Motivation
Balancer contributors have recently been exploring ways to increase non-toxic flow through the protocol. In the wake of BIP-295’s approval discussions have been in progress with 1inch to bring this discount to 1inch Fusion. This would be done by granting the role for calling setSwapFeePercentage to the 1inch Labs settlement contract - then they would pass in interactions which lower the fee on the pool, execute the swap, then return the fee to the previous value. The swap fee could be lowered in this manner by up to 80% to enable a significant increase in “good flow” to Balancer pools.
Since Fusion is also available on L2’s we can extend this discount to Arbitrum and Polygon as well.
Most of Balancer’s protocol fees are generated from yield rather than swaps. There is a chance this proposal leads to more swap fees but even if it does not, one of the most important goals for the Balancer ecosystem is to grow our DEX volume market share. This is likely one of the best chances we have to move the needle on that.
Risks
The Maxis will retain the ability to call setSwapFeePercentage on all pool factories so if something unexpected happens and fees are dramatically lowered or raised globally by accident it can be fixed very quickly by the Maxis. Governance can also revoke this role at any time in the future through a future BIP.
Specification
Ethereum
If approved, the DAO Multisig eth:0x10A19e7eE7d7F8a52822f6817de8ea18204F2e4f will interact with the Authorizer 0xA331D84eC860Bf466b4CdCcFb4aC09a1B43F3aE6 and call grantRoles with the following arguments:
Roles: [0x3697d13ee45583cf9c2c64a978ab5886bcd07ec2b851efbea2fced982b8f9596,0xc065d550fa98abc242b6baf98e7b2063590675f1ddd81bdb9ea8d8f5c5d52f98,0x7b09f4b61ccfe85436161b0223489b187d9f9158c542b5e6105df147afc78aca,0x15d3918ca8f9895d8906a780f5f402d32707bada7b1b5e7b21b7351257103a35,0xcf5e03a737e4f5ba6d13e23f893a1e0255b362d8ce22e9568e1565fcf92789c7,0x6c3a14f10cbcc5a3f4d0e4e8ad279e7a842735ab188e2b13fb84c6542cc3320c,0x78e9adfe5f05d7114a59d0870d78971192f871f57bb36e2aff2edbe75d425844,0xdee20d81c6075dcc437dbaaf02d316ab255cfcae4a154e04b17abdebc70a5b48,0xd8638fc873fb8c5c0e67c437099a19eb0546fb439dab8babff44196f11d44831,0x1a88f724f61d4985675e65a2ba85b2a985d250dac00d27e06303f4cdabc906ae,0xa5547190e3d59f2bfeb4174ca3454b2f2acaeed644bc7ad7018014516f73f2bd,0x0acc45f3ac7c04369514ee383aad82d5c1eef484fbf9ca5f6d87ad5c5859da40]
Which correspond to the roles for calling `setSwapFeePercentage` on the following pool factories
WeightedPool v1
WeightedPool2TokensFactory
Stable Pool v1
Metastable
Stable Pool v2
ComposableStablePool
WeightedPool v2
ComposableStablePool v2
WeightedPool v3
ComposableStablePool v3
WeightedPool v4
ComposableStablePool v4
Account: 0xad3b67bca8935cb510c8d18bd45f0b94f54a968f
Which corresponds to the address for 1inch Labs’ Fusion resolver.
Polygon
If approved, the DAO Multisig matic:0xeE071f4B516F69a1603dA393CdE8e76C40E5Be85 will interact with the Authorizer 0xA331D84eC860Bf466b4CdCcFb4aC09a1B43F3aE6 and call grantRoles with the following arguments:
Roles: [0x3697d13ee45583cf9c2c64a978ab5886bcd07ec2b851efbea2fced982b8f9596,0xc065d550fa98abc242b6baf98e7b2063590675f1ddd81bdb9ea8d8f5c5d52f98,0x7b09f4b61ccfe85436161b0223489b187d9f9158c542b5e6105df147afc78aca,0xce2ff98f438259b5f78b8cf5818e70fcc2ff35b13dc38356616b1431cea9726e,0xec5cf9ce37bce68429403f673d6dfd0a89d33d4af5960016f9a1bbd07c71be88,0xdb0c4ed39b25abe74530d93d30f2b418aca586eeb088f33f8e60a329c85ab416,0xa301b9c1ebd296e579cdbb2d99698e23f8197f41880e33215a5936b204b2b971,0x0cdf946c050f680a2bbec467e09e41ceaf108b331b1d5b902c9fa45f9e2d944a,0xdee20d81c6075dcc437dbaaf02d316ab255cfcae4a154e04b17abdebc70a5b48,0x22f3e304ab030be776b205711d7ba79f146b07726b10c5e9d29c24dacc09c140,0xf6c13c09ddba8f114fe2b23ff442766dca7a9bf303adfde386f20ac38c749733,0x0ad9662eb9978d490b9f9bc897a15af8892817d0c299cb8ec0c624cccd6b192d,0xdc4f292a9c37b8bfbaf2dc78ff4d2a53114e770bcb186a21957939f01ffbfe6b]
Which correspond to the roles for calling `setSwapFeePercentage` on the following pool factories
WeightedPool v1
WeightedPool2TokensFactory
Stable Pool v1
Metastable
Stable Pool v2
ComposableStablePool
WeightedPool v2
ComposableStablePool v2
WeightedPool v3
ComposableStablePool v3
WeightedPool v4
ComposableStablePool v4
Account: 0xad3b67bca8935cb510c8d18bd45f0b94f54a968f
Which corresponds to the address for 1inch Labs’ Fusion resolver.
Arbitrum
If approved, the DAO Multisig arb1:0xaF23DC5983230E9eEAf93280e312e57539D098D0 will interact with the Authorizer 0xA331D84eC860Bf466b4CdCcFb4aC09a1B43F3aE6 and call grantRoles with the following arguments:
Roles: [0x80d8e99e3b5fd50648b67ce84571603afc8ed8ea28310c743deef793d7a98d00,0x6213e9042b9814b9567bde72d3c7a61372862c3ac88c2df77d3205221af6c871,0xbe1515c6c371fbc1aead7b0ed2f23f3bc176eb727e587494ac0055414c5b4c11,0xe4ae7db31fa76b12846f2837e5b8ee34891b1b170470345521a088bd662e4571,0x79cf7f42fcb330293c1d98b9ac2db3a3122a615e3630596ebc2584c6bf0d1346,0xcf5e03a737e4f5ba6d13e23f893a1e0255b362d8ce22e9568e1565fcf92789c7,0xdee20d81c6075dcc437dbaaf02d316ab255cfcae4a154e04b17abdebc70a5b48,0x92253d002d63e0211f775527924e2891f18bb060ff2ab3be19c6b242bafa5fec,0xc383be2c6e87a9b18ae919e677f011279a8d98346dbcd5cb326053f5f873b753,0x70368640683195889d0f146ab060210f43fbb1c317a87bdf17a4dca8d8feed86,0x50ccb689033ea83f58a1b54b091916255bb56c2334a12ed908ecb06f72d2a688]
Which correspond to the roles for calling `setSwapFeePercentage` on the following pool factories
WeightedPool v1
WeightedPool2TokensFactory
Stable Pool v1
Stable Pool v2
ComposableStablePool
WeightedPool v2
ComposableStablePool v2
WeightedPool v3
ComposableStablePool v3
WeightedPool v4
ComposableStablePool v4
Account: 0xad3b67bca8935cb510c8d18bd45f0b94f54a968f
Which corresponds to the address for 1inch Labs’ Fusion resolver.
