PR with Payload
Summary:
Balancer’s core focus has been yield bearing liquidity for quite some time. As of recent sDAI and sFRAX have become popular yield bearing stablecoins in the greater defi ecosystem. This proposal is meant to enable four gauges encompassing these tokens on Ethereum and Arbitrum in stable and weighted pools. The pool will sufficiently capture which captures the yield of these tokens and creates routing for the 3 primary stablecoins and wstETH to be swapped against. The pools all will be core for Balancer.
References/Useful links:
Link to:
• Maker Webiste
• Documentation
• Github Page
• Communities
Link to:
• Frax Webiste
• Documentation
• Github Page
• Communities
Protocol Description:
sDAI is part of the Maker ecosystem and utilizes the Dai Savings Rate to incentivize users to stake their DAI here https://app.spark.fi/sdai/ .
sFRAX is from the new Frax v3 ecosystem and can be utilized here.
Motivation:
Balancer users will have a more capital efficient place to provide stable coin liquidity routes. As core pools these will receive BAL incentives over time via the BIP-19 cycle. sDAI and sFRAX will overall earn the DAO more revenue and strengthen the routing for swaps on Balancer using the underlying tokens.
Specifications:
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Governance: Maker DAO is a complex and robust Defi ecosystem. Their current governance module can be seen here. Frax governance is outlined here.
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Oracles: This pool relies on the SavingsDAIRateProvider to account for the yield accrued by sDAI. This have been reviewed and deemed SAFE by the integrations team here. The sFRAX and wstETH oracles utilize the Chainlink feed factory or have been proven by being utilized for over a year on the platform.
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Audits: MakerDAO audit reports can be seen here. Frax Finance Audits can be seen here.
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Centralization vectors: Maker Governance is decentralized and has no apparent centralization vectors. The underlying stablecoins USDT, DAI, and USDC are also exposed to their own centralization risks.
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Market History: sDAI history can be seen on coingecko. sFRAX history can be seen here.
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Value: Yield bearing assets increase the value proposition for liquidity providers, and the revenue for the DAO when properly configured. These pools will grow stablecoin and wstETH liquidity for Balancer, while tapping into the yield source of sDAI and sFRAX.
sDAI/3Pool - Mainnet
Pool: 0x49cbD67651fbabCE12d1df18499896ec87BEf46f
Gauge: 0xF6A7ad46b00300344C7d4739C0518db70e722DC4
sDAI/wstETH - Mainnet
Pool: 0x6aa6d7542310cdc75d1179b8729e1e6ec8d42bf1
Gauge: 0x94981eB72dB7EBcAE91ABd5A810f34B1DBf21108
sFRAX/4POOL - Arbitrum
Pool: 0x2CE4457aCac29dA4736aE6f5Cd9F583a6b335c27
Child: 0x050fBe33699E56B577c3D6f090eCE9870A0966bd
Root: 0x62A82FE26E21a8807599374CaC8024fae342eF83
sFRAX/wstETH - Arbitrum
Pool: 0xc757f12694f550d0985ad6e1019c4db4a803f160
Child: 0xeBF2d1995f9bBEa5CE689945b87CA4B5a033B653
Root: 0xBE0FC6A0cc4eeeB168dfbDA75523c43dFE7D1F9C
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): 0xF6A7ad46b00300344C7d4739C0518db70e722DC4
gaugeType(string): Ethereum
gauge(address): 0x94981eB72dB7EBcAE91ABd5A810f34B1DBf21108
gaugeType(string): Ethereum
gauge(address): 0x62A82FE26E21a8807599374CaC8024fae342eF83
gaugeType(string): Arbitrum
gauge(address): 0xBE0FC6A0cc4eeeB168dfbDA75523c43dFE7D1F9C
gaugeType(string): Arbitrum
The pool will have the core pool status as per BIP-457