PR with Payload
Gauge Proposal Template:
Summary:
Overnight.fi is an asset management protocol specializing in delta-neutral strategies. Overnight’s core product is USD+, a 100% collaterized yield-bearing stablecoin. The collateral of USD+ consists of yield-generating DeFi strategies, including lending to Aave, stable-to-stable and delta-neutral strategies.
Inverse Finance is a decentralized autonomous organization that develops and manages a suite of permissionless and decentralized financial products:
- FiRM, a fixed-rate lending market
- DOLA, a stablecoin pegged to the US Dollar
- DBR, a new DeFi primitive that enables holders to service a DOLA loan on FiRM
Overnight has been collaborating with Balancer extensively on Optimism (via Beethoven, Overnight Pulse 1 which at peak reached 7M TVL and 3.2 M daily trading volume) and on Arbitrum (USDC/DAI boosted pool). With the advent of Aura, which enables better bribing economics, Overnight looks to re-enforce the cooperation, starting with bribing the Arbitrum’s pool.
In parallel, Inverse Finance and Overnight have been opportunistically cooperating on various Solidly forks:
- Dola/USD+ pool on Velodrome has been consistently 5M+ TVL for almost 6 months
- Dola/USD+ pool on Chronos exchange has, at peak, reached 3M+ TVL, but is currently at 0.5M.
As Solidly forks in general tend to have a limited life span, Inverse and Overnight have been looking to establish a joint pool on a more sustainable platform. With Aura’s arrival to Arbitrum, the economics of bribing on Arbitrum has improved dramatically. Hence, Inverse and Overnight are jointly proposing the Dola/USDC-bb-wUSD+ pool to enter as a “core pool” under BIP-19. This means protocol fees earned by this pool and a portion of the yield would be used to bribe for votes on it. Consequently, this pool will also receive bribes from those fees in proportion to this pool’s TVL relative to other Arbitrum core pool TVL
References/Useful links:
Overnight’s Link to:
• overnight.fi
• Documentation
• Github Page
• Communities
Inverse Finance link to:
Protocol Description:
Overnight.fi 1 is an asset management protocol specializing in delta-neutral strategies. Overnight’s core product is USD+, a 100% collaterized yield-bearing stablecoin. The collateral of USD+ consists of yield-generating DeFi strategies, including lending to Aave, stable-to-stable and delta-neutral strategies.
Inverse Finance is a decentralized autonomous organization that develops and manages a suite of permissionless and decentralized financial products:
- FiRM, a fixed-rate lending market
- DOLA, a stablecoin pegged to the US Dollar
- DBR, a new DeFi primitive that enables holders to service a DOLA loan on FiRM
Motivation:
Balancer has clearly been pursuing yield bearing liquidity for quite some time. With Aura’s expansion to Arbitrum the opportunity presents itself for Balancer to attract additional projects, like Inverse Finance and Overnight, that are used to growing liquidity through regular meaningful bribing. This is net positive for the protocol.
Explain why this pool needs incentivization
Incentives are required to bootstrap liquidity into the pool to meet TVL and profit ambitions of Inverse Finance and Overnight. The incentives will be supported in the long-term by regular bribing, as well as part of USD+ yield redirected to Aura as bribes. The bribes, in turn, will be supported by protocols’ economics.
Specifications:
- Governance: Information on governance Overview - Overnight Finance Docs (Beta)
- Oracles: Does the protocol rely on external oracles? No
- Audits: Provide links to audit reports and any relevant details about security practices.
- Market History: Overnight Pulse on Beethoven Beethoven X | Overnight Pulse
- Value: The pool is expected to generate significant trading volumes and fees for Balancer, as well as bribes for Aura.
Link to Pool: 0xd6d20527C7B0669989ee082b9D3A1c63aF742290
Link to Gauges:
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): 0x2Cb5EB92314bf3BFE7977e059A72A806d353fd21
gaugeType(string): Arbitrum