# \[BIP-654\] Enable Gauges for baoETH-wstETH, baoETH-rETH, baoUSD-sUSDe, baoUSD-sDAI w 2% cap \[Ethereum\] **URL:** \ **Category:** BAL Gauges\ **Created:** [June 28, 2024, 5:36pm UTC](https://forum.balancer.fi/t/bip-654-enable-gauges-for-baoeth-wsteth-baoeth-reth-baousd-susde-baousd-sdai-w-2-cap-ethereum/5848 "2024-06-28T17:36:24Z")\ **Posts on this page:** 2\ **Page:** 1
**Author:** ![Chickn](https://yyz1.discourse-cdn.com/flex027/user_avatar/forum.balancer.fi/chickn/32/2123_2.png) [@Chickn](https://forum.balancer.fi/u/Chickn)\ **Post date:** [June 28, 2024, 5:36pm UTC](https://forum.balancer.fi/t/bip-654-enable-gauges-for-baoeth-wsteth-baoeth-reth-baousd-susde-baousd-sdai-w-2-cap-ethereum/5848/1 "2024-06-28T17:36:24Z")
### PR with Payload > > > \- add baoETH gauges on mainnet > \- non YB token, no RP needed > \- \[Proposal\](https…://forum.balancer.fi/t/bip-xxx-enable-gauges-for-baoeth-wsteth-baoeth-reth-baousd-susde-baousd-sdai-w-2-cap-ethereum/5848) **Summary:** > This proposal aims to approve the creation of four new gauges on main net with a 2% cap: > > - baoETH-wsETH > - baoETH-rETH > - baoUSD-sUSD > - baoUSD-sDAI **References/Useful links:** > Link to: > > - Website: [https://www.baofinance.io/](https://www.baofinance.io/) > - Documentation: [https://info.bao.finance/docs](https://info.bao.finance/docs) > - Github Page• [Bao.Finance · GitHub](https://github.com/baofinance) > - Communities• [Bao Finance](https://discord.com/invite/BW3P62vJXT), [https://twitter.com/BaoCommunity](https://twitter.com/BaoCommunity) **Protocol Description:** > Bao Finance is a community-run project creating onchain tokenized derivatives (synths) and infrastrcture. Our current synths, baoUSD and baoETH, are backed by ETH based debt positions via our vaults. > > BaoETH is minted by whitelisted contracts, which currently are “the fed” and “ammFED” (AMO). The Bao multisig has control over which contracts are whitelisted. Changes are approved via governance. > > The fed mints synths into our borrow vaults, ready to be borrowed against highly liquid & decentralized ETH based collaterals such as wstETH and rETH. Controlling the available supply also affects the variable loan interest rate, helping maintain the peg. > > The ammFED mints synths directly into balancer liquidity pools containing a backing asset, helping to maintain the peg and profiting from peg deviations. **Motivation:** > Bao has made Balancer our primary source of liquidity for our synths. We have recently adapted our strategy to help with volume and participation from liquidity providers, which includes creating new liquidity pools with the most liquid yield bearing assets we can use in stable pools. **Specifications:** > **Governance:** Bao is governed by the Bao community. Actions voted on are carried out by the community “council of guardians” via its 3/7 multi-sig. This multisig/ council of guardians controls various synth parameters like the mint limit and collaterals. We plan on using governor bravo or similar in the future to improve decentralization. > **Oracles:** Chainlink oracles are used to find collateral prices. > **Audits:** Bao re-uses battle-tested compound, inverse and curve with some changes & has had bug bounties open on immunefi for several years covering all of our live contracts. > **Centralization vectors:** The 3/7 multisig controls various parameters such as collateral factors, IMF factor (CF factor reduces as loan size increases), liquidation incentive, ability to deposit collateral, price oracle, new collateral additions, mint limits and the ammFED. > **Market History:** All Bao’s synths have remained closely pegged to their target prices since inception and have robust mechanisms to help stay pegged. The one historically exception to this was a temporary depeg of baoUSD during USDC’s depeg. Since then all synths no longer accept USDC as collateral, relying on decentralized, highly liquid ETH backed tokens like wstETH, rETH and LUSD instead. > **Value:** Balancer will benefit through trading fees and increased voting incentives for BAL and AURA holders. Bao has a track record of providing vote incentives and building governance power within the Balancer ecosystem. **baoETH-wstETH:** - pool: 0x8296057edb832feac03269e9fce8304ebcbabcaf - gauge: 0x001EDF44D8aa79922dBE74f57C703EbCe2E13B43 **baoETH-rETH:** - pool: 0xabc7d08ef73fe3fb67efd900f4471cca788b0899 - gauge: 0x80f129622dC60f5A7De85cBc98F7e3a99b09E57f **baoUSD-sUSDe:** - pool: 0x79AF734562f741946566D5126bBDed4Cb699E355 - gauge: 0xF91BA601c53F831869DA4aCeAAEc11c479413972 **baoUSD-sDAI** - pool: 0xC5B3F108024da9776D024fD9CEFa4b48e021f1A2 - gauge: 0x17753fC89894A5eBD8b327F7d6121038e9240437 ### Technical Specification The Balancer Maxi LM Multisig `0xc38c5f97B34E175FFd35407fc91a937300E33860` will interact with the GaugeAdderv4 at `0x5DbAd78818D4c8958EfF2d5b95b28385A22113Cd` and call the `addGauge` function with the following arguments: gauge(address):`0x001EDF44D8aa79922dBE74f57C703EbCe2E13B43 ` gaugeType(string): `Ethereum` gauge(address):`0x80f129622dC60f5A7De85cBc98F7e3a99b09E57f ` gaugeType(string): `Ethereum` gauge(address):`0xF91BA601c53F831869DA4aCeAAEc11c479413972 ` gaugeType(string): `Ethereum` gauge(address):`0x17753fC89894A5eBD8b327F7d6121038e9240437` gaugeType(string): `Ethereum` ---
**Author:** ![Xeonus](https://yyz1.discourse-cdn.com/flex027/user_avatar/forum.balancer.fi/xeonus/32/3621_2.png) [@Xeonus](https://forum.balancer.fi/u/Xeonus)\ **Post date:** [July 3, 2024, 6:34pm UTC](https://forum.balancer.fi/t/bip-654-enable-gauges-for-baoeth-wsteth-baoeth-reth-baousd-susde-baousd-sdai-w-2-cap-ethereum/5848/2 "2024-07-03T18:34:07Z")
[https://snapshot.org/#/balancer.eth/proposal/0x2c69e0abd6e4fde8f67812f2636c80ced6e155c14dd64752fe521e26c8f300e0](https://snapshot.org/#/balancer.eth/proposal/0x2c69e0abd6e4fde8f67812f2636c80ced6e155c14dd64752fe521e26c8f300e0)