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 remaining 35% goes to Balancer DAO as revenue.
The pool wstETH/bb-a-wETH is to replace the wstETH/wETH pool on Arbitrum.
The current wstETH/wETH contains $17,826,606 in TVL at the time of writing and is the second largest wETH pool on Balancer’s Arbitrum deployment.
This pool utilises wstETH and linear pool bb-a-wETH which deposits wETH into Aave v3 wETH reserve. The linear pool utilises a wrapper developed by Aave Companies.
With the introduction of wstETH to Aave v3, the author expects users to deploy yield maximising strategies utilising the wstETH/wETH loop. This is expected to generate borrowing demand for wETH and deposit APR for those that depsit wETH into Aave v3.
Incorporating the bb-a-wETH will lead to additional revenue to Balancer DAO and also additional incentives flowing through to Hidden Hand which veBAL holders can benefit from.
- Governance: Find more information about governance on Lido’s forum.
- Oracles: Arbitrum wstETH Oracle, see here
- Audits: For Lido Protocol and Aave v3, see below
Centralization vectors: See here.
Value: Balancer will earn the protocol fee on wstETH yield and deposit yield generated by Aave v3 on Arbitrum via bb-a-wETH.
Link to Pool: 0x5A7f39435fD9c381e4932fa2047C9a5136A5E3E7
Link to Gauges: 0x74d3aa5F9A2863DC22f6cF9c5faaca4E1fc86F75
Transaction Specification: The DAO Multisig
0x10A19e7eE7d7F8a52822f6817de8ea18204F2e4fwill interact with the
0xC128468b7Ce63eA702C1f104D55A2566b13D3ABDfor the target(address) argument and using
0x3a04f900followed by the gauge address
0x74d3aa5F9A2863DC22f6cF9c5faaca4E1fc86F75and the corresponding gauge type for the data(bytes) argument.