[BIP-XXX] FIAT Gauge Migration [Ethereum]

BAL Gauges
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Motivation

FIAT is a stable token which has healthily maintained peg and brought diversity to Balancer’s ecosystem. See the original gauge proposal here for the standard references of the history between the two entities and more information on FIAT’s structure. This proposal will effectively kill the FIAT/USDC/DAI pool gauge and activate the FIAT/bb-a-usd gauge in its place.

The pairing of FIAT with bb-a-usd benefits all parties by tapping into Balancer’s boosted pool architecture. The yield bearing nature is more capital efficient for the LPs and Balancer overall. The new pool & gauge will be eligible for core pool status due to this change, making it a win-win for FIAT and veBAL holders. Both gauges cannot exist therefore the prior must be killed and new pool’s gauge activated.

Specification

Fiat Pool/Gauge Migration

Current Pool Address: 0x178E029173417b1F9C8bC16DCeC6f697bC323746
Current Gauge Address: 0xDD4Db3ff8A37FE418dB6FF34fC316655528B6bbC

New Pool Address: 0xaC976bb42cb0C85635644E8c7c74D0E0286aA61C
New Gauge Address: 0xf84f835B54C20cdf7b1B51309934F3314DCC6ed0

Killing Current Gauge

If approved, the DAO Multisig 0x10A19e7eE7d7F8a52822f6817de8ea18204F2e4f will interact with the AuthorizerAdaptor at 0x8F42aDBbA1B16EaAE3BB5754915E0D06059aDd75 and call performAction using 0xab8f0945 for the data(bytes) argument and the following contract for the target(address) argument. This will require one transaction.

[Ethereum] FIAT/USDC/DAI – 0xDD4Db3ff8A37FE418dB6FF34fC316655528B6bbC

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Great proposal. Absolutely in favor as it covers advantages for both the DAO and stakers

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EDIT: Please note that we currently rely specifically on the FIAT-USDC-DAI pool for a releveraging flow we’re opening to users at the end of the month. We ask that implementation of this path, should it be approved, be held off until the FIAT DAO team confirms that doing so would not break the releveraging flow. FYI @solarcurve

Also adding here that we will be supporting fixed term deposits into the bb-a-USD pools as collateral shortly via collaboration with Yearn Finance, Aura, and Element Finance: Element DAO proposal: EGP-14: Onboard yvBalancer-BoostedAaveUSD [2nd Vote] (snapshot.org)

The deeper liquidity gets for $FIAT, the easier it becomes for users to borrow against bb-a-USD LP positions as collateral. I won’t use the F word given market conditions, but the positive feedback resulting from more efficient $FIAT liquidity should be apparent.

And lastly, our V2 should be of significant interest to the Balancer community.

  • Certain LP positions serving as reserve assets
  • Borrowing facilities for any LP positions
  • Boosted pool strategies for gas tokens, stablecoins

You can read more about it here: FIAT II: A Permissionless Credit Marketplace

2 Likes