PR with Payload
Summary:
This proposal aims to add a Balancer gauge for vETH/ETH 50/50 weighted pool on Ethereum, with a 10% emissions cap.
References/Useful links:
Link to:
• Website: bifrost.finance
• Documentation: https://wiki.bifrost.finance/
• Github Page: Bifrost · GitHub
• Communities: Discord ; Twitter
Protocol Description:
Bifrost (https://bifrost.finance) is a substrate based Kusama and Polkadot parachain that provides non custodial decentralised cross-chain liquid tokens for staked assets. By leveraging on Polkadots cross-consensus message format (XCM) it provides standardised cross-chain liquid staking services for multiple chains (currently 6+ chains).
Bifrost is currently one of the largest liquid staking protocols on Polkadot with a current total TVL of $63M. vETH, Bifrost liquid staking token (LST) for staked ETH was launched in late November of 2020, and is the protocols largest LST in terms of TVL with $36M. vETH is an ERC-20 decentralised yield bearing dual protocol asset that supports both ERC 20 and Substrate Based (via the Ethereum ↔ Polkadot transfer bridge) in the future.
In order to adapt Ethereum Shanghai update, vETH 2.0 is a new contract which involves two main new functions:
Once The Merge is completed, the exchange rate of vETH/ETH will gradually increase as staking rewards accumulate.
vETH 2.0 supports vETH unstake.
At the initial stage of vETH 2.0 launch, two steps of multi-signature still remain (sign by 5 members in Bifrost governance council + technical committee):Deposit confirmation: SLP deposit contract executes the final step to deposit ETH to Beacon Chain validators. Before that, it needs Bifrost multisig contract to confirm that the withdrawal credential hash in deposit json (validator deployed by Infstones) is the same as Bifrost generated.
vETH-ETH rate relayer: The relayer bot deployed by Bifrost foundation, synchronize the volumes of ETH in staking and vETH total issuance to SLP contract. The SLP contract has been set a rate increased cap to prevent if the replayer feeds malicious data to dramatically increase vETH price.
Bifrost plans to replace multisig steps by using Secret Shared Validators (SSV), which encrypts a validator key and splits it into several KeyShares. These KeyShares are distributed to four non-trusting nodes run by operators, delivering a robust, fault-tolerant, active-active redundancy for Ethereum staking. Thus, the current multisig process will be abandoned.
Learn more details about vETH 2.0 mechanism and open-sourced contracts here.Useful Links regarding vETH
Motivation:
With the imminent Shapella update, Bifrost has upgraded its vETH contract and is looking to implement itself within Ethereum and the broader L2 ecosystem. Bifrost aims to expand the availability of its LST and its liquidity through Balancer given its flexibility and unique value proposition within the liquid staking market. Furthermore, by ensuring that the vETH/ETH pool on Balancer is its primary liquidity hub, Bifrost objective is to strategically integrate with protocols such as Aura Finance to provide composable and competitive yield solutions and use cases for holders. Given Bifrost’s desire to integrate with both Balancer and Aura, Bifrost is committed to driving value to the veBAL and vlAURA markets via Hidden Hand voting incentives.
Specifications:
-
Governance: Bifrost on-chain governance and Bifrost forum
-
Oracles: vETH Balancer Rate Provider
-
Audits:
Slowmist; vETH 2.0 Contract
Slowmist; Bifrost Protocol
Certik; Staking Liquidity Protocol Pallet -
Centralization vectors: The protocol is decentralised, the multisig confirmation steps are mentioned in Protocol Description section, here are specification of details:
-
Market History: vETH composable stable pool
vETH has been a tradable asset since the 27th of November 2020.
Recap of vETH 1.0 initial launched in 2020
Publish of vETH 1.0 deposit history
Bifrost vETH officially listing on Uniswap
AMM Liquidity Mining of vETH in Loopring
vETH listed on DODO -
Value: Bifrost aims to make vETH/ETH pool on Balancer as its primary source of liquidity for vETH on Ethereum. As a result, this should result in volume and trading fees for Balancer.
Contract Address
- vETH-WETH Composable Stable Pool: ComposableStablePool | Address 0x793f2d5cd52dfafe7a1a1b0b3988940ba2d6a63d | Etherscan
- Gauge with 10% emissions cap: 0x8a88C1f44854C61a466aB55614F6A7778473418b
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 0x8a88C1f44854C61a466aB55614F6A7778473418b and the corresponding gauge type for the data(bytes) argument.
data(bytes):
0x3a04f9000000000000000000000000008a88c1f44854c61a466ab55614f6a7778473418b0000000000000000000000000000000000000000000000000000000000000002