[BIP-619] Enable Gauge for sUSDe/wstETH [Ethereum]

BAL Gauges
1

PR with Payload

Summary:

Enable the gauge for sUSDe/wstETH pool (ethena staked usd + lido staked eth), with uncapped emissions.

References/Useful links:

Link to:
https://ethena.fi/
https://lido.fi/

Protocol Description:

This is the ultimate pool for the largest onchain staked assets (ETH&USD) with 50% eth staked on lido and 50% usd staked with ethena, it will generate good yields even if the price is stable and it will generate even better yields if the price of eth is moving in any direction.

Motivation:

To make it easier for users to trade between the highest yielding and largest tokens on the chain, ETH and USD, without needing to deal with complex un-staking between trades. These assets will probably just increase in trading activity and it is great for balancer to have a part of this activity.

Specifications:
USDe derives its peg stability from executing automated and programmatic delta-neutral hedges with respect to the underlying collateral assets.

Hedging the price change risk of the collateral asset in the same size ensures the change in value of the collateral asset is offset by the change in value of the hedging leg.

This ensures the synthetic USD value of the collateral remains relatively stable in all market conditions.

Lido stakes the ETH supplied to them and provides a token that is possible to exchange for the underlying staked ETH.

  1. Governance:
    Ethena currently operates with a multi-signature wallet, featuring doxxed founding contributors. The protocol is planning to decentralize strategy management to shards holders and transition to decentralized governance in the future.
    Lido also uses a multi sig, but it is widely trsuted withing the crypto ecosystem.

  2. Oracles: Lido have a oracle to check how much one wstETH is worth in ETH terms, Ethena uses only centralized price feeds and no onchain oracles.

  3. Audits:
    Ethena: Audits | Ethena Labs
    Lido: GitHub - lidofinance/audits

  4. Centralization vectors: Yes both Lido and Ethena uses many centralized parts in their protocols, but they are generally trusted in the crypto ecosystem and already have their tokens in many pools on balancer.

  5. Market History: It is similar market volatility as ETH/USD, if a hack, black swan or something else un-predicted would happen in the future, there is a risk of large market volatility.

  6. Value: The most traded pair on the ethereum network is the ETH/USD pair. Now when it’s possible to stake both tokens and earn large rewards, more and more pople will find this pool very valuable to not have to unstake tokens to trade, especially because sUSDe have a waiting period of 7 days to unstake.

Balancer sUSDe/wstETH pool: Balancer

Mainnet gauge address: Vyper_contract | Address 0xbd00C7CBE59DDDBD784c899aC173B7Ba514B9997 | Etherscan

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): 0xbd00C7CBE59DDDBD784c899aC173B7Ba514B9997

gaugeType(string): Ethereum

2

Thanks for this proposal. Is there any intention or plan for voting incentives or direction of incentives via a vlAura or veBAL position towards this pool?

1 Like
3

I don’t own any veBAL or vlAURA to vote for the pool if that is what you mean.
I might use hiddenhand bribe for the gauge if the gague is accepted.

If this is not what you meant, please let me know.

2 Likes
4

Note that this pool was configured as a a standard weighted pool without any rate providers. Therefore, this pool will not be flagged as core pool

5

https://snapshot.org/#/balancer.eth/proposal/0xc2914f9b68295c5934a8c87a168625d64f9b65abe45df1dfa1e87e2f9f3a6fec

1 Like