[BIP-358] Enable GHO/wstETH Gauge [Ethereum]

BAL Gauges
1

PR with Payload

Summary:

This wstETH/GHO pool to be a 80wstETH-20GHO Weighted Pool. 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.

This proposal is for a new pool wstETH/GHO to be created on Ethereum.

References/Useful links:

GHO

wstETH

Protocol Description:

Aave Protocol
The Aave Protocol is a decentralized liquidity protocol that is deployed across many EVM compatible networks including but not limited to Optimism, Arbitrum, Avalanche and Polygon. Currently, the Aave Protocol has a TVL of approximately $7.8 Billion.

GHO is a decentralized multi-collateral stable coin that is fully backed, transparent and native to the Aave Protocol.

Lido Protocol
stETH is a token that represents staked ether in Lido, combining the value of initial deposit + staking rewards. stETH tokens are minted upon deposit and burned when redeemed. stETH token balances are issued 1:1 to the ethers that are staked by Lido Protocol. stETH token’s balances are updated when the oracle reports change in total stake every day.

wstETH is a wrapped version of regular stETH, while wETH is a wrapped version of Ethereum.

Motivation:

This proposal aims to add a veBAL gauge for 80wstETH-20GHO.

One of Balancer’s near term strategic objectives is to attract more yield bearing liquidity and more GHO liquidity pools to Balancer. This pool will provide resilence to the GHO peg and has the potential for inclusion in the Aave Safety Module.

Specifications:

  1. Governance:
  • AAVE and stkAAVE serve as the governance tokens for the Aave DAO. Holders can vote on proposals at both a Snapshot level and through the Aave DAO on-chain governance portal.
  • Find more information about governance on Lido’s forum here.
  1. Oracles:
  • rateProvider0 (for GHO): 0x0 (none)
  • rateProvider1 (for wstETH): 0x72D07D7DcA67b8A406aD1Ec34ce969c90bFEE768
  1. Audits:

Aave v3

GHO

  1. Centralization vectors:
  • Aave Governance is decentralized, and all changes must go through a transparent and well-tested governance process.
  • Lido Governance, see here
  1. Market History:
  • GHO is yet to be released by the Aave DAO.
  • wstETH has a long successful history within Balancers protocol.
  1. Value:
  • This pool is a Core Pool and therefore will generate revenue for the DAO via wstETH derived yield and through swap fees.

Pool Details

Link to Pool: 80wstETH-20GHO Pool - 0x7d98f308db99fdd04bbf4217a4be8809f38faa64
Link to Gauges: 80wstETH-20GHO Gauge - 0x6EE63656BbF5BE3fdF9Be4982BF9466F6a921b83

Transaction: 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): 0x6EE63656BbF5BE3fdF9Be4982BF9466F6a921b83
gaugeType(string): Ethereum

Disclosure:

This proposal is the sole work of Matthew Graham and Dydymoon from Tokenlogic. This proposal has been funded via the Butter Delegation Campaign.

Details on TokenLogics delegation platform can be found here.

Disclaimer

The GHO token will not launch until this weekend, but we would like to support Aave in a smooth and rapid launch. Therefore, the payload in its current form is incomplete. This BIP will become obsolete in the event if the pool and gauge specifications are not added to the payload by July 17th 2023, 08:00 PM CET and successfully completes the Balancer Maxi review cycle.

A no vote will be considered a vote against the process, not the pools, and the votes will be rerun next week with a complete spec.

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https://snapshot.org/#/balancer.eth/proposal/0xb0bac6f1d4d368a494ae8d3ef3c09fb23a77ca7ab7b64398fd02add21a989238

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