[BIP-650] Enable GHO Gauges on Arbitrum

BAL Gauges
1

PR with Payload

Summary

@TokenLogic and @karpatkey proposes creating four new gauges in collaboration with Gyroscope and Balancer.

Four new pools:

GHO/USDe Pool - Range: -50bps to 50bps
GHO/aArbUSDC Pool - Range: -40bps to 2bps
GHO/GYD Pool - Range: -40bps to 2bps
GHO/USDC/USDT Pool - Composable Stable Amp 750

References/Useful links

GHO

GYD

USDe

Protocol Description

GHO & Aave Protocol
The Aave Protocol is a decentralized liquidity protocol that is deployed across many EVM compatible networks including but not limited to Optimism, Arbitrum, Avalanche and Polygon. Currently, the Aave Protocol has a TVL of approximately $10.7 Billion.

GHO is a decentralized multi-collateral stable coin that is fully backed, transparent and native to the Aave Protocol.

USDC
USDC is a digital dollar, also known as a stablecoin, that’s available 24/7 and moves at internet speed. USDC lives natively on the internet, running on many of the world’s most advanced blockchains. Billions of USDC change hands every day1, and every digital dollar of USDC is always redeemable 1:1 for US dollars. - Circle

GYD
GYD is an all-weather stablecoin that provides one-stop access to stablecoin risk control. GYD is fully backed by a set of assets with fundamental innovations in risk control built in at the protocol level to automate diversification and redundancy.

These innovations include automated risk diversification rules, optimized minting and redemption design that guides the protocol on how to use reserve assets to maintain stability, and multiple layers of redundancy in price feeds and circuit breakers.-Gyroscope

USDT

All Tether tokens (USD₮) are pegged at 1-to-1 with a matching fiat currency and are backed 100% by Tether’s reserves.- Tether

USDe & Ethena

Ethena is a synthetic dollar protocol built on Ethereum that provides a crypto-native solution for money not reliant on traditional banking system infrastructure, alongside a globally accessible dollar denominated savings instrument - the ‘Internet Bond’.

Ethena’s synthetic dollar, USDe, provides a stable crypto-native solution for money achieved by delta-hedging staked Ethereum collateral. USDe is fully collateralized and free to compose throughout DeFi.

USDe peg stability is ensured through the use of delta hedging derivatives positions against protocol-held collateral.

Motivation

This proposal aims to add four veBAL gauges:

New Gauges

GHO/USDe Pool - Range: -50bps to 50bps
GHO/aArbUSDC Pool - Range: -40bps to 2bps
GHO/GYD Pool - Range: -40bps to 2bps
GHO/USDC/USDT Pool - Composable Stable Amp 750

Specification

  1. Governance:

  • AAVE, aAAVE and stkAAVE serve as the governance tokens for the Aave DAO. Holders can vote on proposals at both a Snapshot level and through the Aave DAO on-chain governance portal.

  • 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.

  • 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.

  1. Oracles:
  • rateProvider0 (for GHO): 0x0 (none)
  • rateProvider1 (for aArbUSDC):
  • rateProvider0 (for GYD): 0x0 (none)
  • rateProvider0 (for USDe): 0x0 (none)
  • rateProvider0 (for USDC): 0x0 (none)
  • rateProvider0 (for USDT): 0x0 (none)
  1. Audits:

Aave v3

GHO

GYD

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.

USDe

Ethena has undertaken a multi-phased audit program to ensure the highest level of security on the procotol.

  • Phase 1: conducted initial audit with Zellic on the v1 of the protocol where no critical or high level vulnerabilities were found.
  • Phase 2: architecture design review and economic risk factor analysis with Spearbit’s Kurt Barry former Lead Engineer at MakerDAO
  • Phase 3: phased audit with industry leading firms: Quantstamp, Spearbit & Cantina
  • Phase 4: independent audit with Pashov with individual experience of over 50 audits
  • Phase 5: public audit with Code4rena
  • Phase 6: economic and financial risk audit by Chaos Labs
  • Phase 7: upcoming public bug bounty program with Immunefi

Copies of the audits can be found here

  1. Centralization vectors:

  • Aave Governance is decentralized, and all changes must go through a transparent and well-tested governance process.

  • Circle are both centralised entities with control over which addresses can transfer there stable coin.

  • Gyroscope’s GYD, no centralization vectors.

  • Ethena’s USDe, centralizatio vectors can be found here

  • The E-CLP Pool type, the FTL Labs team’s multi-sig can - currently - pause the pool, change the swap fee and set the protocol fee.

  1. Market History:
  • GHO is in the process of being released on Arbitrum.
  • USDC and USDT are widely used across many liquidity pools
  • USDe has relatively short history on Arbitrum.
  • GYD has recently launched on Arbitrum.
  1. Value:
  • These pools are expected to drive meaningful TVL to Balancer and Aura Finance. Liquidity providers can expect to receive, Spin Points from Gyroscope, Sats from Ethena, vlAURA voting support from Balancer Maxi + ALC and ARB from Gyrscope + ALC + Balancer Maxi.

Pool Details

Link to Pool: GHO/USDe Pool - Range: -50bps to 50bps
Link to Gauges: Arbitrum & Ethereum

Link to Pool: GHO/aArbUSDC Pool - Range: -40bps to 2bps
Link to Gauges: Arbitrum & Ethereum

Link to Pool: GHO/GYD Pool - Range: -40bps to 2bps
Link to Gauges: Arbitrum & Ethereum

Link to Pool: GHO/USDC/USDT Pool - Composable Stable
Linke to Gauges: B-GHO-USDC-USDT - Arbitrum - Ethereum

The Balancer Maxi LM Multisig eth:0xc38c5f97B34E175FFd35407fc91a937300E33860 will interact with the GaugeAdderv4 at 0x5DbAd78818D4c8958EfF2d5b95b28385A22113Cd and call the addGauge function with the following arguments:

These pools will be seeded with liquidity just prior to GHO officially launching on Arbitrum.

gauge(address): 0xE03b4CB39C54EedFe4E46677511989866A88dbE3
gaugeType(string): Arbitrum

gauge(address): 0x27213687F92cdA21F10cc09A3e860B6D817Ef096
gaugeType(string): Arbitrum

gauge(address): 0x9434c3955920A1FeD5e28ebCCEF80dCd54DEA180
gaugeType(string): Arbitrum

gauge(address): 0x6DD48C4858dd84738E2A347881D66761C964CE3F
gaugeType(string): Arbitrum

Disclosure

This proposal is the work of TokenLogic and karpatkey who are both Service Providers and delegates within the Aave Ecosystem.

2

We are excited for GHO’s launch on Arbitrum. In terms of governance and for record keeping these GHO gauges were not ready to go to snapshot in week 27 because

  • the GHO token deployment on Arbitrum was still under review and not completed / greenlit in week 26
  • pools were not init joined / seeded with any liquidity as the token was not available yet

As of today GHO has been fully reviewed and is good to go. As soon as these pools have been seeded, the Maxis will make sure the proposals will be included in the next voting cycle.

3

rate provider for stataArbUSDCn (0x87cD462A781c0ca843EAB131Bf368328848bB6fD) has been reviewed internally as safe

4

Very excited to see these pools finally being fully set up. We now successfully launched the GHO pools and seeded more than $800k in liquidity!

5

https://snapshot.org/#/balancer.eth/proposal/0xbe234ab4dfde89eccc57fa93c2ade2a2b4d911e1bcc2b7c99294288f88f89b98