[BIP-xxx] Enable bb-i-USD Gauge [zkEVM]

BAL Gauges
1

This proposal is to add a veBAL gauge for the new Idle Boosted pool (bb-i-usd) on Polygon zkEVM and make it a core pool.

This pool is composed of two Idle linear pools. The underlying tokens are USDC and USDT. These linear pools are based on Idle Senior Tranches to earn additional yield.

Given Balancer’s best interest is to attract liquidity into new Boosted pools on zkEVM, this proposal facilitates the creation of high-yield markets that use yield-bearing tokens.

References/Useful links

Idle’s link to:
• Website
• Documentation
• Github Page
• Communiy on Discord

Protocol Description
Idle launched the Best Yield in 2019, a yield aggregation and optimization strategy, allowing LPs to automatically receive the best return across Aave and Compound without the need to monitor the performances of the underlying markets.

In 2021, Idle released Perpetual Yield Tranches, a new risk-tranching primitive to access emerging markets with two different risk-return profiles: Senior and Junior.

This year, Idle merged the power of Best Yield aggregation with the risk-adjusted returns of Perpetual Yield Tranches. Senior Best Yield, the evolution of the original Best Yield, expands the underlying sources by adding Senior Tranches alongside Aave and Compound, maintaining the same conservative risk profile while extending and improving the yield spectrum. Junior Best Yield aggregates multiple Junior Perpetual Yield Tranches to create a seamless yield generation of boosted performances.

Idle’s product suite is governed by Idle DAO, represented by IDLE token holders.

Motivation
After the release of the Balancer boosted pool bb-i-usd on Ethereum, currently sitting at $1.9m liquidity, and the recent 80-20 IDLE/USDC pool, Idle is proud to partner with Balancer to release a new Idle-based boosted pool on zkEVM, improving capital efficiency of AMM liquidity.

Through Idle boosted pools, liquidity providers access outperforming solutions on delta-neutral capital deployments.

The plan is to pair this pool with LSTs like stETH and rETH, fostering trading activities and enhanced liquidity deployments.

Specifications

  1. Governance: USDC is centralized and does not have a governance forum. USDT is the dollar-backed stablecoin issued by Tether. Idle’s governance details can be seen here.
  2. Oracles: Idle does not rely on oracles.
  3. Audits: See Idle’s here
  4. Centralization vectors: USDC and USDT are inherently centralized.
  5. Market History: See USDC here, and USDT here.
  6. Value: The pool aims to become the primary stablecoin pool in zkEVM.

Transaction Specifications
The Balancer Maxi LM Multisig eth:0xc38c5f97B34E175FFd35407fc91a937300E33860 will interact with the GaugeAdderv4 at 0x5DbAd78818D4c8958EfF2d5b95b28385A22113Cd and call the addGauge function with the following arguments:

bb-i-usd:
gauge(address): TBD
gaugeType(string): PolygonZkEvm

2

At the moment we are having a hard time verifying contracts on zkEVM and there is some unexpected behavior in the pools. The recommendation so far has been not approve more gauges/scale up more pools on zkEVM until this is resolved.

Let me check in next week with Balancer Labs and see if the position on this has changed.

At best we would wait to add this gauge until Polygon/Etherscan have deployed required patches and explained the current issues we are seeing.

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