# \[BIP-553\] Enable 50KEP/50rsETH Gauge w/ 2% Cap \[Ethereum\]

**URL:** <https://forum.balancer.fi/t/bip-553-enable-50kep-50rseth-gauge-w-2-cap-ethereum/5591>\
**Category:** BAL Gauges\
**Created:** [February 27, 2024, 11:27pm UTC](https://forum.balancer.fi/t/bip-553-enable-50kep-50rseth-gauge-w-2-cap-ethereum/5591 "2024-02-27T23:27:15Z")\
**Posts on this page:** 2\
**Page:** 1

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**Author:** ![ZenDragon](https://yyz1.discourse-cdn.com/flex027/user_avatar/forum.balancer.fi/zendragon/32/1542_2.png) [@ZenDragon](https://forum.balancer.fi/u/ZenDragon)\
**Post date:** [February 27, 2024, 11:27pm UTC](https://forum.balancer.fi/t/bip-553-enable-50kep-50rseth-gauge-w-2-cap-ethereum/5591/1 "2024-02-27T23:27:15Z")

</div>

### PR with Payload

> <https://github.com/BalancerMaxis/multisig-ops/pull/821>
>
> \- enable 50KEP/50rsETH weighted pool gauge on mainnet with a 2% cap

**Summary:**

> This KEP/rsETH pool to be a 50/50 Weighted Pool.
> 
> This gauge is capped at 2%, and would enter as a “core pool” under [BIP-19](https://forum.balancer.fi/t/bip-19-incentivize-core-pools-l2-usage/3329) on the basis of 1% swap fee and rsETH being an Liquid Restaking Token (LRT) that generates yield.

**References/Useful links:**

> _rsETH_
> 
> - [Website](https://kelpdao.xyz/)
> - [Documentation](https://kelp.gitbook.io/kelp)
> - [Github Page](https://github.com/Kelp-DAO/KelpDAO-contracts)
> - [Discord](https://discord.gg/wfDdcmbMjN)
> - [Twitter](https://twitter.com/KelpDAO)

> _KEP_
> 
> - [Website](https://kelpdao.xyz/)
> - [Documentation](https://hackmd.io/HqMqbFrcQk2IZEv91v7r4Q)
> - [Github Page](https://hackmd.io/HqMqbFrcQk2IZEv91v7r4Q)
> - [Discord](https://discord.gg/wfDdcmbMjN)
> - [Twitter](https://twitter.com/KelpDAO)

**Protocol Description:**

> _rsETH_
> 
> rsETH is the [third](https://defillama.com/protocols/Liquid%20Restaking) largest LST-based liquid restaked token on the EigenLayer ecosystem. It represents the liquidity of the underlying assets that have been deposited on Kelp Protocol. rsETH provides liquidity for the restaked positions, accumulates the rewards, and simplifies rewards management for AVSs.
> 
> Kelp has more than 185,000 ETH worth of assets restaked.
> 
> By providing liquidity for the restaked positions, rsETH allows for a seamless experience to engage with DeFi activities and maximize rewards.
> 
> _KEP_
> 
> KEP is a token representation of Kelp’s EigenLayer Points, where 1 $KEP = 1 EL Point.
> 
> Launch Details can be found [here](https://twitter.com/KelpDAO/status/1760722182869799390).

**Motivation:**

> Kelp is seeking to establish the KEP/rsETH on Balancer as the primary pool for KEP. This pool is expected to experience large trading volume by creating a secondary market for Kelp’s EigenLayer Points.
> 
> Liquidity Providers can expect to receive KEP as well as the normal BAL and AURA rewards.

**Specifications:**

> 1. **Governance:**
> 
> - Kelp currently operates with a multi-sig wallet. The protocol is planning to transition to decentralized governance soon.
> 
> 1. **Oracles:**
> 
> - rateProvider0 (for KEP): 0x0 (none)
> - rateProvider1 (for rsETH): `0x746df66bc1bb361b9e8e2a794c299c3427976e6c`
> 
> 1. **Audits:**
> 
> - Kelp’s smart contracts are audited by Sigma Prime and Code4rena.
> - Sigma Prime Report: [https://kelpdao.xyz/audits/smartcontracts/SigmaPrime.pdf](https://kelpdao.xyz/audits/smartcontracts/SigmaPrime.pdf)
> - Code4rena: [Code4rena | Keeping high severity bugs out of production](https://code4rena.com/reports/2023-11-kelp)
> 
> 1. **Centralization vectors:**  
> Centralization vectors currently are around upgradeability via proxy multi-sig and front-end hosting.
> 
> Our goal is to migrate Kelp away from these vectors.
> 
> 1. **Market History:**
> 
> - KEP is to be launched 28th February 2024.
> - rsETH represents more than 185,000 of restaked ETH and its trading history can be found [here](https://www.coingecko.com/en/coins/kelp-dao-restaked-eth).
> 
> 1. **Value:**
> 
> - This pool is a Core Pool and therefore will generate revenue for the DAO via rsETH derived yield and from the 1% swap fee.

**Pool Details**

> Link to Pool: [0xFf42A9AF956617e4C3532eF2fC7567465EFE4909](https://app.balancer.fi/#/ethereum/pool/0xff42a9af956617e4c3532ef2fc7567465efe4909000200000000000000000672)  
> Link to Gauges: [0xc6b65bc6bF4a5fF4D90fDf7f568cBF8C99419DA1](https://etherscan.io/address/0xc6b65bc6bF4a5fF4D90fDf7f568cBF8C99419DA1)

### 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): `0xc6b65bc6bF4a5fF4D90fDf7f568cBF8C99419DA1`

gaugeType(string): `Ethereum`

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<div class="post-metadata">

**Author:** ![Xeonus](https://yyz1.discourse-cdn.com/flex027/user_avatar/forum.balancer.fi/xeonus/32/3621_2.png) [@Xeonus](https://forum.balancer.fi/u/Xeonus)\
**Post date:** [February 29, 2024, 8:16am UTC](https://forum.balancer.fi/t/bip-553-enable-50kep-50rseth-gauge-w-2-cap-ethereum/5591/2 "2024-02-29T08:16:51Z")

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[https://snapshot.org/#/balancer.eth/proposal/0xc113c844b8cfa02543ecd355d1a57e80523d8f818425335307ed4b37cbdebeae](https://snapshot.org/#/balancer.eth/proposal/0xc113c844b8cfa02543ecd355d1a57e80523d8f818425335307ed4b37cbdebeae)