[BIP-698] Enable Gauge for wrsETH/wstETH [Optimism]
PR with Payload
Summary:
This is a proposal to enable uncapped Balancer gauge for wrsETH/wstETH pool on Optimism.
References/Useful links:
• Website
• Documentation
• Twitter
Protocol Description:
rsETH is one of the largest LST-based liquid restaked tokens on the EigenLayer ecosystem. It represents the liquidity of the underlying assets that have been deposited on Kelp. rsETH provides liquidity for the restaked positions, accumulates the rewards, and simplifies rewards management for AVSs. By providing liquidity for the restaked positions, wrsETH allows for a seamless experience to engage with DeFi activities and maximize rewards.
stETH is a rebase token by Lido that also represents staked ether but instead of the exchange rate accumulation method, the staking rewards are given as extra stETH. Effectively, stETH always stays pegged 1:1 with ETH and stETH token balances are updated when the oracle reports the change in the total (initial deposit + staking rewards) every day. wstETH is the wrapped version of regular stETH which allows for stETH accumulation in the contract and turns the rebase model of stETH into the C-token model of other LSTs.
Motivation:
Develop additional liquidity for wrsETH on Optimism
Specifications:
-
Governance: Kelp currently operates with a multi-sig wallet. The protocol is planning to transition to decentralized governance.
-
Oracles:
wrsETH rate provider
wstETH rate provider
- Audits:
Kelp’s smart contracts are audited by Sigma Prime and Code4rena
- Centralization vectors:
Centralization vectors currently are around upgradeability via proxy multi-sig and front-end hosting.
- Market History:
Kelp has seen meteoric growth in TVL in the last few weeks with TVL over 260k ETH and >50,000 holders of rsETH across mainnet and L2s.
- Value:
The wrsETH/wstETH pool is intended to grow into a major liquidity source for wrsETH or Optimism. Pairing with wstETH will give the pool good routing and ought to provide high protocol fees.
Contracts:
wrsETH contract
wrsETH rate provider
wstETH contract
wstETH rate provider
Pool link
Pool contract
Child gauge on Optimism
Root gauge on Ethereum
Specification:
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): 0xf99b2f358efec751a9071f30e541ab6c42c25b93
gaugeType(string): Optimism