[BIP-XXX] Enable Y2K/WETH (80/20) Gauges with 2% emissions cap (Arbitrum)

BAL Gauges
1

Summary:

This is a proposal to enable a Balancer gauge for the 80% Y2K - 20% WETH pool on Arbitrum

References/Useful links:

Link to:
• Website: https://www.y2k.finance/
• Documentation: https://y2k-finance.gitbook.io/y2k-finance/
• Github Page: Y2K Finance · GitHub
• Twitter: https://twitter.com/y2kfinance
• Discord: Discord
• Dune: https://dune.com/toubi/y2kpolicy

Protocol Description:

Y2K Finance is a suite of structured products designed for exotic peg derivatives, that will allow market participants the ability to robustly hedge or speculate on the risk of a particular pegged asset (or basket of pegged assets), deviating from their ‘fair implied market value’. Y2K is the governance token of Y2K finance. Immediately following the Y2K token generation event in December 2022, a Y2K:WETH 80:20 Balancer pool was created and seeded on Arbitrum. Similar to CVX and BAL, Y2K can be locked for 16 or 32 weeks for vlY2K. vlY2K benefits from 50% of protocol fees (see YIP#1 and YIP#2) and Y2K emissions (see YIP#4).

Motivation:

Y2K Finance seeks to increase liquidity in its Balancer pool. As recent weeks have shown, shallow liquidity has resulted in a volatile Y2K price. A gauge and bribes through Hidden Hand would incentivise more liquidity on the Y2K balancer pool. Y2K DAO seeded the initial liquidity in the pool and owns a portion of the existing liquidity. A gauge and bribes would therefore also allow the Y2K DAO to build a BAL position through gauge emissions.

Specifications:

  1. Governance: Y2K currently uses off-chain governance via snapshot: Snapshot. Multisig: GnosisSafeProxy | Address 0x5c84cf4d91dc0acde638363ec804792bb2108258 | Arbiscan
  2. Oracles: Y2K products such as Earthquake make use of oracles to determine the status of pegged assets. Y2K currently only uses Chainlink oracles on Arbitrum mainnet.
  3. Audits: Links to audits can be found here: Audits - Y2K Finance
  4. 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.
  • Treasury is 3 of 7 multisig
  • Core team determines strikes and deploys vault & farming contracts for each epoch
  • Working on decentralising the DAO’s operations
  1. Market History:
    Y2K:WETH 80:20 Balancer
    ArbitrumRootGauge | Address 0xcba9ff45cfb9ce238afde32b0148eb82cbe63562 | Etherscan
  2. Value:
    This pool is the primary source of liquidity for Y2K. Looking to improve that by means of a gauge.
1 Like
2

Hey, do you mind reaching out to me on TG @solarcurve as there are some nuances when dealing with gauges for systems which lock the BPT as yours does. Just want to ensure all will function properly :slight_smile: