Proposal: Add a FXN Gauge to sUSDaf/fxSAVE Pair

Proposal: Adding an FXN Gauge to sUSDaf/fxSAVE Pair

Introduction

Asymmetry Finance proposes adding an FXN gauge to the sUSDaf/fxSAVE pair to direct incentives. This will boost liquidity, increase trading volume, and enhance rewards for LPs and voters in the FXN ecosystem, while promoting sUSDaf, the yield-bearing version of USDaf.

References

Protocol Description

Asymmetry Finance, an officially Licensed Liquity v2 fork, offers USDaf, a synthetic dollar borrowed against BTC or yield-bearing stablecoins (e.g., wBTC, cbBTC, tBTC, sUSDe, sfrxUSD, sDAI, sUSDe, sUSDS). USDaf is a friendly fork of Liquity v2 and the only immutable Ethereum mainnet deployment other than Liquity themselves. sUSDaf, built in partnership with Yearn is an ERC-4626 yield-bearing token, that accrues yield by staking USDaf in the stability pool in an optimized manner, generating yield from borrower interest and liquidation collateral. The two-token model balances staking and liquidity provision, with Yearn V3 auto-compounding for high yields. The sUSDaf/fxSAVE pair aims to deepen liquidity and attract DeFi users.

Specifications

  • Governance: ASF token holders and Asymmetry DAO govern via veASF
  • Oracles: Chainlink oracles are used for all collaterals in USDaf, with crvUSD EMA fallback oracles in the event that Chainlink prices go stale. sUSDaf has no external oracles
  • Audits: USDaf and the Liquity v2 codebase has been audited 11 times.
  • Centralization Risks: Fully decentralized, permissionless borrowing, and transparent minting, with no off-chain dependencies.
  • Market History: USDaf launched successfully; sUSDaf debuted May 12, 2025, with Yearn. Peg-stable, sUSDaf yields 5-12%. Mainnet launched May 28, 2025.

Proposal Details

Adding an FXN gauge to sUSDaf/fxSAVE will:

  • Increase Liquidity: Incentives deepen liquidity for easier trading.
  • Boost Volume: More traders increase sUSDaf/fxSAVE activity.
  • Enhance Rewards: Better returns for LPs and veFXN voters.
  • Drive Adoption: Exposes sUSDaf to Protocol f(x) users, as well as exposing sUSDaf users to fxSAVE, mutually growing the reach of both protocols.

Conclusion

The sUSDaf/fxSAVE FXN gauge will enhance liquidity, volume, and rewards, benefiting both Asymmetry and Protocol f(x) ecosystems. We request veFXN voters to support this proposal.

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