PR with Payload
Summary
This publication proposed enabling new rETH/aWETH gauges for Composable Stable pool on Balancer v3 for Arbitrum, Base and Optimism.
References/Useful Links
Protocol Description
Rocket Pool is a decentralized Ethereum staking protocol that allows users to stake ETH and receive rETH, a liquid staking token representing their staked ETH plus accrued rewards. The protocol is designed to be community-owned, decentralized, and trustless, aligning with Ethereum’s core principles.
rETH accrues staking rewards over time, reflecting the performance of the underlying validators operated by a decentralized network of node operators. Users can stake as little as 0.01 ETH, making staking accessible to a broader audience.
Rocket Pool’s governance is managed by the Protocol DAO (pDAO), which oversees protocol parameters and upgrades, ensuring that the protocol remains community-driven and secure.
For more details, see the Rocket Pool Documentation.
Motivation
Transitioning from Balancer v2 to Balancer v3 with an Aave Boosted pool will enhance the capital efficiency of the rETH liquidity pools. The integration of aWETH (aArbWETH; aBasWETH, aOptWETH), which earns native yield from Aave, reduces the overall incentive cost and provides liquidity providers with additional yield opportunities.
The new rETH/aWETH pools will serve as the primary liquidity venue for rETH on L2s, replacing the existing v2 pool. The higher amplification factor in the Composable Stable pool is expected to improve liquidity depth and trading efficiency, benefiting users interacting with Aave-based strategies.
A gauge is essential to bootstrap TVL, encourage liquidity depth, and support broader DeFi integrations for rETH.
Specifications
1. Governance
Rocket Pool’s governance is managed by the Protocol DAO (pDAO), comprising RPL token holders who vote on protocol upgrades and parameter changes. This decentralized governance model ensures that the protocol remains aligned with the interests of its community.
2. Oracles
Rocket Pool utilizes a decentralized oracle network operated by the Oracle DAO (oDAO), which consists of independent node operators. These oracles are responsible for reporting validator balances and other critical data to the protocol’s smart contracts, ensuring accurate and reliable operations.
3. Audits
Rocket Pool’s smart contracts have undergone multiple audits to ensure security and reliability. Audit reports are available in the Rocket Pool GitHub repository.
4. Centralization Vectors
Rocket Pool is designed to minimize centralization risks. Governance decisions are executed by the pDAO, and the oracle network is decentralized across multiple independent operators, ensuring robust security and trustlessness throughout the protocol.
5. Market History
The existing Balancer v2 rETH/WETH pools have demonstrated strong performance, serving as a significant liquidity venue for rETH. Transitioning to a Balancer v3 Aave Boosted pool is expected to further enhance liquidity and efficiency.
6. Value
The rETH/aWETH pool will become the primary liquidity hub for rETH on L2s, facilitating seamless integrations with DeFi protocols that utilize aWETH. Establishing deep liquidity in this pool is critical for efficient swaps and the ease of leveraging or unwinding on lending protocols.
Specification
Following root gauges need to be added to the gauge controller
| Chain | Pool | Pool Address | Root Gauge |
|---|---|---|---|
| Arbitrum | v3 rETH/aave-WETH | 0x5418a64e0cdb20548ACB394f5D00a089BAf02161 | 0xac3b3fff577561c58f126e4f6375f56476dd9fdb |
| Base | v3 rETH/aave-WETH | 0xB7B8B3AfC010169779C5C2385ec0eB0477FE3347 | 0x31ccb4e5005fd37005523e6e3f1d084f9abe25b6 |
| Optimism | v3 rETH/aave-WETH | 0x870c0Af8A1af0B58b4b0bD31CE4fe72864ae45BE | 0xd606ea6f6d93d90efafc7d21972353fb98205eb8 |
Enable Gauges
The Balancer Maxi LM Multisig 0xc38c5f97B34E175FFd35407fc91a937300E33860 will interact with the GaugeAdderv4 at 0x5DbAd78818D4c8958EfF2d5b95b28385A22113Cd and call the addGauge function with the following arguments:
gauge(address):0xac3b3fff577561c58f126e4f6375f56476dd9fdb
gaugeType(string): Arbitrum
gauge(address):0x31ccb4e5005fd37005523e6e3f1d084f9abe25b6
gaugeType(string): Base
gauge(address):0xd606ea6f6d93d90efafc7d21972353fb98205eb8
gaugeType(string): Optimism