[BIP-79] Enable COMP/wstETH Gauge [Ethereum]

BAL Gauges
1

Gauge Proposal Template:

Summary:

This pool uses the new weighted pool factory which allows us to apply the protocol fee to yield bearing tokens. This gauge would enter as a “core pool” under BIP-19, meaning protocol fees earned by this pool would be used to bribe for votes on it. In addition, any COMP collected by the ProtocolFeeCollector would also be used to bribe for votes on this pool for the next two protocol fee distribution periods after approval.

References/Useful links:

Link to:
• Website
• Documentation
• Github Page
• Communities

Protocol Description:

wstETH is liquid staked ETH. COMP is the governance token for Compound.

Motivation:

Balancer has acquired significant COMP/WETH liquidity and this presents an opportunity to bootstrap a yield bearing version with wstETH which should result in higher protocol revenue, plus allows this liquidity to be self-sustaining via BIP-19 in case the large voter supporting COMP/WETH decides to move on. COMP liquidity is fairly thin on-chain, if Balancer can secure our position as the dominant liquidity source it should prove lucrative over the long run.

Specifications:

  1. Governance: Find more information about governance on Lido’s forum.

  2. Oracles: This pool relies on a rate provider for wstETH which Balancer has been using already for awhile. See here.

  3. Audits: See here.

  4. Centralization vectors: See here for information on this.

  5. Market History: See here.

  6. Value: Balancer will earn the protocol fee on wstETH yield. By paring with wstETH we encourage more wstETH trading activity and since wstETH/ETH is one of our largest pools, any increase in trading activity will make wstETH liquidity even more profitable for us. We are already the primary destination for COMP liquidity so moving it over to wstETH should not result in any drop in swap fees.

Link to pool
Link to gauge: 0x9C0f4144D037688e0AdA74B22a9aAb7c14c58e6C

5 Likes
2

https://vote.balancer.fi/#/proposal/0x1eee18291d06e7a4c90104584633f7774cbf319a1bcb3b3ded363daff960db1b

3

I assume the intention is to replace the COMP/ETH gauge
Does that mean there will be another vote to kill the existing gauge, and will we end up with a weel where both are voteable?

4

someone can correct me if i’m wrong, but i don’t believe there are any intentions to kill the comp/eth gauge as of right now

1 Like
5

I second what @zekraken said. With the new pool factories in place, it is only logical to pair tokens such as COMP with yield bearing assets like wstETH. Benefits both LPs and the DAO treasury.
Voters and LPs will decide / have full control where they want to provide liquidity and direct BAL incentives.

2 Likes
6

Got it, basically let the market decide where to go. In theory wstETH should be the better option, but we will see what humpy decides to do with his vote

1 Like