[BIP-119] Adding a Gauge for the New qETH/ETH Pool [Ethereum]

Summary:

Proposal to add gauge support for a newly created qETH/ETH pool on Ethereum.

References/Useful links:

Link to:
• Website:https://tranchess.com/
• Documentation: https://docs.tranchess.com/
• Github Page: Tranchess · GitHub
• Communities: Twitter, Discord, Telegram

Protocol Description:

Tranchess is a yield-enhancing asset tracker launched on BNB Chain in June 2021. It launched its BNB liquid staking fund in January 2022 with its own validator node and is now one of the top protocols on the BNB Chain.

Tranchess’ fund structure comprises one main fund, known as the QUEEN token, and two tranches, BISHOP and ROOK. QUEEN tracks the underlying asset’s price and earns enhanced yield with features such as yield farming and liquid staking. QUEEN can be split evenly into two sub-tranches, BISHOP and ROOK. BISHOP is a stablecoin-like token that earns a steady yield by lending its underlying position to ROOK. ROOK is a token with a built-in leveraged position to the underlying asset without the risk of forced liquidation.

Tranchess currently runs three asset-tracking funds: BTC, ETH and BNB on the BNB Chain, and is launching its first ETH liquid staking fund on Ethereum on Nov. 25th. qETH is the liquid-staked ETH from the Tranchess Beacon chain staking system. For the convenience of future collaboration with other Ethereum protocols, qETH is designed so that the staking rewards of staked ETH is reflected as a change in the fair value of qETH, instead of a change in the number of qETH tokens. The qETH token amount would only change if users stake/unstake additional ETH with Tranchess. The proposed pool, qETH/ETH, allows users to swap between qETH and ETH, as redemption is currently not supported on the Ethereum Beacon chain.

Motivation:

The qETH/ETH pool is the cornerstone of the Tranchess ETH liquid staking product on Ethereum. Currently, the BNB liquid staking fund of Tranchess earns a total yield between 11.2%~27.9%, a combination of Tranchess staking earning of CHESS (Tranchess governance token) and PoS staking. With the ETH liquid staking fund, Tranchess aims to provide a similar enhanced yield for users on Ethereum, and the qETH/ETH pool is an essential feature to a smooth user experience.

A veBAL gauge incentivizes users to participate and would help quickly build up the liquidity of the pool at the beginning stage for a smoother swapping experience. The pool would naturally grow with the protocol, and we expect to facilitate the incentivization with Hidden Hand and the Balancer bribing narrative.

Specifications:

  1. Governance: Tranchess’ governance token is CHESS, which users earn by staking with Tranchess platform. CHESS holders can vote on various governance items, such as the staking earning split between BISHOP and ROOK, the weekly CHESS emission split among different funds, and can collect a weekly rebate of the protocol fees. CHESS holders also vote through Tranchess’s snapshot on proposals which are discussed and raised on the TranchessForum.

  2. Oracles: Tranchess adopts Chainlink as the price oracle.

  3. Audits: Tranchess has done multiple audits since launching as we continuously develop and improve the protocol. The most recent audit report can be found here. Additionally, Tranchess runs a bug bounty program with Immunefi.

  4. Centralization vectors:
    The token is not upgradeable or pausable.
    The owner has limited minting capabilities and cannot blacklist the contract.
    Tranchess ETH liquid staking is a decentralized ETH2 liquid staking product collectively runs by the Tranchess dev team and node operators.

  5. Market History: Link to the pool: 0xC9C5Ff67bB2Fae526aE2467C359609D6BCb4c532
    Link to the gauge: 0xBE05c851c0D84ba94Ec10ec75DF59175C77169B2

  6. Value: The qETH/ETH pool would be the primary source of liquidity for Tranchess ETH liquid staking fund, a first stop that all Tranchess users would visit when staking with Tranchess. The pool organically grows with Tranchess ETH liquid staking volume, contributing to the Balancer community.

Link to the pool: 0xC9C5Ff67bB2Fae526aE2467C359609D6BCb4c532
Link to the gauge: 0xBE05c851c0D84ba94Ec10ec75DF59175C77169B2

2 Likes

https://snapshot.org/#/balancer.eth/proposal/0xc15e88818a915ab7558754921cee07a0edf7a8d6df267a205bad542a2b683670