Summary:
Due to the recent vulnerability disclosure, the deployment of the ComposableStablePoolFactory-v3 is configured to address the potential issues related to Balancer’s previous composable stable pools (v2).This pool uses the new pool factory and will be composed of three Euler linear pools. The underlying tokens are USDC and FRAX. These will each be wrapped through Euler’s market to earn LPs additional yield. 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 contents being all large cap stable tokens.
References/Useful links:
Euler: Link to:
• Website
• Documentation
• Github Page
• Communities
FRAX: Link to:
• Website
• Documentation
• Github Page
• Communities - Discord link
USDC: Link to:
• Website
• Documentation
• Github Page
• Communities - Coingecko link
Protocol Description:
Euler is a permissionless lending protocol custom-built to help users lend and borrow digital assets. This provides yield bearing sources for various tokens, this case the stablecoins listed above. USDC is the dollar backed stablecoin issued by Circle.
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. The great migration as we are going through now will harbor many more boosted pool options for users and Balancer to tap into a wide variety of yield sources. Euler is providing the capacity for various tokens outside of bb-euler-USD, one being FRAX in this pool.
Specifications:
- Governance: USDC are centralized and does not have a governance forum. Euler’s governance details can be seen here. 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 Euler’s here FRAX 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 USDC here . and Euler here. FRAX here .
- Value: LPs & Balancer will earn the protocol fee on underlying bb-euler-FRAX and bb-euler-USDC as well as swap fees. 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: 0x00C2A4be503869Fa751c2DbcB7156cc970b5a8dA
Link to gauge: 0xD65979f15cfB52E9a6a4f8DEA34c69c1568EA4A8
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 0xD65979f15cfB52E9a6a4f8DEA34c69c1568EA4A8 and the corresponding gauge type for the data(bytes) argument.
data(bytes) : 0x3a04f900000000000000000000000000d65979f15cfb52e9a6a4f8dea34c69c1568ea4a80000000000000000000000000000000000000000000000000000000000000002