PR With Payload
Summary:
Enable a Balancer gauge for ELFI/WETH pool on Ethereum.
Link to pool: 0x10f8EA49255e8a865ca4edA1630168C85cC8ee81
Link to gauge: 0xD5417ACb575c799cEB373f85AdF100C7cD84C8c8
References/Useful links:
Link to:
• Website
• TBD Element v2 Documentation
• See docs for more useful links
ELFI contract address: 0x5c6D51ecBA4D8E4F20373e3ce96a62342B125D6d
Protocol Description:
ELFI is the governance token for the Element Finance protocol. Element Finance offers fixed-rate solutions and is in preparation for a version 2 (v2) upgrade. The initial version, Element v1, utilized a yield-splitting mechanism that separated principal tokens from yield tokens with defined term lengths. This system allowed users to leverage variable yields in one type of trade, while in another, it provided predictable fixed rates, permitting the acquisition of principal tokens at a discount. The upcoming v2 upgrade is designed to introduce continuous liquidity, eliminating the need for preset expiration dates, fragmented liquidity, and LP rollovers. The proposed changes aim to enhance LP efficiency and term underwriting substantially.
Motivation: Element Finance is evaluating optimal trading platforms for the ELFI token. Balancer stands out as a potential primary platform, given its features and liquidity management capabilities. The establishment of the ELFI-WETH pool on Balancer supports this direction, aiming to bolster liquidity and trading efficiency. With the integration of this pool gauge and potential BAL incentives, Element Finance seeks to fortify its trading presence on the mainnet.
Explain why this pool needs incentivisation
There should be a prioritization in rewarding governance token holders who provide liquidity, recognizing their pivotal role in the protocol’s ecosystem. Introducing the ELFI/WETH pool on Balancer aligns with this goal, especially considering the potential future plans to integrate this pool into a voting vault. This integration will enable ELFI/WETH LP tokens to be counted as votes, strengthening governance participation.
Specifications:
- Governance: [Provide current information on the protocol’s governance structure. Provide links to any admin and/or multisig addresses, and describe the powers afforded to these addresses. If there are plans to change the governance system in the future, please explain.]
https://docs.element.fi/governance-council/council-protocol-overview
Element Finance DAO has implemented the Council Protocol as its main governance system.
- Oracles: Does the protocol rely on external oracles? If so, provide details about the oracles and their implementation in the protocol.
N/A
- Audits: Provide links to audit reports and any relevant details about security practices.
TBD for v2 (Completed or on-going audits are not public at the moment)
- Centralization vectors: Is there any component of the protocol that has centralization vectors? E.g. if only 1 dev manages the project, that is a centralized vector. If price oracles need to be updated by a bot, that is a centralized vector. If liquidations are done by the protocol, that is also a centralization vector.
N/A
- Market History: Has the asset observed severe volatility? In the case of stablecoins, has it depegged? In the case of an unpegged asset, have there been extreme price change events in the past? Provide specific information about the Balancer pool: how long has it been active, TVL, historical volume? You must provide a direct link to the pool AND a link to your pool’s gauge.
Balancer - this is the existing Balancer pool with no significant trading history.
Vyper_contract | Address 0xD5417ACb575c799cEB373f85AdF100C7cD84C8c8 | Etherscan - this is the link to the pool gauge. There is an existing Uni v3 pool deployed by an unknown actor with very low liquidity.
- Value: Is this pool intended to be the primary source of liquidity for the token(s)? If this is not the case, explain the expected value add to Balancer (can this pool generate consistent fees?)
The intention is for this pool to be the primary source of liquidity for ELFI.
ELFI/WETH
Pool: 0x10f8EA49255e8a865ca4edA1630168C85cC8ee81](Balancer)
Gauge (2% Cap): [0xD5417ACb575c799cEB373f85AdF100C7cD84C8c(Vyper_contract | Address 0xD5417ACb575c799cEB373f85AdF100C7cD84C8c8 | Etherscan)
Specifcations:
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): 0xD5417ACb575c799cEB373f85AdF100C7cD84C8c8
gaugeType(string): Ethereum