[BIP-97] Enable IB/rETH 50/50 Gauge w/2% emissions cap[Optimism]

[BIP-97] Enable IB/rETH 50/50 Gauge [Optimism]

Summary:

Proposal to add a gauge of IB/rETH 50/50 on Optimism

References/Useful links:

Link to:

Protocol Description:

Motivation/Explain why this pool needs incentivization:

  • We would like to expand our liquidity on OP as we continue to provide IB incentives to drive liquidity into our markets on OP. We plan to provide bribe incentives to veBAL holders once the gauge is active, which will bring in both TVL & trading volumes for the balancer/beets.

Specifications:

  • Governance: Provide current information on the protocol’s governance structure. Provide links to any admin and/or multisig addresses, and describe the powers afforded to these addresses. If there are plans to change the governance system in the future, please explain.

  • Oracles: Does the protocol rely on external oracles? If so, provide details about the oracles and their implementation in the protocol.

  • Audits: Provide links to audit reports and any relevant details about security practices.

  • Centralization vectors: Is there any component of the protocol that has centralization vectors? E.g. if only 1 dev manages the project, that is a centralized vector. If price oracles need to be updated by a bot, that is a centralized vector. If liquidations are done by the protocol, that is also a centralization vector.

    • On IB Optimism, treasury functions and smart contract proxy updates are controlled through a 3/5 multisig
  • Market History: Has the asset observed severe volatility? In the case of stablecoins, has it depegged? In the case of an unpegged asset, have there been extreme price change events in the past? Provide specific information about the Balancer pool: how long has it been active, TVL, historical volume? You must provide a direct link to the pool AND a link to your pool’s gauge.

  • Value: Is this pool intended to be the primary source of liquidity for the token(s)? If this is not the case, explain the expected value add to Balancer (can this pool generate consistent fees?)

    • Yes, this is intended to be the primary source of liquidity for IB.
3 Likes

I think I would only agree to this if there is a cap on this gauge (maybe even a 1% cap). I know it is paired with rETH, but IB has no volume, MC is below 1M, and generally there is not that much interest AFAIK. The pool has had over 100% APR for weeks and the TVL hasn’t moved.

2 Likes

Wouldnt the cap be determined by the votes that are directed to the gauge? Why should there be a hard coded cap on this. If veBAL holders want to vote to direct their power there, they should be able to.

The MC of IB doesn’t seem relevant in this factor either… The trading volume is though, but again, that is for the veBAL holders to determine if they wish to direct their votes to the pool with TVol as it is.

1 Like

see the vote here Snapshot where the community decided to implement a cap system. there is a very lengthy discussion as to the why here [BIP-57] Introduce Gauge Framework v1

2 Likes

apologies. and it is quite lenghtly indeed…

I noticed that the vote was close too, 58% pro.

If this is implemented, and is the standard model. then it must be… right?

1 Like

I’ve updated the OP to include the capped gauge.

Primary reason we have to do this is removing the possibility this pool is targeted for an emissions blackhole. Ultimately IB is small enough that even 2% of our emissions would result in a massive APR, so I don’t see the cap as being an issue here.

1 Like

https://snapshot.org/#/balancer.eth/proposal/0x9eea5df9d4ef873073b7286734abec14e6c91096fccd0b90b54be6ca3c0852ea