PR with Payload
Summary
This is a proposal to enable a rETH/sETH gauge on Ethereum.
This pool uses the ComposableStablePoolFactory-v3 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.
Protocol Description
Sturdy introduces a leveraged borrowing market in order to earn users greater yield from their LP positions. Lenders provide liquidity, wETH in the case of the ETH market, which borrowers then can use on whitelisted farms across several protocols.
Several BPTs are listed, or to be listed as collateral on Sturdy. Enabling BPTs as collateral leads to more liquidity being deposited into Balancer v2 pools via the automated looping strategies. A portion of the yield generated from the strategies is directed to depositors of the borrowed asset. More information on Sturdy’s structured strategies can be seen here.
The liquidity pool uses the and is composed of rETH and sETH. sETH is a receipt token reeived when users deposits wTEH or ETH into Sturdy Protocol’s ETH liquidity pool. LPs on Balancer receive a portion of the yield generated by the Sturdy Protocol.
rETH is the LST issued by RocketPool, one of the most prominent and the most decentralized Ether staking service; more information on rETH can be found here.
References/Useful links
Motivation
Balancer’s ability to increase capital efficiency using linear and boosted pools is taking shape across the protocol. This Sturdy boosted pool fits Balancer’s initiative to be a protocol where LPs can safely tap into external yield sources while maintaining effective liquidity for swapping. This will earn both LPs and the DAO yield and provide Sturdy with a place for their wrapped tokens to easily be swapped and deposited as the pool increases in TVL.
Specifications
Governance: Rocketpool’s governance can be found here. Sturdy’s governance details can be seen here. The STRDY token is not yet transferrable.
Oracles: This pool only relies on the rate providers of rETH ans sETH to inform when yield is earned.
Audits: See Sturdy’s here; see RocketPool’s audits here.
Centralization vectors: Sturdy’s multi-sig signers are noted here.
Market History: See rETH here.
Value: LPs & Balancer will earn the protocol fee on underlying sETH as well as swap fees.BIP-19 will incentivize TVL to continue to grow here with trading volume, and this implementation will continue to draw in new volume, as well as showcase the power of these pool types.
Pool Address: 0xFCF77141908Aa22bfEAc216123C5FEb2531f373e
Gauge Address: 0xFa58735ceEAa83a7c9c13CA771F12378D40D7b05
Specification:
The Balancer Maxi LM Multisig eth:0xc38c5f97B34E175FFd35407fc91a937300E33860 will interact with the GaugeAdderv3 at 0x5efBb12F01f27F0E020565866effC1dA491E91A4 and call the addEthereumGauge function for each pool’s gauge with the following arguments:
0xFa58735ceEAa83a7c9c13CA771F12378D40D7b05 which corresponds to the uncapped gauge for this pool.