PR with Payload
Summary:
This proposal aims to allow the pxETH/WETH gauge to participate in the veBAL incentives.
References/Useful links:
Link to:
- Website: [https://redacted.finance/ and https://dineroismoney.com]
- Documentation: [https://docs.redacted.finance/ and Dinero Docs]
- Github Page: Redacted Protocol · GitHub
- Communities:
** Twitter: https://twitter.com/redactedcartel
** Discord: REDACTED - Dune Analytics: https://dune.com/funky/redacted
- Pool: Balancer
- Uncapped Gauge: Vyper_contract | Address 0xdee29b7b6dF3576280bFBbC088ee9eBAA767C0Bd | Etherscan
Protocol Description:
pxETH is a liquid and fungible receipt token for ETH deposited into the Dinero protocol. pxETH is built on top of the Redacted DAO’s Pirex platform and forms an integral part of Redacted’s Dinero protocol, a protocol which aims to vertically integrate ETH staking, block proposal and building, a RPC, leverage, and yield stripping into one synergistic ecosystem comprising pxETH, the Redacted Relayer RPC, and the DINERO stablecoin. pxETH provides users with a liquid and fungible tokenized staked ETH which benefits from Ethereum staking rewards and other revenue forms such as MEV tips and block rewards. Future pxETH yield and pxETH withdrawals can be tokenized and used within DeFi. Further details about pxETH can be found in the whitepaper here.
In addition to the DEX liquidity for pxETH incentivized by Redacted DAO, the Dinero protocol has additional mechanisms to improve pxETH liquidity and support the pxETH:ETH peg in both normal and adverse market conditions allowing for greater pxETH DeFi composability.
pxETH can be redeemed for ETH from the Dinero protocol either instantaneously for ETH which has yet to be staked or via ETH which is unstaked from validators. In the future a novel incentivized withdrawal pool will facilitate quicker pxETH withdrawals when there is an ETH unstaking queue and/or adverse market conditions.
The governance token for pxETH is BTRFLY.
Motivation:
Redacted has a long and close relationship with Balancer and Aura. Because of this close relationship and Redacted’s vlAURA governance power, we want to have Balancer as the one of our primary venues for crucial pxETH liquidity.
An LST is only as good as its peg. Therefore for pxETH to be successful, significant liquidity is required. With a gauge, Redacted plans to use its governance power and bribes to direct emissions to the gauge and incentivize crucial pxETH liquidity on Balancer, allowing for higher volumes in the LP and also generating fees for veBAL holders.
Specifications:
- Governance:
Redacted’s governance is currently off-chain using Snapshot. The multisig address is: 0xA52Fd396891E7A74b641a2Cb1A6999Fcf56B077e. Decisions relating to inflation, liquidity, partnership or DAO treasury go through a DAO vote, and then are executed by the multisig. On-chain governance will come at a later stage.
- Oracles: Does the protocol rely on external oracles? If so, provide details about the oracles and their implementation in the protocol.
No oracles are currently used.
- Audits: Provide links to audit reports and any relevant details about security practices.
Link to all audits can be found here.
- 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.
4/7 multisig (0xA52Fd396891E7A74b641a2Cb1A6999Fcf56B077e) controls the pushing of validators public keys to the contract.
- 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.
The pxETH/ETH pool has not yet been seeded. As explained above, pxETH has redemption mechanisms which allow the peg to be maintained/ arbitraged. Since launch on 2023/12/13, the main liquidity for pxETH is on Maverick (in anticipation of a gauge on Balancer).
- 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?)
With a gauge, Redacted plans to use its governance power and bribes to direct emissions to the gauge and incentivize crucial pxETH liquidity on Balancer, allowing for higher volumes in the LP and also generating fees for veBAL holders.
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): 0xdee29b7b6dF3576280bFBbC088ee9eBAA767C0Bd
gaugeType(string): Ethereum