Balancer

This proposal appears on Balancer’s forum

Summary: The FIAT DAO community is proposing the following pools be given a veBAL gauge:

• FDT/ETH
• FDT/OHM-ETH-DAI
• FIAT/staBAL3

Note that while the FDT/ETH pool has been set up already by the FIAT DAO community, the other pools, as they are nested pools, require deployment support from the Balancer team which is underway at the time of posting this proposal.

All pools should be deployed at the time, or shortly thereafter, when voting for this proposal starts ($FIAT launch is imminent). If need be, the two nested pools can be a separate proposal.

References/Useful links:

• See Linktree due to forum link restrictions for new members

Protocol Description:

The FIAT protocol is a DeFi-native repo market solution for providing liquidity to holders of fixed income assets. It allows users of apps like Element Finance, Notional Finance, and Yield Protocol to bring their proofs of liquidity to the protocol in order to collateralize a debt position in $FIAT, a stable value asset. Our v1 has just launched, and it’ll look and feel familiar for users who have previously minted DAI, RAI, or MIM. By utilizing proven stablecoin mechanisms, the protocol is able to offer competitive borrowing power to holders of such collateral assets, allowing them to releverage fixed yields or meet current liabilities as the locked assets mature.

$FDT is the governance token associated with FIAT DAO. In its current iteration, $FDT confers voting power for users to participate in decision-making around protocol parameters. We are currently underway with an implementation of a v2 specification in which $FDT allows users to gauge behind supported collateral types in order to allocate a protocol backstop and inform algorithmic interest rates. We anticipate that the 80/20 FDT/ETH BPT will be the primary governance power-conferring asset in the updated DAO architecture.

Motivation:

FIAT DAO has expressed its desire to become a material player in veBAL governance going forward, as can be seen by a forum discussion accessible via the Linktree above. To achieve this, we are willing to commit DAO funds for the acquisition of voting power and the bribing of existing veBAL participants. For such strategies to have the greatest impact, we are keen to deepen $FDT secondary liquidity. Acquiring a veBAL gauge for the FDT/ETH pool, as well as for the FDT/OHM-ETH-DAI pool, will allow the DAO to move over existing protocol owned liquidity and engage in the Hidden Hand marketplace. As FIAT DAO proves itself a reliable partner to the Balancer ecosystem and the FIAT protocol gets more time in the wild, we hope to be in a position to conduct a DAO token swap at some point in the future as well.

Specifications:

1. Governance: FIAT DAO is a completely on-chain organization, with no corresponding real world entity in place. The FDT token has been given away for free since November of 2021, and a DAO smart contract architecture has been live since December 2021.

2. Oracles: $FDT is a standard ERC-20 DeFi governance token that comes with the volatility inherent to the sector. $FIAT is a DAI-like asset that will come to be backed by less liquid derivatives, but at the moment only supports collateral types with existing secondary markets.

3. Audits: Audits of our protocol and our collateral oracle system can be found in the Security repo within our Github (again, see Linktree).

4. Centralization Vectors: $FDT holders determine which assets are supported as collateral and the parameters associated with each.

5. Market History: $FDT has been transferable since November 2021. It has struggled with liquidity due to a removal of liquidity incentives in February 2022 and routing issues on Uni v3 due to an unsupported OHM pairing.

This proposal only covers approval of FDT/WETH 80/20. Gauge: 0xbD0DAe90cb4a0e08f1101929C2A01eB165045660