[BIP-759] Deploy 50K GHO into the v3 Buffer Router Contract

General Chat Karpatkey Updates
1

Abstract

This proposal seeks approval to deploy 50,000 GHO into the Buffer contract as part of the Balancer V3 launch strategy. Liquidity buffers facilitate liquidity provisioning and operational efficiency, we propose seeding this contract with 50k GHO to initialise and support Balancer’s broader ecosystem goals.

Motivation

As part of the Balancer V3 launch, liquidity buffers are critical for efficient swaps involving vault tokens. These buffers enable users to enter vault token positions (e.g., waDAI) without incurring high gas costs from direct wrapping or unwrapping operations.

Deploying GHO into the Buffer contract will initialise the liquidity buffer for GHO, ensuring readiness for the Lido market, enhancing yield strategies and providing gas-efficient trade paths.

Specification

  1. The managed Treasury will liquidate USDC lent in Aave V3, and buy 50,000 GHO through CoW swap.
  2. Through the payload in the PR, the managed Treasury will:

    1. Call approve on GHO token 0x40D16FC0246aD3160Ccc09B8D0D3A2cD28aE6C2f, passing Permit2 0x000000000022D473030F116dDEE9F6B43aC78BA3 as the spender and amount as 50000000000000000000000.

    2. Call approve on Permit2 with the following arguments, to approve the BufferRouter as a spender for GHO.

      “token”: “0x40D16FC0246aD3160Ccc09B8D0D3A2cD28aE6C2f”,
      “spender”: “0x9179C06629ef7f17Cb5759F501D89997FE0E7b45”,
      “amount”: “50000000000000000000000”,
      “expiration”: “1739664611”.

    3. Call initializeBuffer on the BufferRouter, passing wrappedToken as Lido boosted GHO 0xC71Ea051a5F82c67ADcF634c36FFE6334793D24C, exactAmountUnderlyingIn: 50000000000000000000000, exactAmountWrappedIn: 0,
      minIssuedShares 49975000000000000000000.

PR with payload

This is the payload to be executed through the managed Treasury, given this is a one-time transaction it must be executed via the DAO signers, and will not be processed through the Zodiac Roles Modifier.

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Thanks a lot for putting this together! This is critical in ensuring good trading by seeding the buffers on Ethereum mainnet.

https://snapshot.org/#/s:balancer.eth/proposal/0x60f5d5069245aca63d76345798953502f0cdc7019f12b13eb720c4ca33c66950

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Due to high demand for the GHO buffer to be initialized and the permsionless nature of Balancer, the Aave Prime GHO was seeded over this past weekend. Due to this, the payload to allocate 50k GHO into the buffer must be adjusted based on the live balances of the buffer at the time of execution. In this instance, I suggest using 49.95K GHO in order to account for any diverging value of the yield bearing counterpart when wrapping and getting the desired amount of bufferShares.

In order to properly execute this transaction the DAO multisig loader/signers must simulate this query with up to date block number and timestamps to generate the amounts of wrapped and unwrapped GHO they will need to a executable addition of liquidity.

Upon doing so they will adjust approvals and deposits transactions into the wrapper (using convertToShares as a confirmation), permit2, and the buffer in order to get successful execution. Similar to the attached payload and simulation.

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