Summary
This proposal seeks governance approval to deploy and operate Balancer v3 on X Layer, OKX’s chain through a multi-stage deployment. The approach initially grants all operational permissions to Balancer Onchain Limited, enabling us to operate with flexibility and responsiveness in the rapidly evolving multi-chain landscape while establishing meaningful success criteria for each deployment phase.
Rationale
With X Layer preparing for launch and Aave already publicly confirmed as a launch partner, Balancer has a strategic opportunity to integrate into a new ecosystem with strong ambitions around payments, DeFi adoption, and liquidity growth.
X Layer’s vision is to serve as a general-purpose platform for payments and DeFi, connecting users and businesses with on-chain opportunities. Its focus is on building infrastructure that enhances both financial accessibility and scalable DeFi applications. Balancer Protocol is positioned to become a key pillar of this ecosystem.
Balancer has consistently proven to be the liquidity backbone wherever Aave deploys. Entering X Layer early allows us to secure a foundational role before competing AMMs gain traction, while demonstrating the unique advantages of v3 — boosted stable pools, reCLAMM, and flexible pool design.
The phased approach, with clear checkpoints, ensures the DAO balances opportunity with prudence. We scale deeper into the ecosystem if targets are met, and can pause or redirect resources if they are not.
For X Layer, having Balancer at launch means gaining a liquidity hub that can power payments and DeFi use cases at scale. By anchoring alongside Aave, Balancer helps X Layer demonstrate to users, builders, and institutions that the ecosystem is backed by proven DeFi infrastructure from day one.
Launch Scope
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Standard Balancer v3 contracts: Boosted, Stable, Weighted, Stable Surge, and reCLAMM pools
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Day-one pools: TBD (to be finalized with partners)
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Reward distribution infrastructure and veBAL voting integration live after first checkpoint
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Admin and safety:
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Initial admin privileges: Omni multisig
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Dedicated emergency multisig set up
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After Month 6 checkpoint: migrate operational permissions to Balancer Onchain Limited
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Checkpoints
Month 1 checkpoint
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At least $40M TVL in total
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Day-one pools live + at least 5 supporting pools
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Minimum 15% liquidity utilization (5-day average)
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Minimum of $6k in revenue to the DAO
Decision: If reached, confirm X Layer as a strategic deployment and continue deeper tokenomics integration. If not, reassess and consider winding down incentives and gauges.
Month 3 checkpoint
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At least $75M TVL in total
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Minimum of $15k in DAO revenue from fees
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At least 5 pools with $10M+ TVL each
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Balancer’s reward injector infrastructure live and incentives program aligned
Decision: If reached, confirm X Layer as a strategic deployment and deepen tokenomics integration. If not, reassess as above.
Month 6 checkpoint
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At least $150M TVL in total
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Minimum of $60k in DAO revenue from fees
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At least 10 pools with $10M+ TVL each
Decision: If reached, confirm X Layer as a strategic deployment and deepen tokenomics integration. If not, reassess as above.
Risks and Mitigations
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Performance risk: If goals fall short, Balancer can pause further development and reassess at each checkpoint.
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Security: Only audited v3 contracts deployed. Emergency permissions assigned to a dedicated emergency multisig, consistent with other chain deployments.
Treasury Impact
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No direct ask to the Balancer Treasury at launch.
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Any future funding request will come as a separate BIP, framed with ROI considerations.
Conclusion
Deploying Balancer v3 on X Layer gives the DAO a chance to establish a leading role on a chain with clear partner backing and measurable commitments. By starting lean, anchoring alongside Aave, and setting checkpoints with defined success criteria, we maximize upside while managing risk.
Approval of this proposal signals to the X Layer community that Balancer sees this chain as a serious, long-term home for liquidity. Together, we can showcase how programmable liquidity and strong payment rails combine to unlock the next wave of DeFi adoption. It also signals Balancer DAO’s intent to expand into a promising new ecosystem while retaining flexibility. If X Layer delivers on its potential and Balancer meets the outlined targets, we will secure a central position in its liquidity stack and further strengthen our multi-chain strategy.