Summary:
This pool uses the new weighted pool factory which allows us to apply the protocol fee to yield bearing tokens. Users and the protocol will be earning yield on the wstETH portion of this pool, making the token pairing more efficient for both parties. 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. Since all fees collected on Arbitrum are distributed through bribes, this pool will also receive bribes from those fees in proportion to this pool’s TVL relative to other Arbitrum core pool TVL.
References/Useful links:
Link to:
• Website
• Documentation
• Github Page
• Communities
• Other useful links?
Protocol Description:
wstETH is liquid staked ETH. LDO is the governance token for Lido Finance.
Motivation:
One of Balancer’s near term strategic objectives is to attract more yield bearing liquidity. The launch of wstETH on Arbitrum has been a success thus far in making Balancer the main liquidity destination for wstETH. Adding this wstETH/LDO pool will help generate additional trading volumes, add a diversification strategy for Lido supporters, and encourage other projects to also pair against wstETH.
Specifications:
- Governance: Find more information about governance on Lido’s forum.
- Oracles: This pool relies on a rate provider for wstETH which the Orb Collective integrations team graciously deployed. See here.
- Audits: See here.
- Centralization vectors: See here for information on this.
- Market History: See here.
- Value: Balancer will earn the protocol fee on wstETH yield. Lido supporters likely hold both LDO and wstETH making this pool a popular destination for them to park their liquidity. Trading routes and share of the layer 2 LDO market will be a benefit for Balancer as well.
Link to pool: 0x13F2f70A951FB99d48ede6E25B0bdF06914db33F
Link to gauge: 0x79C14b9655e1C4AB42836768b8938357cD8Fc5d3