Summary
This proposal requests to increase the gauge cap for the GOLD/st-yETH pool (Gauge: 0xC219821b1FE1bBe436f62D911F00Ef1C8542A8F7) from 10% to 15%. This change aims to better reflect the pool’s value to the Balancer ecosystem and accommodate the improved fundamentals of the GOLD token, which has demonstrated price stability and transitioned to being a yield-bearing asset.
Background and Motivation
The GOLD/st-yETH pool provides a strategic liquidity pairing for a community-focused asset with a core Ethereum staking derivative. Recent positive developments in the GOLD token’s economic model have enhanced its profile and potential as a liquidity pool component.
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Token Stability: The GOLD token has maintained significant price stability over the past two years. Chart comparison of GOLD vs ETH:
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Transition to Yield-Bearing: The GOLD token has recently been upgraded to a yield-bearing asset. This fundamental improvement enhances its utility and aligns with Balancer’s focus on sophisticated, revenue-generating DeFi primitives. The pool now facilitates exposure to a stable community asset alongside staked ETH, with both assets generating yield.
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Ecosystem Incentive Alignment: A cap increase will allow the pool to attract a greater share of BAL emissions, incentivizing deeper liquidity. This improves the trading experience for all users and strengthens Balancer’s position as a leading venue for innovative asset pairs.
Specification
If approved, this proposal will execute an on-chain transaction to update the parameters for the gauge at address 0xC219821b1FE1bBe436f62D911F00Ef1C8542A8F7, raising its maximum possible weekly BAL emissions(cap limit) from 10% to 15%.