Balancer

PR with Payload

https://github.com/BalancerMaxis/multisig-ops/pull/2091

Note: (This proposal has been reposted, as the previous one contained the old BOLD token)

Summary

This proposal seeks to activate a gauge for the wUSDN/BOLD Stable Pool on Balancer v3 Mainnet, enabling liquidity mining incentives liquidity providers.

References/Useful Links

Smardex

• Smardex Website
• Smardex Documentation
• Smardex GitHub
• Smardex Twitter

Liquity

• Liquity Website
• Liquity Documentation
• Liquity GitHub
• Liquity Twitter

Protocol Description

SmarDex introduces USDN, a fully decentralized synthetic dollar designed to maintain a stable value around $1 while providing yield to its holders. Unlike traditional stablecoins backed by centralized reserves, USDN employs a delta-neutral strategy through a structured product mechanism. This approach balances long and short positions within the protocol to stabilize USDN’s value and generate returns for participants.

Key features of USDN include:

• Decentralization: Operates entirely on-chain without reliance on centralized entities.

• Yield Generation: Utilizes a rebase mechanism to distribute yields directly to holders’ wallets.

• Delta-Neutral Strategy: Maintains stability by balancing leveraged long positions against the vault’s holdings.

• No Custodial Risk: Users interact directly with smart contracts, eliminating the need for intermediaries.

For more details, refer to the SmarDex Documentation.

Motivation

The creation of a Balancer v3 gauge for the wUSDN/BOLD pool will significantly deepen BOLD liquidity and introduce a dual-yield opportunity for LPs—combining wUSDN’s high native yield with BAL emissions. This pool will serve as the primary venue for BOLD <> wUSDN swaps, supporting broader DeFi integrations and composability for both tokens.

By referencing the detailed SMARDEX BOLD Liquidity Initiative, this proposal aims to align incentives between protocols, bootstrap TVL, and showcase innovative cross-protocol treasury management using LQTY governance and Smardex’s native incentives.

A gauge is essential to attract deep, sustainable liquidity and accelerate adoption for BOLD and wUSDN across the DeFi ecosystem.

Specifications

1. Governance

• Smardex
  • There is no governance for now.
  • For USDN, some contracts are renounced.
  • The remaining contracts are managed by a 3/5 multisig controlled internally by the team
• Liquity
  • There is no on-chain governance for Liquity v2.
  • Master contracts are deployed without the possibility of modification (immutable/renounced).
  • Upgrades or parameter changes are not possible, which limits the risk of centralization and human intervention.

2. Audits

• Smardex
  • Paladin Blockchain Security
  • Trails of Bits
  • Hacken Proof and Immunefi for bug bounties, up to $5,500,000
• Liquidity
  • Most recent audit (May 13 2025) by Cantina
  • Multiple Audits reports

3. Centralization Vectors

• Smardex
  • There is no governance; the team manages all operations. Some contracts are renounced, while others are controlled by a 3/5 multisig
• Liquidity
  • Contracts are immutable after deployment: no admin keys, no upgrades possible.
  • No multisig or team control over funds or protocol logic.
  • The protocol operates in a totally decentralized way

4. Market History

• As a new Balancer v3 pool, the wUSDN/BOLD pair aims to establish itself as a significant liquidity venue for wUSDN and BOLD.

5. Value

• Offering greater liquidity for the BOLD and wUSDN
• SDEX vote incentives (aka ‘bribes’) for veBAL holders

Specification

Enable Gauges: The Balancer Maxi LM Multisig 0xc38c5f97B34E175FFd35407fc91a937300E33860 will interact with the GaugeAdder contract to activate:

• tokenized vault:
• Gauge Type: Ethereum
• Gauge Address: 0x5a099E2C2a41A5A0aD99e4971c711400Eeef34db
• Pool Address: 0x3e6c8f40d38d0b41c94862e6d4083c65ce0ce566
• Rate Provider: 0x829de46686cd24edfcd28763a70034b3b9b4d7cd