[BIP-26] Enable MAGIC/USDC Gauge [Arbitrum]

BAL Gauges
1

Gauge Proposal Template:

Summary:

Proposal to add gauge support for the newly created MAGIC/USDC 50/50 pool on L2 Arbitrum. Please note that this proposal is coming from a partner project of Treasure, LifeDAO.

References/Useful links:
(Please note that I am only able to post 2 links as a new user, modifying links to ensure I can get this posted. You have my long term support here, but I want to adhere to the constraints accordingly).

Link to:
• Website: >>.treasure.lol
• Documentation: >>.treasure.lol/about-treasure/readme
• Github Page: >>.github.com/TreasureProject
• Communities: >>.treasure.lol/community
• Other useful links?: >>.life.treasure.lol

Protocol Description:

Describe the proposed asset(s), the corresponding protocol(s), and historic prices of the token (price must come from the source of highest liquidity).
Magic is the underlying token of the Treasure web3 gaming ecosystem on L2 Arbitrum. Without spending too much time deep diving the game itself, there is a growing community with Treasure related projects driving the majority of L2 volumes. While they have always dominated NFT marketplace volumes, their recent launch of Trove marketplace has cemented this.

Motivation:

MAGIC/ETH has historically been the primary (only) major source of liquidity in the ecosystem, and we would like to enable MAGIC/USDC liquidity as an alternative. The liquidity has so far also been dominated by Sushi, and this would open up liquidity and trading opportunities to expand on Balancer. This will likely not be our only pool proposal, and we hope to expand with more pools in the near future.

Specifications:

  1. Governance: Provide current information on the protocol’s governance structure. Provide links to any admin and/or multisig addresses, and describe the powers afforded to these addresses. If there are plans to change the governance system in the future, please explain.
    Treasure Governance: >>.docs.treasure.lol/about-treasure/governance
    LifeDAO Governance: >>.snapshot.org/#/0xlifedao.eth

  2. Oracles: Does the protocol rely on external oracles? If so, provide details about the oracles and their implementation in the protocol.
    None for the pricing itself, though chainlink integration has completed for NFT pricing mechanics. >>.docs.treasure.lol/references/articles/treasuredao-announces-integration-of-chainlink-oracles-for-secure-nft-marketplace-pricing

  3. Audits: Provide links to audit reports and any relevant details about security practices.
    As this is a web3 gaming project, there are no specific audits for the liquidity pool aspect of what is being done. There are audits being completed for various aspects related to staking in the game, as well as for partner projects, but they are not specific to liquidity pools.

  4. Centralization vectors: Is there any component of the protocol that has centralization vectors? E.g. if only 1 dev manages the project, that is a centralized vector. If price oracles need to be updated by a bot, that is a centralized vector. If liquidations are done by the protocol, that is also a centralization vector.
    No centralized vectors, the team prioritizes security and risk of dependencies in their work and of their partners.

  5. Market History: Has the asset observed severe volatility? In the case of stablecoins, has it depegged? In the case of an unpegged asset, have there been extreme price change events in the past? Provide specific information about the Balancer pool: how long has it been active, TVL, historical volume? You must provide a direct link to the pool AND a link to your pool’s gauge.

The pool was just created on balancer, but we expect to seed the pool with 5 figures and drive the LifeDAO community’s use of this pool as a default for trading upon approval. As noted, I believe this will open up more opportunities to bring Treasure related trading into the Balancer ecosystem, and would like to use this as our first chance at that. >>.arbitrum.balancer.fi/#/pool/0xb3028ca124b80cfe6e9ca57b70ef2f0ccc41ebd40002000000000000000000ba

Ethereum root gauge address: 0x68EBB057645258Cc62488fD198A0f0fa3FD6e8fb

3 Likes
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Thanks for making this proposal - happy to see interest from other Arbitrum projects.

Can you talk a bit about why this pool needs to be 80/20? You mention several times the goal here is to open up liquidity and trading opportunities which would be better accomplished with a 50/50 pool I think.

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Thanks for the response! The pool doesn’t need to be 80/20 but there are some benefits in having it weighted toward magic. The community as well as DAOs of projects related to the Treasure project have a general preference toward maximizing the amount magic held when possible, and Balancer’s product is rather uniquely suited to target a pool in this way. The existing pool that is widely used (referenced above) is a Sushi MAGIC/ETH pool with magic emissions allocated to incentivize liquidity. This pool will not have incentivized emissions, though I hope this pool can achieve enough liquidity to consider a proposal that bifurcates the liquidity.

Having said that, we are willing to throw our support into the pool that the Balancer community believes is best for expanding trading activity on MAGIC/USDC and to do so through the Balancer platform. I will setup a 50/50 MAGIC/USDC pool and revert back/update the post.

1 Like
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Sounds good. The main reason I’d prefer a 50/50 is because most MAGIC trading will be happening on the incentivized Sushi pool. an 80/20 pool on Balancer will not perform very well in terms of volume/fees because it isn’t the primary source of MAGIC liquidity. It could get to the point where we’re giving BAL emissions so people can hold 80% MAGIC and Balancer earns very little revenue in exchange for that.

We will soon be rolling out a (likely aave) boosted stable pool on Arbitrum - an interesting pool here might be MAGIC/[boosted stable pool BPT]. It may be another month or so before we’re ready for this though. You could start with MAGIC/USDC then migrate over later if you want. Nice thing about MAGIC/[boosted stable pool BPT] is it would be eligible to become a “core pool” per BIP-19 - the fees Balancer collects from this pool would be used as a bribe to incentivize voters to direct emissions to it.

1 Like
5

FYI - I have updated the original post to include a new 50/50 MAGIC/USDC pool that I’ve setup. Although it has some initial liquidity, the main funding used for seeding will follow once it has Gauge support to push incentives toward it.

I am interested in the boosted stable BPT implementation and you will have our support in creating and expanding liquidity on it once it becomes available. We can start with the MAGIC/USDC pool and start marketing Balancer within the community to use this pool, and migrate to the aave stable implementation when ready. We are looking to do more in the near term, and so this pool will be a good first step toward partnerships.

Please let me know if I can provide any additional information to help see this through.

3 Likes
6

cheers, will include this in the votes going out tomorrow

7

Cool, I’d echo Solar’s comments, glad to see an Arbitrum project on the forum here. I actually created the existing MAGIC pool on Balancer to try to generate some interest from the Treasure community, so glad to see someone else from the community approaching us.

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https://snapshot.org/#/balancer.eth/proposal/0x509854e07ebc7e7d18111ba54969f2dcd1855f894e0b18483ab1da5b16f6ff8a