Balancer

Needs to go to vote on Sep 19th

Urgent Classification

This proposal is submitted under the Urgent Actions / Protocol Parameter Adjustments clause of the Balancer Governance Guidelines (BIP-838). Given the timing of Plasma’s launch and Aave’s commitments, waiting for the next standard governance cycle would result in a missed opportunity for Balancer to establish a foundational role. Therefore, we request that this proposal be considered as an urgent vote.

Justification for Urgency

• Plasma’s launch date is fixed and imminent.
• Aave has confirmed they will anchor liquidity there from day one, relying on Balancer to be a key partner.
• Competing AMMs may capture this market if Balancer does not act immediately.
• Delaying deployment until the next cycle risks weakening our strategic position and reducing TVL capture potential.

Summary

This proposal seeks governance approval to deploy and operate Balancer v3 on Plasma through a multi-stage deployment. This approach initially grants all operational permissions to Balancer Onchain Limited, enabling us to operate with flexibility and responsiveness in the rapidly evolving multi-chain landscape while establishing meaningful success criteria for each deployment phase.

Rationale

Plasma is a new EVM chain designed as a hub for stablecoins, with a clear focus on building deep and efficient stable liquidity. Plasma invited Balancer to be part of its foundation, and this path has been further encouraged by Aave. As Balancer has proven to be a key layer of liquidity wherever Aave deploys, this partnership positions both protocols to anchor Plasma’s liquidity stack from day one.

For Balancer, the timing is strategic. Entering early allows us to secure a foundational role before competing AMMs gain traction, while demonstrating the unique advantages of v3 in boosted stable pools, reCLAMM, and flexible design. Clear chain and partners synergy on liquidity for Boosted pools provide strong backing for the launch, and the phased approach with two checkpoints gives the DAO both upside and protection. We can scale if targets are met, and pause or adjust if they are not.

This deployment is therefore both an opportunity to strengthen Balancer’s multi-chain footprint alongside Aave and a prudent expansion managed through measurable milestones.

Launch Scope

• Standard Balancer v3 contracts. With Boosted, Stable, Weighted, Stable Surge and reCLAMM pools.

• Day one pools: GHO/USDT0, USDe/USDT0, sUSDe/USDT0, weETH/WETH Boosted Stable Pool on Aave, and WXPL/USDT0 reCLAMM pool.

• Reward distribution infrastructure and veBAL voting integration live after first check point

• Admin and safety: Initial admin privileges are held by the Omni multisig with a dedicated emergency multi-sig set up. After the Month 6 checkpoint, migrate operational permissions to Balancer Onchain Limited.

Checkpoints

Month 1 checkpoint

• At least $40M TVL in total.

• GHO/USDT0, USDe/USDT0, sUSDe/USDT0, weETH/WETH and XPL/USDT0 pools live, plus at least 5 supporting pools.

• Minimum 15 percent of liquidity utilization on a five day average.

• Minimum of $6k in revenue to the DAO

Decision: if reached, confirm Plasma as a strategic deployment and continue deeper tokenomics integration. If not, reassess plans to keep focus on the chain or a wind down of incentives and gauges.

Month 3 checkpoint

• At least $75M TVL in total.

• Minimum of $15k in revenue from fees for the DAO

• At least 5 pools with $10M or more in TVL.

• Balancer’s reward injector infrastructure is operational with the incentives program aligned.

Decision: if reached, confirm Plasma as a strategic deployment and continue deeper tokenomics integration. If not, reassess plans to keep focus on the chain or a wind down of incentives and gauges.

Month 6 checkpoint

• At least $150M TVL in total.

• Minimum of $40k in revenue from fees for the DAO

• At least 10 pools with $10M or more in TVL.

Decision: if reached, confirm Plasma as a strategic deployment and continue deeper tokenomics integration. If not, reassess plans to keep focus on the chain or a wind down of incentives and gauges.

Risks and Mitigations

• If performance and goals fall short, Balancer can pause new work and reassess at each checkpoint.
• Only audited v3 contracts will be deployed, with emergency permissions granted to a dedicated emergency multi-sig in accordance with other chain deployments.

Treasury Impact

No direct ask to the Balancer Treasury at launch. Any future request comes as a separate BIP with ROI framing.

Conclusion

Deploying Balancer v3 on Plasma gives the DAO the chance to establish a leading role on a chain designed for stablecoin adoption, with clear partner backing and measurable commitments. By starting lean, anchoring alongside Aave, and setting checkpoints with defined success criteria, we balance growth opportunities with prudent risk management.

Approval of this proposal signals the DAO’s intent to expand Balancer’s footprint into a promising new ecosystem while retaining flexibility to adapt based on results. If Plasma delivers on its potential and the deployment meets our targets, Balancer will secure a central position in Plasma’s liquidity stack and strengthen its multi-chain strategy.