Lido Balancer Alliance Program Proposal
Lido DAO Growth Committee Multisig:
0x87D93d9B2C672bf9c9642d853a8682546a5012B5
Will receive if any revenue share if this proposal is passed by the Balancer governance process.
Why Lido DAO Qualifies to be a Balancer Alliance Member
Historically, Balancer has been an important venue for wstETH’s liquidity and liquidity growth. As seen from the stETH liquidity dashboard, trading volumes for wstETH on Balancer using a 30d Moving Average has always consistently been in the top 3 venues while also being the top for the most parts in terms of TVL of wstETH compared to other venues.
As of time of writing, there’s approximately slightly over $190m USD of wstETH that’s locked in Balancer liquidity pools. While part of this could be attributed to wstETH being a favoured pairing by other asset issuers, it is undeniable that the TVL, volume and consequently revenue generated by wstETH and its related pools play a crucial part of the Balancer ecosystem.
The revenue generated can be fact-checked from this lifetime protocol fees query from Balancer which indicates that stETH related pools has generated a grand total of >$5m in protocol fees for Balancer. These are testaments to the performance of previously distributed incentives to ensure that Balancer is a key piece of the wstETH ecosystem.
Balancer’s v3 boosted pools are also identified to be a part of Lido DAO’s Growth Committee’s (GC) liquidity strategy moving forward, with the rehypothecation of LPs being something that the GC wants to push to create more sustainable liquidity pools in the long run, these pools will be proposed to be included alongside the grandfathered mainnet wstETH/ETH pool that has granted us eligibility for the program.
Proposed Alliance Pool List and Incentive Structure
I would like to propose enabling revenue sharing for the grandfathered pool as mentioned by @zendragon as well as new pools that the Growth Committee intends to grow with Balancer’s v3 deployment.
| Asset Pairing | Network | Pool Address | Incentive Token | Expected $/week | # of weeks |
|---|---|---|---|---|---|
| v2 | |||||
| wstETH/WETH | Ethereum | 0x93d199263632a4ef4bb438f1feb99e57b4b5f0bd | wstETH | N/A | |
| v3 | |||||
| fWETH/fwstETH | Ethereum | 0x6b31a94029fd7840d780191b6d63fa0d269bd883 | wstETH | 5900 | 12 |
| v3 | |||||
| fWETH/aave-wstETH | Arbitrum | 0xb1b8b406eeebbb636fdbb20e6732c117d828363c | wstETH | 4700 | 12 |
| v3 | |||||
| fWETH/aave-wstETH | Base | 0x9972c4f21b5ae6062233031314adbbdda7513ed2 | wstETH | 4700 | 12 |
Cold Start Allocation
The Lido DAO GC would like to request $10k USD in BAL tokens to kickstart its veBAL position and would pair the 20% portion of WETH from the GC operational multisig.
As shown earlier, Balancer has been a key component to wstETH’s onchain liquidity growth and the GC of Lido DAO intends to continuously utilize Balancer’s v3 mechanics as a means to sustain and bootstrap strategic venues in the foreseeable future.
Special Considerations
Nil