[BIP-XXX] Enable yBAL / 80-20BAL-wETH [Ethereum]

BAL Gauges
1

Summary:

Add gauge for the 80-BAL-20-WETH / yBAL composible stableswap pool to gauge controller
Pool: 0xD61e198e139369a40818FE05F5d5e6e045Cd6eaF
Gauge: 0xb3CA475746591878e8AAd9710b402eeb4470784a

References/Useful links:

Link to:
• yearn.fi
• Documentation
• Github
• Discord

Protocol Description:

Yearn’s yBAL is Yearn’s liquid veBAL wrapper product. The yBAL system features the same mechanics as Yearn’s yCRV, but adapted to work within the Balancer ecosystem.

Users can mint yBAL tokens by locking their 80-20 BAL-WETH tokens to Yearn’s whitelisted voter (note: This action is irreversible).

Upon minting yBAL, users can stake their yBAL into st-yBAL to passively earn yield. This yield comes from all incentives earned to Yearn’s voter (e.g. bribes and protocol fees), and is automatically compounded back into yBAL increase each st-yBAL user’s position.

Motivation:

Incentivization to this pool will help drive liquidity for users who may wish to swap into or out of their yBAL position. We expect yBAL to increase the total locked tokens in veBAL and help users earn passive yield.

Specifications:

  1. Governance: yBAL is designed to be a maximally trustless system with governance powers reserved to veYFI users. Some actions are available to the multisig, for example, to change strategies and gauge votes.

  2. Oracles: yBAL does not depend on any oracle systems.

  3. Audits: yBAL is a fork of yCRV which was audited by ChainSecurity link here

  4. Centralization vectors: Similar to all other liquid wrappers, the whitelisted contract utilized by Yearn to lock veBAL is owned/operated by the protocols’ governance multisig. Yearn’s multisig has a 6 of 9 threshold with well-known members of the broader Ethereum ecosystem.

  5. Market History: yBAL has limited history, as it is a new protocol in the process of bootstrapping. However, we can look to yCRV’s price performance in comparison of other liquid CRV wrappers. This chart from Defi Wars shows their price performance relative to the 1:1 peg

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  6. Value: This pool is intended to be the primary liquidity source for yBAL.

The Balancer Maxi LM Multisig eth:0xc38c5f97B34E175FFd35407fc91a937300E33860 will interact with the GaugeAdderv3 0x5efBb12F01f27F0E020565866effC1dA491E91A4 and call the addEthereumGauge function with the following argument:

0xb3CA475746591878e8AAd9710b402eeb4470784a which corresponds to the capped gauge for this pool.

2 Likes
2

Hi! What is the cap for this gauge? 10%? 2%?

3

How does one deposit 8020 into yBAL? I don’t see any mention to it on yearn’s UI or the docs.

4

As I recall Yearn agreed in prior governance to a 2% cap for their gauge.

It’s also worth noting that as of a few weeks ago, new gauges are being used. These new gauge contracts support changing the cap without deployment/migration, so it is much easier to start with a lower cap and then apply to governance to raise it now.

Happy days :slight_smile:

5

This gauge is capped at 2% based on the address presented above, https://etherscan.io/address/0xb3CA475746591878e8AAd9710b402eeb4470784a#readContract#F9 so no quarrels there. Would also like to see the interface or contracts of how a user can obtain yBAL as Markus mentions. A factor is 30, if anyone was curious.

4 Likes
6

Hi @markus !

To mint yBAL, you can visit the yBAL token contract and mint 1:1 against any amount of 80-20 BAL-WETH LP tokens you hold.

Of course, depending on current liquidity, some users may find that swapping into yBAL will get them a better rate.

When minting 1:1, under the hood, those tokens get locked to Yearn’s voter and you now have yBAL in your wallet that you can either:

  • LP
  • deposit into st-yBAL to receive all yield (fees, bribes, etc) from Yearn’s voter position
1 Like
7

We are working on the UI, and should have it up shortly after our custom zap contract is completed with security review…