[BIP-338] Enable 55/45 auraBAL/wstETH Gauge [Arbitrum]

BAL Gauges
1

PR with Payload

Summary:

This BIP requests a gauge for the 55/45 auraBAL/wstETH pool to build liquidity of auraBAL on Arbitrum.

References/Useful links:

• Website https://aura.finance/
• Documentation https://docs.aura.finance/
• Github Page Aura Finance · Aura Finance · GitHub
• Communities Aura Finance
• Other useful links? https://forum.aura.finance/

Protocol Description:

See: [Proposal] Allowlist Aura Finance in Balancer VotingEscrow

Centered around veBAL, Aura coordinates incentives around vote-escrowed tokens to boost yield potential and governance power of DeFi liquidity providers, governance token stakers and voters. Since Aura launched one year ago, it has played a vital role in the Balancer ecosystem. Aura is now expanding to Arbitrum and other L2s to further support Balancer.

Motivation:

The synergies between Balancer and Aura are widely known. Aura is expanding to Arbitrum to support Balancer liquidity on L2s. auraBAL is the liquid wrap of veBAL. The approval of this gauge for the 55/45 auraBAL/wstETH pool will set up a successful launch on Arbitrum and provide liquidity for auraBAL. The 55/45 weight of the pool will facilitate trading and help generate more trading fees and wstETH yield for liquidity providers and the Balancer protocol, along with other core pools on Arbitrum.

A summary and description of Aura’s intended Arbitrum deployment can be found in [AIP-31] Arbitrum Deployment.

The auraBAL tokens bridged to Arbitrum can be deposited into the Arbitrum auraBAL vault and benefit from auto compounding rewards, similar to Mainnet.

All auraBAL deposited into the mainnet bridge contract (AuraBalProxyOFT) will be staked in the mainnet auraBAL vault earning yield. This yield will be periodically harvested and distributed to the sidechains. This enables an opportunity for a leverage APR based on a ratio of bridged to staked auraBAL on those supporting chains.

Specifications:

1. Governance -

Aura is governed by the vlAura community with Snapshot as its voting platform. Aura recently adopted AIP-27 to enable weighted veBAL voting following Balancer’s adoption of BIP-300. It’s in the process of expanding its delegate base.

2. Oracles -

Aura does not rely on external oracles.

3. Audits:

See https://docs.aura.finance/security.

4. Centralization vectors:

Aura is a non-custodial, non-pausable platform. The only centralization vectors pertain to off-chain Snapshot voting and the two 4/7 multisigs.

5. Market History -

auraBAL is now a year old. auraBAL’s main liquidity is on Balancer on Ethereum. The two pools, auraBAL Stable (50/50 auraBAL/80BAL20wETH) and 33 auraBAL (33/33/33 graviAURA, auraBAL, wETH), currently have over $22,000,000 of combined liquidity. These two will still exist on Mainnet, while this pool will serve as the primary source of liquidity for auraBAL on Arbitrum.

  • auraBAL’s historic performance in relation to 80BAL20wETH is available at Balancer Wars.

6. Value -

Arbitrum already has over $11mm in wstETH/wETH liquidity that will promote swapping between auraBAL, wETH, and wstETH. In addition to providing aurabAL liquidity on Arbitrum, pairing auraBAL with wstETH 55/45 should help to further enhance the core pool incentives on Arbitrum.

  • A separate Temp Check will soon be posted to the Aura forum and will be contingent on this BIP passing Balancer governance. The Temp Check/AIP will seek to modify AIP-26 by re-allocating from that AIP’s prior allocations, for at leaset 10 gauge cycles, each of ~7.5k of Aura, to be used for this pool in the manner authorized by the AIP (and on HH’s Aura market on Arbitrum once launched by HH), with the remaining Aura for each cycle to be used per the parameters of AIP-26.

Pool link

Gauge address: 0x175407b4710b5A1cB67a37C76859F17fb2ff6672

Subject to 2% emission cap.

Transaction Specification:
The Balancer Maxi LM Multisig eth:0xc38c5f97B34E175FFd35407fc91a937300E33860 will interact with the GaugeAdderv4 at 0x5DbAd78818D4c8958EfF2d5b95b28385A22113Cd and call the addGauge function with the following arguments:
gauge(address): 0x175407b4710b5A1cB67a37C76859F17fb2ff6672
gaugeType(string): Arbitrum

11 Likes
2

Full support. Important gauge request for auraBAL liquidity on Arbitrum.

4 Likes
3

We ask that this proposal go to vote in the upcoming Snapshot round for June 22nd.

2 Likes
4

https://snapshot.org/#/balancer.eth/proposal/0xf85dfff6d5edebc4c83e088197779d5a968fb85394ba95d0fed8b9e55bd35f9a

2 Likes