PR with Payload
Summary:
This proposal seeks to activate a new gauge on Balancer for the Staked Duet liquidity pool, consisting of a 50/50 mix of staked Ethos Reserve Notes (stERN) and wrapped staked Ethereum (wstETH). The integration of a rate provider with the yield-bearing stERN positions makes this pool as a prime candidate for core pool status on Balancer.
- Staked Duet (50stERN-50wstETH) - uncapped
References/Useful links:
OATH Link to:
Ethos Reserve
- Website
- Documentation
- Github Page C4rena Ethos Reserve Audit Contest Github Repo, see OATH github for others
- Governance
Protocol Description:
wstETH is Lido’s liquid staking derivative of Ethereum.
OATH is the governance token of the OATH ecosystem and notably Ethos Reserve. It can be paired with ETH to create Bonded Oath, or $bOATH. Bonded Oath can be staked by users to earn yield from the protocol and facilitate trading of the OATH token on the Beethoven-X platform.
Ethos Reserve is a decentralized lending protocol on Optimism which allows users to take out interest-free loans against collateral such as BTC, ETH, wstETH and other LSD’s. Loans on Ethos Reserve are paid in Ethos Reserve Notes , or ERN , which is a stable asset pegged to the US Dollar.
Ethos Reserve is leveraging Reaper technology to offer the staked ERN (stERN) vault. The stERN vault stakes ERN in the Ethos Stability Pool on behalf of users, and regularly compounds all rewards back into ERN.
The result is reduced exposure to volatile asset prices during liquidations, maintaining exposure to volatile asset yields, while gaining more underlying ERN.
Motivation:
Although Balancer already offers ETH-USD liquidity pools like FRAX/sfrxETH, Staked Duet stands out with its unique pairing of stERN and wstETH. The yield-bearing nature of stERN, enhanced by a rate provider, opens up innovative yield strategies. Achieving core pool status for Staked Duet could significantly increase its appeal by attracting additional liquidity through the potential for recycled fee incentives.
Specifications:
- Governance: Under the governance of the OATH ecosystem, ensuring a transparent and community-centric decision-making process.
- Oracles: Employs a rate provider for stERN to ensure accurate and real-time asset valuation, critical for yield calculations.
- Audits: The Ethos Reserve, including its stERN component, is backed by comprehensive audits, bolstering the security and reliability of the pool.
- Centralization vectors: This pool operates with a high degree of decentralization, minimizing centralization risks.
- Market History: The performance history of stERN and wstETH can be tracked through platforms like BeethovenX and Coingecko, offering transparency and insight into market dynamics.
- Value: The introduction of the Staked Duet pool on Balancer aims to broaden the platform’s appeal in the DeFi sector by offering unique yield opportunities and addressing a gap in the real-yield ETH-USD liquidity market. Balancer will earn the protocol fee on interest bearing stERN and wstETH in the pool and so will LPs. The BIP-19 flywheel will incentivize TVL to grow here with trading volume and our staked ethereum pillars will continue to have Balancer as their ideal liquidity destination.
Link to pool: Beethoven X | Staked Duet
Link to child gauge: Contract Address 0x80aDD8a1BF48AB726b96f19Ae1bF27A39e3C9cbD| OP Mainnet
Link to root gauge: OptimismRootGauge | Address 0xB17F2F3dE17D5013E7cc8ceB4ec2BE02c6cc1501| Etherscan
Rate Provider Review: code-review/rate-providers/stERNRateProvider.md at main · balancer/code-review · GitHub Conclusion: SAFE
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):0xB17F2F3dE17D5013E7cc8ceB4ec2BE02c6cc1501
gaugeType(string): Optimism
Additionally, this pool is requesting core pool status as per BIP-457