gm Balancer DAO!
Polygon Labs wants to share Gyarados, a utility developed by gigabrain dev Witherblock. Gyarados is a permissionless cross chain rate provider that leverages LayerZero to allow anyone to report the exchange rate between a yield-bearing asset and its underlying to another chain.
One of Balancer’s biggest features is Boosted Pools. These allow LPs to offset the opportunity cost of providing liquidity by allowing yielding assets to grow while simultaneously providing liquidity. In fact, Balancer DAO receives more revenue from yield bearing asset pools than it does from trading fees.
However, in a multichain world, boosted pools have required tradeoffs in order to function. Bridged assets don’t have the same features as their L1 counterparts. wstETH and rETH, for example, on L1 report the exchange rate between themselves and ETH, while the L2 versions of those assets do not. This requires the core teams of Lido and Rocketpool to post these rates to all L2s they wish to support, and concerningly to LPs, pools relying on those Rate Providers need to trust the core teams to report this rate correctly.
After Balancer DAO voted to come to Polygon zkEVM, the Polygon Developer community looked for solutions to these problems, and Witherblock rose to the challenge by building Gyarados. Gyarados allows anyone to use LayerZero to permissionlessly bridge canonical exchange rates read directly from L1 contracts to other chains. This rate is stored in a dedicated RateProvider contract that fully conforms to the interface expected by Balancer allowing for yield bearing asset support on other chains, with less risk to LPs and less work for core teams.
Gyarados has been deployed on Polygon zkEVM for wstETH and rETH at the addresses below, and the repo can be found here. We invite the Balancer DAO to use these deployments to test Gyarados on Polygon zkEVM and if suited to its needs, leverage it to make RateProvider available on all chains Balancer supports.
A big thank you to Witherblock for leading development, and Balancer DAO integrations team for providing technical review and feedback. We hope that the Balancer community joins the Polygon Developer community in continuing to develop Gyarados as well as other utilities that help make the multichain world accessible to all!
Gyarados Github: https://github.com/witherblock/gyarados
- Ethereum L1: 0xaD78CD17D3A4a3dc6afb203ef91C0E54433b3b9d
- zkEVM L2: 0x00346D2Fd4B2Dc3468fA38B857409BC99f832ef8