[BIP-642] Enable GYD/aUSDC and GYD/aUSDT Rehype gauges [Arbitrum]

BAL Gauges
1

PR with Payload

Summary

This is a proposal to enable two uncapped Balancer gauges for (1) GYD/aUSDC and (2) GYD/aUSDT Rehype Pools on Arbitrum.

Since Gyroscope is managing these pools instead of the Balancer DAO we propose to start with a protocol fee of 50%, but further explore decreasing the protocol fee to 30%. The protocol fee shall kick in as soon as rewards start. With a lower protocol fee LP yield can be sustainably increased, helping to bootstrap the specified Rehype Pools.

References/Useful links

Protocol description

  • stataArbUSDT (or in short, aUSDT) is the wrapped, static version of the rebasing Aave lending deposit token for aUSDT on Arbitrum. - Aave
  • stataArbUSDCn (or in short, aUSDC) is the wrapped, static version of the rebasing Aave lending deposit token for aUSDC on Arbitrum. - Aave
  • GYD is a USD denominated stablecoin, issued by the Gyroscope protocol

Motivation

Gyroscope wants to obtain the option to participate in voting markets for two previously deployed pools.

Specifications

Governance

The Gyroscope Protocol will be governed by a DAO and relevant stakeholder with the full launch on Ethereum. For now, the FTL Labs multi-sig can pause the pool, change the swap fee and set the protocol fee. As a custom pool by Gyroscope, the E-CLP will be controlled by Gyroscope governance upon its launch.

Oracles

Audits

Audit reports by Nethermind, Trail of Bits, and Runtime Verification can be accessed here (the E-CLP is called the “CEMM” in these reports). In addition, the E-CLP code has been live in production on Polygon since November 2022.

Centralization vectors

No centralization vectors. The FTL Labs team’s multi-sig can - currently - pause the pool, change the swap fee and set the protocol fee.

Market History

  • The Gyroscope Protocol is live on Ethereum since EOY23, with E-CLPs on several other chains. Details available here .
  • The live GYD/aUSDC pool
  • The live GYD/aUSDT pool

Value

As per “Motivation”.

Contracts

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): 0x7E123aD65cc842AB93bf2Dc79A8eadE8975bd3Cb
gaugeType(string): Arbitrum
gauge(address): 0xd384F6aC540eFeF9378cf8F6453Ad38A696411b5
gaugeType(string): Arbitrum

2

The Maxis will advise Gyro in how to best leverage the fee setting configuration as this has a direct impact on STIP and therefore ARB distributions based on how many fees are collected for a given epoch.

https://snapshot.org/#/balancer.eth/proposal/0x10585abab78a11083e94b2bf09c7f5c4f9c6cbf3cbfd816fc75d6595c680c581