Balancer

PR with Payload

Summary:

This pool uses the metastable pool factory, which allows the protocol fee on yield to be taken, even with the recent potential issue raised for CSPs. This gauge would enter as a “core pool” under BIP-19, meaning protocol fees earned by this pool would be used to bribe for votes on it. The fees collected on Optimism are subject to the agreement between BEETs and Balancer, where fees will be handled according to the terms here; these are subject to change in later proposals.

References/Useful links:

Link to: • Website • Documentation • Github Page • Communities • Other useful links?

Protocol Description:

wstETH is liquid staked ETH. WETH is wrapped Ether.

Motivation:

Balancer’s strategic objectives is to attract more yield bearing liquidity. wstETH has been on Optimism, but incentivizing it through a gauge presents an opportunity to deepen Balancer / Beets liquidity and become the main liquidity destination for wstETH. Adding this wstETH/weth pool will allow the rest of our wstETH liquidity to interact and arbitrage with other weth liquidity on Optimsim. The goal moving forward is center most of Balancer’s liquidity around wstETH and other yield bearing tokens, so this pool will act as a primary route for trades to move through.

Specifications:

1. Governance: Find more information about governance on Lido’s forum.
2. Oracles: This pool relies on a chain link rate provider, with no write functions, for wstETH deployed here .
3. Audits: See here.
4. Centralization vectors: See here for information on this.
5. Market History: See here.
6. Value: Balancer will earn the protocol fee on wstETH yield. Until the CSP protocol fee is sorted out, this is the best option. In the interim we need to position Balancer as the primary liquidity destination for wstETH. This pool isn’t the ideal configuration due to no pairing with bbaWETH, lack of altering the A factor and fixed swap fees.

Link to pool Link to gauge: 0x1b8C2C972c67f4A5B43C2EbE07E64fCB88ACee87

Transaction 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): 0x1b8C2C972c67f4A5B43C2EbE07E64fCB88ACee87 gaugeType(string): Optimism