[BIP-584] Enable PRF/WETH (80/20) Gauges with 2% emission cap (Arbitrum)

PR with Payload

Summary:
This proposal suggests activating a Balancer gauge for the PRF/WETH (80/20) pool on Arbitrum.

References/Useful links:

Link to:
• Website: https://parifi.org/
• Documentation: https://docs.parifi.org/
• Github Page: Parifi · GitHub
• Twitter: https://twitter.com/0xParifi
• Discord: Parifi

Protocol Description:

Parifi is a novel perpetual protocol that introduces an innovative pricing mechanism for perpetual contracts. It leverages liquidity curves and on-chain oracles to dynamically adjust prices based on current market conditions. By using advanced mathematical models like parabolic and sigmoid functions, it offers more predictable and stable pricing and fees, considering factors such as liquidity and active trading positions.

Motivation:

Parifi Finance aims to boost liquidity within its Balancer pool. Recent observations indicate that insufficient liquidity has led to price volatility for Parifi. Implementing a gauge and incentives through Hidden Hand could encourage greater liquidity within the Parifi Balancer pool. Parifi DAO initially provided liquidity for the pool and retains a share of the current liquidity. By introducing a gauge and incentives, Parifi DAO could also accumulate BAL tokens through gauge emissions.

Specifications:

  1. Governance: Parifi currently operates with a multi-signature wallet GnosisSafe | Address. The protocol is planning to decentralize strategy management to contributors and transition to decentralized governance in the future.

  2. Oracles: Parifi leverages the Pyth Network’s oracle data in several ways:

  • Adaptive Pricing: By using Pyth’s real-time data, Parifi’s liquidity curves offer accurate and fair prices, adjusted according to market liquidity and volatility.
  • Order Execution: Each trade is confirmed against the latest market data, ensuring that traders get the most current prices at execution time.
  • EMA Integration:** Parifi uses Pyth’s exponentially weighted moving average (EMA) as a secondary check for price verification, ensuring trades are executed within predefined price deviation limits.
  1. Audits: The detailed audit reports for Parifi’s current version are available on our GitHub repository

  2. Centralization vectors: Parifi operates as a decentralized protocol, ensuring decision-making processes are distributed across its network, fostering transparency, resilience, and trust. This aligns with decentralization principles, creating a fair and open environment for all participants.

  • Treasury is 2 of 3 multisig
  • Contributors of the project maintain and deploy new markets for the protocol
  1. Market History: PRF:WETH 80:20 Balancer Pool Link: Balancer

  2. Value: The goal of this pool is to serve as PRF’s primary liquidity source and deepen liquidity. The gauge will be crucial in achieving this objective.

Child gauge: Vyper_contract | Address 0x04d32f27eE3ff5eFbcb855a1c2eE04a6191F23BF | Arbiscan

Root gauge: ArbitrumRootGauge | Address 0x98fbf8Fc81edC411A53db921AB0eB82d97a6f123 | Etherscan

Technical 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): 0x98fbf8Fc81edC411A53db921AB0eB82d97a6f123

gaugeType(string): Arbitrum

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https://snapshot.org/#/balancer.eth/proposal/0xe04f0c88c95f24c1cac5a816f4d702fdbeb2316c1a05bddd307298008b4aceb8

1 Like