[BIP-233] Enable MaticX / bb-a-wMATIC Gauge [Polygon]

BAL Gauges
1

PR with payload

Summary:

This pool uses the ComposableStablePoolFactory-v3 1 which addresses the reentrancy vulnerability disclosed during February 2023. This gauge is uncapped, and would enter as a “core pool” under BIP-19. This means 65% of 50% of yield generated by this pool is to be used for bribing for votes on it via Hidden Hand.

The pool MaticX/bb-a-wMATIC is to replace the primary MaticX/wMATIC pool on Balancer v2. The current MaticX/wMATIC pool contains $13.5M in TVL at the time of writing and is the second largest pool on the Polygon deployment.

References/Useful links:

Protocol Description:

This pool utilises MaticX and linear pool bb-a-wMATIC which deposits wMATIC into Aave v3 wMATIC reserve on the Aave v3 deployment on Polygon. The linear pool utilises a wrapper developed by Aave Companies.

Motivation:

Migrating from MaticX/wMATIC to MaticX/bb-a-wMATIC is expected to generate an additional 31.6 bps (158/2 x 0.5 x 0.8) of yield for Liquidity Providers (LPs) after fees and bribes relative to the current pool. This is due to the Aave v3 wMATIC reserve generation 158 bps of deposit yield. Historically, this yield has been higher.

Excluding token emissions, the inclusion of the bb-a-wMATIC linear pool, increases the passive yield for LPs by an estimated 10.2%, (0.316%/3.11%). This is equivalent to >8x the swap fee APR at the time of writing as most of the yield is derived from MaticX within the pool.

Specifications:

  1. Governance: Stader protocol is governed by the SD token. Holders can actively participate in governance decisions and share feedback on proposals put forward by the protocol. The following decisions will follow the governance mechanism process:
  • Any implication on smart contract parameters for liquid staking
  • Changes to validator selection criteria
  • Changes to fees
  • SD token related
  • Treasury management and SD staking
  • More details here

  1. Oracles: MaticX Oracle, ‘0x5d37E4b374E6907de8Fc7fb33EE3b0af403C7403’

  2. Audits:

    For Aave v3, see below:

  1. Centralization vectors: See here.
  2. Market History: See MaticX and wMATIC.
  3. Value: Balancer will earn the protocol fee on MaticX yield and deposit yield generated by Aave v3 on Polygon via bb-a-wMATIC.

Link to Pool: TBA
Link to Gauges: TBA

Disclosure:

This proposal is the sole work of @Llama contributor, @Matthew_Graham, via the legal entity TokenLogic. Llama is a Service Provider to Aave DAO.

1 Like
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Pool: 0xE78b25c06dB117fdF8F98583CDaaa6c92B79E917
Gauge: 0x87F678f4F84e5665e1A85A22392fF5A84adC22cD

Transaction: 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 0x87F678f4F84e5665e1A85A22392fF5A84adC22cD and the corresponding gauge type for the data(bytes) argument.

data(bytes) : 0x3a04f9000000000000000000000000000087F678f4F84e5665e1A85A22392fF5A84adC22cD 0000000000000000000000000000000000000000000000000000000000000003

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https://snapshot.org/#/balancer.eth/proposal/0xc772745e083cc5a94e9259a9944a5f4af04f0865ae9eab1035924536d5e9f110