Summary:
This pool uses the composable stable pool factory and contains two boosted stable pool tokens bb-a-USDC - Balancer’s AAVE boosted USDC, and bb-a-FRAX, Frax’s AAVE boosted token. This is overall more efficient for Frax who has already began to become more apparent in Balancer’s ecosystem with the sfrxETH stable pool deployed just a few weeks ago. Balancer protocol will be earning yield on both boosted portions of this pool, making the token pairing more efficient for both parties. This gauge would enter as a “core pool” under BIP-19, meaning protocol fees earned by this pool would be used to bribe for votes on it. The gauge can be uncapped based on the nature of the pool and market cap of FRAX.
References/Useful links:
USDC: Link to:
• Website
• Documentation
• Github Page
• Communities - Coingecko link
Frax (FRAX) Link to:
• Website
• Documentation
• Github Page
• Communities - Discord link
Protocol Description:
bb-a-USDC is a Balancer’s USDC boosted token implementation of USDC, leveraging AAVE’s boosted strategy. bb-a-FRAX is the AAVE boosted implementation of Frax.
Motivation:
Balancer’s heavy interest in taking over the yield bearing token space and increased capital efficiency through linear and boosted pool architecture continues to take effect. This provides better trading routes on the protocol and more sustainable pool options for liquidity providers to place their funds. There is more interest each week from different projects in regards to leveraging this tech and it is mutually beneficial to Balancer to permit for this healthy competition to emerge amongst gauges.
Specifications:
- Governance: USDC is centralized and does not have a governance forum. FRAX governance process can be seen here and their snapshot here.
- Oracles: This pool only relies on the rate providers of the linear pools to inform when yield is earned.
- Audits: See here
- Centralization vectors: USDC is inherently centralized. FRAX governance process is highlighted above, and their stability mechanism is described here. Also their decentralization ratio is described here.
- Market History: See here.
- Value: Balancer will earn the protocol fee on underlying bb-a-USDC and bb-a-FRAX yield. BIP-19 will incentivize TVL to continue to grow here with trading volume and this implementation will continue to draw in new volume, as well as showcase the power of these pool types.
Link to pool 0x4c8d2e60863e8d7e1033eda2b3d84e92a6418020
Link to gauge: 0x161E5f1D250Ff5486287E591e4486e1ded0D2Be3