[BIP-546] Enable weETH/ezETH/rswETH Gauge [Ethereum]

PR with Payload

Summary:
This Proposal is to approve a gauge with a 10% Emission Cap for the LRT Tri-Pool Featuring weETH, ezETH and rswETH. This pool has seen rapid adoption, approaching 20 million within 3 days of launching.

References/Useful links:

Link to:
• Website → swellnetwork.io
• Documentation → docs.swellnetwork.io
• Github Page → Swell · GitHub
• Discord → Swell
• Twitter: https://twitter.com/swellnetworkio?lang=en

Protocol Description:

Swell
Swell DAO launched its LST last year and since has become the 7th Largest LST. In January, Swell Launched its LRT rswETH which has grown to 40 million in TVL. rswETH is a repricing LST whose exchange rate relative to ETH goes up over time as both Beacon Chain rewards and eventually re-staking rewards are earnt.

EtherFi
Reference → [BIP-507] Enable weETH/rETH Gauge w/ 10% Cap [Ethereum]

Renzo
Reference → [BIP-538] Enable ezETH/WETH Gauge [Ethereum]

Motivation:

This pools aims to act as the first Tri-LRT pool in DeFi, leveraging points to drive TVL. The pool wishes to utilize Balancer’s self bribe mechanism to drive Higher TVL to the pool. Due to the pools significant size(20 million), we expect self bribes to come into effect almost straight away.

Specifications:

  1. Governance: Governance will be carried out on the Swell DAO Forum. https://forum.swellnetwork.io/

  2. Oracles:

  • Direct Balance Query: The rswETH token has an internal getRate() function (rate provider) that calls swETH’s own wETHToETHRate() function. See the contract here Contract Link . For this reason the token address can be specified as the rate provider.
  1. Audits: v3-core-public/Audit Reports/Marlin/Sigma_Prime_Swell_Liquid_Restaking_Token_Security_Assessment_Report.pdf at master · SwellNetwork/v3-core-public · GitHub
    Rate provider reviews (all SAFE): weETH - ezETH - rswETH

  2. Centralization vectors: Based on current design, repricing and deposits are done through a centralised bot run by the foundation. Repricing requires off-chain information to be published to the contract. It is not possible to allow others access to this at this time as they could publish incorrect information leading to incorrect repricing rates which could have the primary effect of allowing an attacker to mint an excess of rswETH. The foundation has a path to getting all data needed fully on-chain/decentralised through Chainlink, however this will take some time.

  3. Market History: rswETH has a ~13 million dollar pool paired agains weETH on Curve and have 2 pools on Maverick one rswETH/ETH and one rsweTH/weETH

  4. Value: This is the first Tri-LRT pool and has points commitments from all 3 protocols for the first month. This has lead to the pool already reaching ~20 million of TVL

  5. Link to the pool on Balancer: Balancer

Link to uncapped pool gauge: 0x253ED65fff980AEE7E94a0dC57BE304426048b35

Technical Specification:

Transaction: 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): 0x253ED65fff980AEE7E94a0dC57BE304426048b35

gaugeType(string): Ethereum

2 Likes

I am very excited about this gauge. Prime example of the power of Balancer in terms of composability. It is also great to see how different projects come together to make such an exciting pool for the community :slight_smile:

https://snapshot.org/#/balancer.eth/proposal/0xaa1f9eec0c26d3f50bdc370181836dc4101c15638fbbb5cdeb7727d229597873