Hello,
This is a proposal to scale the Gauntlet USDA AMO by 1m.
Context
As part of the launch of USDA, 3m USDA had been pre-minted to be deposited in a Metamorpho vault managed by Gauntlet.
Since then, liquidity in Angle Transmuter scaled from the initial seeding amount and there are now more than $10m USD worth of assets on Angle Transmuter.
The initial 3m deposit amount on Gauntlet vault had been thought so there would be enough in the Transmuter in case everything was borrowed and dumped.
Currently, the average utilization in the markets on which Gauntlet deposits liquidity is close to 80%. While some of the USDA were borrowed to be swapped into USDC, the Transmuter has been well able to handle all this outflow so far.
Proposal
The proposal is to mint 1m USDA and deposit into Gauntlet USDA Metamorpho vault.
Implementation
The USDA Treasury address would then own the gtUSDA tokens obtained after the mint.
Value to the protocol
This increases the borrowing possibilities with USDA and potentially the revenue from the protocol derived from borrowing activities.
Following a more rigorous analysis of the situation and the operational setup this first proposal would imply, I suggest to adjust it a bit for the following:
This is a proposal to scale the Gauntlet USDA AMO by at most 5m USDA to be deposited by tranches of 1m as soon as the average utilization on Angle Morpho markets gets above 80%.
Context
As part of the launch of USDA, 3m USDA had been pre-minted to be deposited in a Metamorpho vault managed by Gauntlet.
Since then, liquidity in Angle Transmuter scaled from the initial seeding amount and there are now more than $10m USD worth of assets on Angle Transmuter.
The initial 3m deposit amount on Gauntlet vault had been thought so there would be enough in the Transmuter in case everything was borrowed and dumped.
Currently, the average utilization in the markets on which Gauntlet deposits liquidity is close to 80%. While some of the USDA were borrowed to be swapped into USDC, the Transmuter has been well able to handle all this outflow so far.
Proposal
The proposal is to pre-mint 5m USDA on the USDA Treasury multisig and deposit USDA into Gauntlet USDA Metamorpho vault by tranches of 1m as soon as the average utilization of the vault gets above 80%.
Implementation
The USDA Treasury address would then own the gtUSDA tokens obtained after the mint.
Signers of the multisig will be in charge of monitoring the utilization on the vaults and adjusting when needed.
The vote here practically should:
- add the protocol Timelock contract as a USDA minter
- mint USDA from the Timelock into USDA Treasury address
Upon execution the USDA Treasury address would then deposit 1m USDA onto Gauntlet USDA vault depending on current utilization.
Value to the protocol
This methodology will increase the borrowing possibilities with USDA and potentially the revenue from the protocol derived from borrowing activities as USDA scales.
Upon seeing this grow, we could then reevaluate the strategy adopted here, and how to further scale the Gauntlet credit line of the protocol.
2 Likes
This sounds good. I wanted to add one general request though… Could the mods post something in the announcements channel on discord 12-24 hours before a governance vote goes live? If I’m not hyper diligent about checking snapshot, I end up missing a lot of governance votes, and the announcement channel seems like a natural place to notify the community about an upcoming vote.
Will do in the future! Thanks
1 Like