PR with Payload
gm! Excited to be making our first proposal on behalf of the Squid and Axelar Community.
Motivation
BAL is currently bridged to Base via the native bridge, which works very well for transfers to Base, but poorly for transfers away from Base, due to the 7 day waiting period. An alternative method for bridging is needed for user experience and arbitrage. Squid was the first bridge off of Base and has serviced the Base community since, servicing $86 million in volume since base launch.
Base is one of the most promising ecosystems in crypto, and Balancer is cementing a strong position, with a series of gauges starting next week.
Proposal
Squid and Axelar would like to join the Balancer ecosystem through creation of an axlBAL/BAL pool, seeded with 20k BAL of POL, to allow fast bridging of BAL off of Base via Squid. Squid does not have its own DEX mechanism or contracts, so all BAL volume on Squid will be driven through Balancer pools before and after bridging, generating fees for the network. By utilizing Axelar’s General Message Passing, Squid is able to achieve swaps between any token on any chain in one click.
This proposal also intends to activate a gauge on the axlBAL/BAL pool on Base, and the gauge for the pool on Arbitrum as it will act as a core piece of infrastructure for the network.
As an Arbitrage path, we think it would be valuable to set up an axlBAL/BAL pool on Arbitrum as well, with 20k BAL total liquidity. This pool will allow arbitrage of the Base pool at tighter spreads due to the lower fees on Arbitrum. Squid recommends this, but it is an optional and up to the Balancer community.
About Axelar
Axelar delivers secure interchain communication. That means dApp users can interact with any asset, any application, on any chain, with one click. You can think of it as Stripe for Web3. Developers interact with a simple API atop a permissionless network that routes messages and ensures network security via proof-of-stake consensus.
Axelar was one of the only two protocols selected for use in Uniswap’s cross-chain roadmap Notion – The all-in-one workspace for your notes, tasks, wikis, and databases.
About Squid
Squid is a secure cross-chain router on Axelar Network that enables interoperability between blockchains and applications. Squid is easily integrated via their API, SDK, and front-end tools that facilitate fast and reliable single-click transactions and token transfers. Developers can use Squid to onboard users from any ecosystem and create scalable, seamless user experiences for anyone with a crypto wallet.
Specification
Part A:
The Balancer Maxi LM Multisig eth:0xc38c5f97B34E175FFd35407fc91a937300E33860 will interact with the GaugeAdderv4 at 0x5DbAd78818D4c8958EfF2d5b95b28385A22113Cd and call the addGauge function with 0x67313e858fB87Cc4b30AD56b6B461D7450738950 for the gauge(address) argument, and Base the gaugeType(string).
This will also be done for the Arbitrum pool:
The Balancer Maxi LM Multisig eth:0xc38c5f97B34E175FFd35407fc91a937300E33860 will interact with the GaugeAdderv4 at 0x5DbAd78818D4c8958EfF2d5b95b28385A22113Cd and call the addGauge function with 0x66E9A9d0a35C6a368A66A432AbD9dB4Fb248f212 for the gauge(address) argument, and Arbitrum the gaugeType(string).
Part B:
If approved, the DAO Multisig 0x10A19e7eE7d7F8a52822f6817de8ea18204F2e4f will call transfer on the BAL token 0xba100000625a3754423978a60c9317c58a424e3D to send 40,000 BAL to the liquidity mining multisig
recipient: 0xc38c5f97B34E175FFd35407fc91a937300E33860
amount: 40000000000000000000000
Part C:
From there, the Maxis will bridge 10,000 BAL and 10,000 axlBAL to each Base and Arbitrum networks, then supply the liquidity to axlBAL/BAL pools. The pool tokens will be sent to the DAO Multisig on each respective network, and not staked in gauges. The transactions for these steps will be posted in an edited post or comment after execution, assuming this BIP passes a snapshot vote.
Bridging BAL to axlBAL on Base or Arbitrum can be done via the Squid interface at https://app.squidrouter.com and selecting Ethereum BAL as source token, and Arbtitrum or Base axlBAL as destination token. Execution can be done via Squid’s integration with Gnosis Safe’s front end, under the “Apps” section (search for “Squid”).