[BIP-95] Enable wstETH/LDO Gauge [Optimism]

BAL Gauges
1

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. See more information on bribes in the “Value” section regarding the mechanism on Optimism, they are unique compared to the other chains.

References/Useful links:

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

Protocol Description:

wstETH is liquid staked ETH. LDO is the Lido Finance governance token.

Motivation:

We are well on our way to become & maintain the number one liquidity destination for wstETH on Optimism. This pool is will support LDO holders in providing a healthy destination for their governance tokens and wstETH. This tightens the partnership with Lido while providing trading routes and deeper liquidity for all parties to benefit from in terms of trade routes and our L2 takeover initiatives.

Specifications:

  1. Governance: Find more information about governance on Lido’s forum.
  2. Oracles: This pool relies on a rate provider for wstETH which the Orb Collective integrations team graciously deployed. See here.
  3. Audits: See here.
  4. Centralization vectors: See here for information on this.
  5. Market History: See here.
  6. Value: We will earn the protocol fee on wstETH yield. Protocol fees on Optimism are split 50% to Balancer (passively to DAO & veBAL) and 50% to BeethovenX. Of BeethovenX’s 50%, half is returned as incentives on Optimism pools either via bribes or direct LM. The other half is split between funding the team and accumulating veBAL/auraBAL/vlAURA per this recent proposal. Thus emissions towards this gauge both benefit passive veBAL and serve to help our flywheel accelerate our growth on Optimism.

Link to pool: 0xc77E5645Dbe48d54afC06655e39D3Fe17eB76C1c
Link to gauge: 0xeC6BA3d9D9045997552155599E6Cc89aA08Ffd76

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