Balancer

PR with Payload

https://github.com/BalancerMaxis/multisig-ops/pull/383

Summary This proposal is to add a veBAL gauge for the new 80IDLE/20USDC pools on Ethereum.

References/Useful links Idle’s link to: • Website • Documentation • Github Page • Communiy on Discord

Protocol Description Idle launched the Best Yield in 2019, a yield aggregation and optimization strategy, allowing LPs to automatically receive the best return across Aave and Compound without the need to monitor the performances of the underlying markets.

In 2021, Idle released Perpetual Yield Tranches, a new risk-tranching primitive to access emerging markets with two different risk-return profiles: Senior and Junior.

This year, Idle merged the power of Best Yield aggregation with the risk-adjusted returns of Perpetual Yield Tranches. Senior Best Yield, the evolution of the original Best Yield, expands the underlying sources by adding Senior Tranches alongside Aave and Compound, maintaining the same conservative risk profile while extending and improving the yield spectrum. Junior Best Yield aggregates multiple Junior Perpetual Yield Tranches to create a seamless yield generation of boosted performances.

Idle’s product suite is governed by Idle DAO, represented by IDLE token holders.

Motivation After the release of the Balancer boosted pool bb-i-usd, currently sitting at $1.8m liquidity, a new governance proposal has been posted on the Idle forum.

This proposal aims to increase current protocol-owned liquidity by 2x by launching the 80IDLE-20USDC pool on Balancer and deploying treasury funds.

The pool has already been seeded by Idle DAO.

By incentivizing veBAL voters as a form of LM, we identified the next steps to adopt the 80-20 model and make it a core infrastructure for IDLE liquidity provision.

The use of an 80-20 pool would reduce liquidity provision’s barriers for IDLE token holders, given the limited pool share of non-IDLE assets, and incentivize its decentralized nature.

Specifications

1. Governance: USDC is centralized and does not have a governance forum. Idle’s governance details can be seen here.
2. Oracles: Idle does not rely on oracles for fund allocations. Chainlink is used for IDLE liquidity mining on Senior Best Yield.
3. Audits: See Idle’s here
4. Centralization vectors: USDC is inherently centralized.
5. Market History: See USDC here.
6. Value: The pool aims to be the primary source of liquidity for the token.

Link to pool: 0x158e0fbc2271e1dcebadd365a22e2b4dd173c0db0002000000000000000005a5 Link to gauge: 0x9aaAf6757BE9e115895429EF6B81e05dCB951646

Specification The Balancer Maxi LM Multisig eth:0xc38c5f97B34E175FFd35407fc91a937300E33860 will interact with the GaugeAdderv4 at 0x5DbAd78818D4c8958EfF2d5b95b28385A22113Cd and call the addGauge function with the following arguments:

gauge(address): 0x9aaAf6757BE9e115895429EF6B81e05dCB951646 gaugeType(string): Ethereum

This gauge is initially set with a 2% cap.