# \[BIP-869\] Enable AAVE/WETH reCLAMM Gauge on Balancer v3 Ethereum and Arbitrum **URL:** \ **Category:** BAL Gauges\ **Created:** [August 22, 2025, 5:17am UTC](https://forum.balancer.fi/t/bip-869-enable-aave-weth-reclamm-gauge-on-balancer-v3-ethereum-and-arbitrum/6663 "2025-08-22T05:17:24Z")\ **Posts on this page:** 3\ **Page:** 1
**Author:** ![TokenLogic](https://yyz1.discourse-cdn.com/flex027/user_avatar/forum.balancer.fi/tokenlogic/32/2656_2.png) [@TokenLogic](https://forum.balancer.fi/u/TokenLogic)\ **Post date:** [August 22, 2025, 5:17am UTC](https://forum.balancer.fi/t/bip-869-enable-aave-weth-reclamm-gauge-on-balancer-v3-ethereum-and-arbitrum/6663/1 "2025-08-22T05:17:24Z")
### PR with Payload > > > \- \[Proposal\](https://forum.balancer.fi/t/bip-896-enable-aave-weth-reclamm-gauge-…on-balancer-v3-ethereum-and-arbitrum/6663) # Summary > Proposal to add gauge support for the new **AAVE/WETH reCLAMM Pool** on Balancer v3 Ethereum and Arbitrum. > This will be the **first reCLAMM gauge** , marking a milestone for Balancer’s concentrated liquidity design while deepening the integration between Aave and Balancer. # References/Useful links > - [Balancer reCLAMM Overview](https://docs.balancer.fi/concepts/pools/reclamm/) > - [Balancer reCLAMM Technical Reference](https://docs.balancer.fi/reference/contracts/reclamm/) > - [Aave Protocol](https://aave.com/) > - [AAVE Overview](https://aave.tokenlogic.xyz/treasury) # Protocol Description > Describe the proposed asset(s), the corresponding protocol(s), and historic prices of the token (price must come from the source of highest liquidity). # Motivation > ### reCLAMM Pools > > reCLAMM Pools are Balancer’s next-generation concentrated liquidity design, combining the capital efficiency of narrow liquidity ranges with the **automation and fungibility** of Balancer pools. > > Unlike traditional CL designs (e.g., Uniswap v3), where LPs must manually reposition liquidity, reCLAMM pools automatically **re-center** their price range when imbalances occur. This ensures that liquidity remains active and useful without requiring ongoing LP management. > > Key features: > > - **Concentrated liquidity:** higher capital efficiency, tighter spreads, reduced slippage. > - **Automatic re-centering:** no manual upkeep, LPs continue to earn fees. > - **Fungible LP tokens:** gauge-compatible, unlike NFT-based designs. > - **Transparent mechanics:** adjustment logic is fully on-chain and deterministic. > > This makes reCLAMM pools particularly well-suited for **deep, long-term DAO token liquidity**. > > ### The AAVE/WETH Pair > > AAVE/WETH is one of the most important volatile pairs in DeFi. Deep liquidity improves execution for traders, strengthens integrations, and reduces slippage for AAVE holders. > > By deploying the **AAVE/WETH reCLAMM pool on Ethereum mainnet and Arbitrum** , Balancer and Aave together create a **capital-efficient, sustainable trading venue** that will become a cornerstone of AAVE’s on-chain liquidity. # Motivation > This proposal is strategically important for both Balancer and Aave: > > - **First reCLAMM Gauge:** Establishes Balancer as a leader in concentrated liquidity with fungible, gauge-compatible pools. > > - **Efficiency Gains:** Concentrated liquidity ensures better execution, lower slippage, and higher fee generation. > > - **Volume Growth:** Improved execution attracts larger trades, increasing volume and protocol revenue. > > - **DAO Liquidity Standard:** Serves as a blueprint for other DAO tokens to adopt reCLAMM pools. # Specification > ### 1. Governance > > Balancer governance manages the pool factory, parameters, and gauge approval process. > > ### 2. Oracles > > The pool itself does not rely on external oracles, as pricing is determined by pool balances. > > ### 3. Market Context > > - AAVE is one of the most liquid and widely traded governance tokens in DeFi. > - Current liquidity is fragmented across CEXs and DEXs (Balancer v2 and Uniswap v3). > - A Balancer reCLAMM pool provides a superior execution venue with sustainable liquidity for Ethereum. > > ### 4. Value > > The **AAVE/WETH reCLAMM pool** will become a flagship volatile pair on Balancer v3 Ethereum, showcasing the design’s advantages while serving Aave’s liquidity needs. # Technical Specification > - Pool addresses: > Mainnet: [0x9d1fcf346ea1b073de4d5834e25572cc6ad71f4d](https://balancer.fi/pools/ethereum/v3/0x9d1fcf346ea1b073de4d5834e25572cc6ad71f4d) > Arbitrum: [0x5ea58d57952b028c40bd200e5aff20fc4b590f51] > ## Enable Gauges > > The Balancer Maxi LM Multisig `0xC38c5f97B34E175fFf35407fc91a937300E33860` will interact with the GaugeAdderv4 at `0x6E7a5Fa5bfe097d33a6D0ABb1C4e6A48A4eF1c04` on Ethereum and call the `addGauge` function with the following arguments: > gauge(address):0x6bA97C44AecF7CC15B05947c172a6D797cE96693 > gaugeType(string): Ethereum gauge(address):0x3c982431ffDE3447a2086495631d1Af27bD5686D > gaugeType(string): Arbitrum ---
**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:** [August 28, 2025, 6:26am UTC](https://forum.balancer.fi/t/bip-869-enable-aave-weth-reclamm-gauge-on-balancer-v3-ethereum-and-arbitrum/6663/2 "2025-08-28T06:26:03Z")
Edit by Maxis: - assign BIP ID - create gauges and add specifications - add payload ---
**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:** [August 28, 2025, 3:06pm UTC](https://forum.balancer.fi/t/bip-869-enable-aave-weth-reclamm-gauge-on-balancer-v3-ethereum-and-arbitrum/6663/3 "2025-08-28T15:06:31Z")
[https://snapshot.box/#/s:balancer.eth/proposal/0x5bd3f7e5b603be1db78e4a21ddd52e4aa8a79948c7521f3a5a8dbfce1350e7ca](https://snapshot.box/#/s:balancer.eth/proposal/0x5bd3f7e5b603be1db78e4a21ddd52e4aa8a79948c7521f3a5a8dbfce1350e7ca)