Balancer

Summary

This proposal authorizes a one-time retroactive partner fee payment of $6,257 USDC to QuantAMM contributors for the period between their pool launches and the first fee processing round on 2025-09-03. As outlined in BIP-871, QuantAMM is entitled to partner fees that were inadvertently allocated to veBAL holders during the retroactive period. This correction will be implemented by deducting the amount from the veBAL USDC share in the next fee distribution run.

Introduction

QuantAMM pools were deployed on Ethereum mainnet and Base, with gauges receiving veBAL incentives prior to the formal integration of QuantAMM into the protocol fee allocation system. During this interim period, fees that should have been directed to QuantAMM were instead distributed to veBAL holders as part of the standard fee flow.

Following the terms established in BIP-871, QuantAMM has requested that these retroactive fees be calculated and paid out to their treasury. The @MAXYZ service provider has developed tooling to accurately compute the owed amount based on the established partner fee model.

Motivation

Honoring Contributor Agreements: BIP-871 established the fee-sharing arrangement with QuantAMM. Retroactive fees for the period before systematic fee processing began are rightfully owed to QuantAMM under this agreement.

Fair Correction of Overpayments: veBAL holders received a larger share of protocol fees during the retroactive period than they were entitled to under the BIP-871 framework. Deducting the retroactive amount from future veBAL distributions ensures a fair rebalancing without requiring any clawback mechanism.

Operational Transparency: The calculation methodology has been implemented in the protocol fee allocator codebase (PR #245), ensuring full transparency and reproducibility of the retroactive fee computation.

Technical Specification

Scope

• Networks: Ethereum Mainnet and Base
• Pool Set: All QuantAMM BFT (Boosted Fee Tier) pools
• Retroactive Period: From QuantAMM pool launch dates until 2025-09-03 (first fee processing round)
• Amount Due: $6,257 USDC

Calculation Methodology

The retroactive fee calculation follows the same logic as the standard protocol fee allocator:

1. Period Segmentation: The retroactive date range is divided into biweekly periods aligned with standard fee runs
2. Fee Collection: For each period, non-core fees collected and earned fees are fetched for all QuantAMM pools
3. Partner Fee Split: The partner fee allocation is applied based on:

• Fees collected during the period
• QuantAMM share of non-core fees
• Pool category classification

4. Aggregation: Partner fees from each period are summed to determine the total retroactive amount

Implementation

The retroactive fee payment will be executed as follows:

1. Governance Approval: This proposal is ratified by veBAL governance
2. Fee Run Adjustment: On the next scheduled fee distribution run following approval:

• Deduct $6,257 USDC from the veBAL holder USDC allocation
• Add the equivalent amount to the QuantAMM partner transfer

3. Multisig Execution: The adjusted fee payload is validated and executed by the Fee allocator multisig through the standard multisig-ops process
4. Reporting: The fee run report will include documentation of the retroactive adjustment for transparency

References

• BIP-871: QuantAMM Fee Arrangement
• PR #245: Retroactive Fee Calculator Implementation
• Issue #233: QuantAMM Retroactive Fees