[BIP-595] Enable Gauge for sDAI / aUSDC pool on Optimism

Payload with PR


This proposal seeks a Balancer Gauge for an sDAI/aUSDC pool on Optimism, with uncapped emissions. The pool is yield bearing and will be considered a core pool.

The underlying pools are Rehype Pools, an extension of Gyroscope’s E-CLPs. Rehype Pools auto-rehypothecate E-CLP assets to Aave and can thus accrue yield from three different sources: (1) Aave lending deposit yield, (2) swap yields from asymmetric concentrated liquidity, and (3) yield from third-party token incentive markets.

References/Useful links:

Website: https://spark.fi/

Documentation: https://docs.spark.fi/

Twitter: https://twitter.com/sparkdotfi

Protocol Description:

Savings Dai (sDAI) is a tokenized representation of Dai deposited in the Dai Savings Rate (DSR) offered by MakerDAO. The sDAI token enables users to receive returns on their DSR deposits while still being able to transfer, stake, lend and use it in any way they want.

sDAI increases in value according to the DSR, as its Dai denominated value gradually increases over time. sDAI is an accumulating token, not a rebasing token. Each sDAI is fungible and always instantly redeemable for DAI.

To acquire sDAI you can deposit Dai and other stablecoins using the Spark App.


Spark is seeking to establish Balancer and Gyroscope as its primary liquidity sources for sDAI on the Superchain - Optimism and Base. This move aims to enhance the trading experience across the Ethereum ecosystem, making it more accessible for users while generating additional value to the sDAI community.


Savings Dai (sDAI) is an ERC-4626 representation/wrapper of DAI in the Dai Savings Rate module (DSR). sDAI allows users to deposit DAI to receive the yield generated by the Maker protocol while still being able to transfer, stake, lend and any other use cases. “Swapping” between DAI and sDAI does not need to be done via a DEX but can be achieved by depositing and withdrawing from the DSR module.

Governance: Maker DAO is a complex and robust Defi ecosystem. Their current governance module can be seen here.

Oracles: This pool relies on the SavingsDAIRateProvider 1 to account for the yield accrued by sDAI. This have been reviewed and deemed SAFE by the integrations team here.

Audits: MakerDAO audit reports can be seen here. Frax Finance Audits can be seen here.

Centralization vectors: Maker Governance is decentralized and has no apparent centralization vectors. The underlying stablecoins USDT, DAI, and USDC are also exposed to their own centralization risks.

Market History: sDAI history can be seen on coingecko.

Value: Yield bearing assets increase the value proposition for liquidity providers, and the revenue for the DAO when properly configured. These pools will grow stablecoin liquidity for Balancer, while tapping into the yield source of sDAI and aUSDC.


sDAI on Optimism: 0x2218a117083f5B482B0bB821d27056Ba9c04b1D3

sDAI/aUSDC Optimism pool on Gyro: Gyroscope Protocol

Child chain gauge: [Vyper_contract | Address 0xC9B49E2Ae035De1CFA69B4d524A8B5cfedc1a340 | OP Mainnet Etherscan ]

Mainnet root: [OptimismRootGauge | Address 0x9dE7f79Ef7f28447E90051b60aBC5c2b1AdFE1cf | Etherscan]

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): 0x9dE7f79Ef7f28447E90051b60aBC5c2b1AdFE1cf

gaugeType(string): Optimism