# \[BIP-XXX\] Enable wstETH/bb-a-wETH Gauge \[Optimism\]

**URL:** <https://forum.balancer.fi/t/bip-xxx-enable-wsteth-bb-a-weth-gauge-optimism/4626>\
**Category:** BAL Gauges\
**Created:** [April 7, 2023, 3:53pm UTC](https://forum.balancer.fi/t/bip-xxx-enable-wsteth-bb-a-weth-gauge-optimism/4626 "2023-04-07T15:53:22Z")\
**Posts on this page:** 1\
**Page:** 1

<div class="post-metadata">

**Author:** ![Llama](https://yyz1.discourse-cdn.com/flex027/user_avatar/forum.balancer.fi/llama/32/2387_2.png) [@Llama](https://forum.balancer.fi/u/Llama)\
**Post date:** [April 7, 2023, 3:53pm UTC](https://forum.balancer.fi/t/bip-xxx-enable-wsteth-bb-a-weth-gauge-optimism/4626/1 "2023-04-07T15:53:22Z")

</div>

**Summary:**

> The pool wstETH/bb-a-wETH is to replace the [wstETH/wETH](https://op.beets.fi/pool/0x7b50775383d3d6f0215a8f290f2c9e2eebbeceb200020000000000000000008b) pool on Optimism.
> 
> The current wstETH/wETH contains $7.96M in TVL at the time of writing and is the second largest pool on Beethoven’s Optimism deployment.

**References/Useful links:**

> - [Website](https://stake.lido.fi/)
> - [Documentation](https://blog.lido.fi/)
> - [Github Page](https://github.com/lidofinance)
> - [Communities](https://discord.com/invite/lido)

**Protocol Description:**

> This pool utilises wstETH and linear pool bb-a-wETH which deposits wETH into Aave v3 wETH reserve. The linear pool utilises a wrapper developed by Aave Companies.

**Motivation:**

> With the introduction of wstETH to Aave v3 on Optimism, the author expects users to deploy yield maximising strategies that utilise the wstETH/wETH loop. This is expected to generate borrowing demand for wETH and deposit APR for those that deposit wETH into Aave v3.
> 
> Incorporating the bb-a-wETH will lead to additional revenue to Balancer DAO and also additional incentives flowing through to Hidden Hand.
> 
> This pool uses the ComposableStablePoolFactory-v3 1 which addresses the [reentrancy vulnerability](https://forum.balancer.fi/t/reentrancy-vulnerability-scope-expanded/4345) disclosed during February 2023. This gauge is uncapped, and would enter as a “core pool” under [BIP-19](https://forum.balancer.fi/t/bip-19-incentivize-core-pools-l2-usage/3329). This means 65% of 50% of yield generated by this pool is to be used for bribing for votes on it via [Hidden Hand](https://hiddenhand.finance/balancer). The remaining 35% goes to Balancer DAO as revenue.

**Specifications:**

> 1. **Governance:** Find more information about governance on Lido’s [forum](https://research.lido.fi/).
> 2. **Oracles:** Optimism wstETH Oracle, see [here](https://optimistic.etherscan.io/address/0xe59EBa0D492cA53C6f46015EEa00517F2707dc77)
> 3. **Audits:** For [Lido Protocol](https://github.com/lidofinance/audits) and and [Aave v3](https://github.com/aave/aave-v3-core/tree/master/audits)
> 4. **Centralization vectors:** See [here](https://lido.fi/faq).
> 5. **Market History:** See [wstETH](https://www.coingecko.com/en/coins/wrapped-steth) and [wETH](https://www.coingecko.com/en/coins/weth).
> 6. **Value:** Balancer will earn the protocol fee on wstETH yield and deposit yield generated by Aave v3 on Optimism via bb-a-wETH.
> 
> Link to Pool: TBA  
> Link to Gauges: TBA

**Disclosure:**

> This proposal is the sole work of @Llama contributor, @Matthew_Graham, via the legal entity TokenLogic. Llama is a Service Provider to Aave DAO.