# \[BIP-246\] Enable wstETH/bb-a-wETH Gauge \[Arbitrum\]

**URL:** <https://forum.balancer.fi/t/bip-246-enable-wsteth-bb-a-weth-gauge-arbitrum/4608>\
**Category:** BAL Gauges\
**Created:** [April 5, 2023, 3:03pm UTC](https://forum.balancer.fi/t/bip-246-enable-wsteth-bb-a-weth-gauge-arbitrum/4608 "2023-04-05T15:03:44Z")\
**Posts on this page:** 2\
**Page:** 1

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**Author:** ![Llama](https://yyz1.discourse-cdn.com/flex027/user_avatar/forum.balancer.fi/llama/32/2387_2.png) [@Llama](https://forum.balancer.fi/u/Llama)\
**Post date:** [April 5, 2023, 3:03pm UTC](https://forum.balancer.fi/t/bip-246-enable-wsteth-bb-a-weth-gauge-arbitrum/4608/1 "2023-04-05T15:03:44Z")

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> <https://github.com/BalancerMaxis/multisig-ops/pull/137>

**Summary:**

> This pool uses the ComposableStablePoolFactory-v3 1 which addresses the [reentrancy vulnerability](https://forum.balancer.fi/t/reentrancy-vulnerability-scope-expanded/4345) disclosed during February 2023. This gauge is uncapped, and would enter as a “core pool” under [BIP-19](https://forum.balancer.fi/t/bip-19-incentivize-core-pools-l2-usage/3329). This means 65% of 50% of yield generated by this pool is to be used for bribing for votes on it via [Hidden Hand](https://hiddenhand.finance/balancer). The remaining 35% goes to Balancer DAO as revenue.
> 
> The pool wstETH/bb-a-wETH is to replace the [wstETH/wETH](https://app.balancer.fi/#/arbitrum/pool/0x36bf227d6bac96e2ab1ebb5492ecec69c691943f000200000000000000000316) 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.

**References/Useful links:**

> - [Website](https://stake.lido.fi/)
> - [Documentation](https://blog.lido.fi/)
> - [Github Page](https://github.com/lidofinance)
> - [Communities](https://www.coingecko.com/en/coins/lido-dao)

**Protocol Description:**

> 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.

**Motivation:**

> 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.

**Specifications:**

> 1. **Governance:** Find more information about governance on Lido’s [forum](https://research.lido.fi/).
> 2. **Oracles:** Arbitrum wstETH Oracle, see [here](https://arbiscan.io/address/0xB1552C5e96B312d0Bf8b554186F846C40614a540)
> 3. **Audits:** For [Lido Protocol](https://github.com/lidofinance/audits) and Aave v3, see below
> 
> - [ABDK](https://github.com/aave/aave-v3-core/blob/master/audits/27-01-2022_ABDK_AaveV3.pdf)
> - [OpenZeppelin](https://github.com/aave/aave-v3-core/blob/master/audits/01-11-2021_OpenZeppelin_AaveV3.pdf)
> - [Trail of Bits](https://github.com/aave/aave-v3-core/blob/master/audits/07-01-2022_TrailOfBits_AaveV3.pdf)
> - [Peckshield](https://github.com/aave/aave-v3-core/blob/master/audits/14-01-2022_PeckShield_AaveV3.pdf)
> - [SigmaPrime](https://github.com/aave/aave-v3-core/blob/master/audits/27-01-2022_SigmaPrime_AaveV3.pdf)
> 
> 1. **Centralization vectors:** See [here](https://lido.fi/faq).
> 
> 2. **Market History:** See [wstETH](https://www.coingecko.com/en/coins/wrapped-steth) and [wETH](https://www.coingecko.com/en/coins/weth).
> 
> 3. **Value:** Balancer will earn the protocol fee on wstETH yield and deposit yield generated by Aave v3 on Arbitrum via bb-a-wETH.

data(bytes) : `0x3a04f90000000000000000000000000074d3aa5f9a2863dc22f6cf9c5faaca4e1fc86f750000000000000000000000000000000000000000000000000000000000000004`

**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.

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<div class="post-metadata">

**Author:** ![solarcurve](https://yyz1.discourse-cdn.com/flex027/user_avatar/forum.balancer.fi/solarcurve/32/1487_2.png) [@solarcurve](https://forum.balancer.fi/u/solarcurve)\
**Post date:** [April 12, 2023, 11:58pm UTC](https://forum.balancer.fi/t/bip-246-enable-wsteth-bb-a-weth-gauge-arbitrum/4608/2 "2023-04-12T23:58:38Z")

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[https://snapshot.org/#/balancer.eth/proposal/0x8ddd98b8335e5ea184b66b26e59f2f1b3e1e2b83d30004120e9e9a0ae40ea97c](https://snapshot.org/#/balancer.eth/proposal/0x8ddd98b8335e5ea184b66b26e59f2f1b3e1e2b83d30004120e9e9a0ae40ea97c)