to Spectra, enriching the diversity of available assets.
2. Long-term Alignment: The SMARDEX project commits to aligning with Spectra's long-term interests through:

• Acquiring and maintaining a veSPECTRA position
• Using SDEX bribes to support the gauge

Metrics:

• The current Native APY is 28% (average APY of the past 10 days)
• wUSDN total TVL on Ethereum is $969k ($3.1M for USDN)
• 924k wUSDN (3,1M for USDN) in circulation

This proposal is authored by Telos Consilium, under mandate of SMARDEX.