Balancer

Payload with PR

https://github.com/BalancerMaxis/multisig-ops/pull/148

Gauge Proposal Template:

Summary:

We have launched a brand new Balancer pool type: TWAMM. This will be a cornerstone in Balancer’s vision of the go-to AMM for DeFi protocols to build and trade upon. TWAMMs are extremely capital efficient and are critical to improve the blockchain’s anti-fragility by facilitating large asset swaps completely on-chain, see asset monetary policy, whale liquidations, treasury management, index fund re-balancing, etc.

References/Useful links:

Link to: • Website: GitHub - Cron-Finance/Cron-Finance • Documentation: https://docs.cronfi.com/ • Github Page: https://github.com/Cron-Finance/twamm • Communities: Mirror, Twitter

Protocol Description:

• Assets: wstETH/rETH
• Corresponding Protocols: Lido, Rocket Pool
• Price: wstETH, rETH

Motivation:

In order for trades to start on the pool, we need an initial resting (seed) liquidity. We believe the trading fees paid to LPs from traders and arbitrageurs of TWAMMs will far exceed the current status quo.

Specifications:

Link to pool Link to gauge

1. Governance:

   • Factory Owner: Gnosis Safe Deployer
   • Admin Privileges: Admin Privileges - TWAMM
   • Governance plans: initially the factory owner will be the default administrator of the pools. However, as new pools are created we plan on handing over the admin privileges to the token’s DAO or controlling party as needed.

2. Oracles:

   • No external reliance, we have a built-in oracle.

3. Audits: Provide links to audit reports and any relevant details about security practices.

   • SpearbitDAO: portfolio/CronFinance-Spearbit-Security-Review.pdf at master · spearbit/portfolio · GitHub

4. Centralization vectors:

   • The only centralization vector is the factory owner controls the admin privileges. The factory multi-sig is a 2/3 Gnosis Safe. The capabilities that the admin has is pausing and setFees. Both of these are in place to ensure optimal operations of the pool. LPs can monitor these events and are free to withdraw liquidity at any time.

5. Market History:

   • Both tokens are wrapped staked ETH.

6. Value: Is this pool intended to be the primary source of liquidity for the token(s)? If this is not the case, explain the expected value add to Balancer (can this pool generate consistent fees?)

   • No, the pool would need roughly $100 - 200k in liquidity to begin with. TWAMMs are extremely capital efficient because they split the trade across thousands of blocks and dedicated arbitrageurs are constantly replenishing the capital when they correct asset price deviations.
   • Nouns DAO is interested in diversifying their treasury of stETH to rETH, roughly $28M at current prices - wallet. This will be an extremely important trade to prove the concept of our protocol and make Balancer the go-to venue for treasury diversification needs.
   • Once TWAMMs become the de-facto solution for large asset swaps, we believe Balancer protocol will become the schelling point for protocols interested in advanced trade execution.

Specification

The DAO Multisig 0x10A19e7eE7d7F8a52822f6817de8ea18204F2e4f will interact with the AuthorizerAdaptor at 0x8F42aDBbA1B16EaAE3BB5754915E0D06059aDd75 and call performAction with the GaugeController at 0xC128468b7Ce63eA702C1f104D55A2566b13D3ABD for the target(address) argument and using 0x3a04f900 followed by the gauge address 0xEeDEd342aa2Cc1b48ECcAfeB663fdf2c1d166934 and the corresponding gauge type for the data(bytes) argument. data(bytes) : 0x3a04f900000000000000000000000000eeded342aa2cc1b48eccafeb663fdf2c1d1669340000000000000000000000000000000000000000000000000000000000000002