Development update

After an intense winter of development, the Gyroscope codebase is fully formed and functional. The Core Development team (FTL Labs) is on track to launch the first new AMMs on Balancer in the coming days. The project is also generally on schedule for launching the full system in June 2022.

Development Highlights

The protocol codebase includes functionality for autonomously managing an asset reserve with several security features, safety checks, and circuit breakers. These are designed to make the protocol as strong as possible in the face of potential risks. For example, the rate-limiting functionality we’ve built into Gyroscope would have almost certainly prevented the recent major protocol exploit on Ronin.

The security features include a new oracle module that triangulates prices between on- and off-chain sources. The oracle module automatically pauses when discrepancies are detected.

The codebase also includes a series of new AMMs that jointly enable a liquidity network to form around Gyroscope. These AMMs include:

• The Gyroscope primary market mechanism — a completely new type of bonding curve, that prices the Gyroscope stablecoin in terms of reserve assets.
• New liquidity pools in Balancer that extend Uniswap v3-style concentrated liquidity.
• A new constant ellipse market maker — this enables the focusing of liquidity in new ways that strengthen liquidity in the Gyroscope stablecoin secondary markets (as well as having many other potential uses).

We believe that a number of these primitives that have gone into Gyroscope will push the DeFi space forward in terms of security, best practices, and AMM capabilities and will be adopted by other projects to build on top of Gyroscope infrastructure.

The codebase is currently under audit with Runtime Verification and Nethermind, another audit was recently completed by Trail of Bits.

– The Gyroscope Core Team