[DRAFT] Proposal: Co-Incentivized Metastable Pool with FEI and RAI


FEI and RAI are discussing about a co-incentivized Balancer Metastable pool. The two communities would like to propose a liquidity mining program together with Balancer in order to grow the RAI/FEI pool so that it becomes one of the most liquid in the Balancer v2 protocol.


FEI and RAI have been using concentrated liquidity protocols extensively over the last months. The two communities have close ties to each other and would like to strenghten their collaboration using a Balancer v2 Metastable pool.

The aim of the pool would be to concentrate FEI and RAI liquidity in a narrow band and allow the Balancer pool to follow RAI’s target price, similar to how Curve and mStable have custom pool implementations meant to read the target price directly from the RAI protocol.


This proposal is still a draft due to the fact that we would like to gauge interest from the Balaner community as well as see how we could build this unique pool. The Reflexer community could build a custom implementation of a Metastable pool that reads the RAI target price from this contract already used by both the Curve and mStable RAI pools.

Separately, a FEI community member proposed that the FEI/RAI pool could be a Boosted Metastable one that lends idle assets in Aave v2, although we are not yet sure if the combination is possible as well as what parameters should be chosen for it.

We invite the community to give feedback and see how we could all work together!


I’d love to see this come to fruition! Erwan from Fei has been working on a metastable pool implementation which we can use for this. Should be ready by end of month


Hi, I’m in favor of either of your two pool ideas and any collaboration between our protocols.

However in term of feasibility I’ll need a Dev to chime in. I’m not sure if that rate provider contract you provided will work with the metastable contract or not. For the 2nd idea, I think plugging into AAVE would just need a little work, but not sure how the metastable aspect will work between the two assets in addition to being able to lend. I’m confident that someone knows better than I.

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Hi @dr-stone, it’s great to see this proposal. I’m very excited about RAI liquidity on Balancer and pairing against FEI in particular is a good idea on top of giving an easy route for RAI holders to trade for Fei’s PCV assets stored in Balancer V2 Managed Pools, this pool could see good usage as Fei rebalances their PCV into/out of safer assets such as RAI.

Erwan from Fei has been working on a metastable pool implementation which we can use for this. Should be ready by end of month

@joey Our metastable pools allows custom rate providers (which would e.g. convert RAI to units of USD) to be plugged in without needing to modify the pool’s implementation. I’ve thrown together a quick rate provider which reads the current RAI redemption price here which should be suitable based on the OP. The address of this rate provider would just need to be provided to the pool on deployment (we can answer any questions when it comes to deployment).

Regarding boosted pools: I’m pretty sure that would work just fine as we’d just need to have a rate provider which combines the rates from the token appreciation from Aave and the RAI redemption price together. We (Balancer) would be happy to write this rate provider if we all decide to go down this path.


Help with the rate provider would be much appreciated :raised_hands:

Was also curious to know if Balancer did co-incentivization with other teams in the past and what that process entails.

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Yes, co-incentivization is common practice. Incentives are handled by the Liquidity Mining Committee. You can reach them in the #liquidity-mining channel in our discord.


Hi @TomFrench, it’s Guillaume from Reflexer. We’re thinking of moving forward with the boosted pool. Could you help with the Redemption rate + Aave rate provider ?

It looks like we simply need to multiply by liquidityIndex from getReserveData(<RAI TOKEN ADDRESS>) of the Aave lending pool contract
For reference:

Rai aToken Aave: aRAI Token V2 | 0xc9bc48c72154ef3e5425641a3c747242112a46af
Aave V2 lending pool Aave: Lending Pool V2 | 0x7d2768de32b0b80b7a3454c06bdac94a69ddc7a9

I had a shot at building the rate provider: Add the aRAI rate provider by guifel · Pull Request #4 · balancer-labs/metastable-rate-providers · GitHub

Let me know what you think and how we should test this.

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Bump, any thoughts from the Balancer team ?

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