[Proposal] Expand the Exchange Gas Reimbursement to all Whitelisted Tokens

The Proposal

For the remaining two weeks of the exchange gas reimbursement pilot, expand the list of eligible tokens to include all whitelisted tokens (the same list that is eligible for BAL liquidity mining). The change would take effect starting at 00:00 UTC on Monday, February 8, and we would continue to allocate up to 7,500 BAL each week to the reimbursement of gas costs for swaps performed through the Balancer Exchange Proxy.

Motivation

The pilot program has gone very smoothly so far, with 929 BAL being distributed to 441 addresses the for first week. Of these addresses, only 171 were LPs also participating in liquidity mining, meaning the other 270 were traders who gained the opportunity to participate alongside LPs in the ongoing distribution of BAL tokens. The second week of the pilot is not yet finished, but so far 1043 BAL are set to be distributed to 433 addresses, 342 of which are not participating in liquidity mining. Only 86 reimbursed addresses are included in both weeks so far, meaning a total of 788 unique addresses have been or will be reimbursed.

For all of us in the Balancer community, the decentralized distribution of governance power has always been a top priority. The liquidity mining program features an extensive list of over 400 eligible tokens and has been a key contributor to this decentralization, distributing BAL tokens to over 9,000 liquidity providers last week. In contrast, the gas reimbursement pilot so far has only included 5 eligible tokens in order to assess feasibility and reduce gameability at the outset.

But now that the basic, five-token version of the pilot has been validated, it is time to expand it to achieve the same degree of decentralization as the liquidity mining program. To ensure lasting robustness of the governance process, we need to get BAL tokens into the hands of as many Balancer users as possible; and that includes both liquidity providers and traders.

Mechanics

The overarching mechanics of the gas reimbursement pilot would not change. Please see the original proposal for details.

In lieu of the shortlist of eligible tokens included in the original proposal, we would use the existing whitelist used for liquidity mining. Swaps between any two of the tokens on the whitelist would be eligible for reimbursement of gas costs, with limits described in the original post and summarized here:

  • Only transactions between an EOA account and the Balancer Exchange Proxy would be eligible. This roughly correlates to end users navigating the Balancer Exchange UI and would not include DEX aggregators or most arbitrage bots.
  • The maximum amount of gas to be reimbursed would be 100,000 units per swap, where there can be more than one swap in a single transaction (a swap is one leg of a multi-hop trade).
  • The maximum gas price (in gwei) used would be the median price of all transactions within the enclosing block.
  • Reimbursements would be made in BAL, not ETH, with the median BAL/ETH price from CoinGecko for the weekly period being used to convert.
  • If the number of tokens to be distributed in a single week exceeds the 7,500 BAL budget, all reimbursements would be scaled down proportionally so that exactly 7,500 BAL are issued in total.
  • Claims would be made available via the same MerkleRedeem contract currently used in the liquidity mining program. Reimbursements and liquidity mining proceeds for the week would be summed and be claimable in a single transaction.
10 Likes

Nice proposal. I think this is the right direction since we whitelisted these token which means we think these token are good for Balancer, they deserve the reimbursement. BTW, a little more marketing may needed since the reimbursement is not fully aware by all Dex user in my opinion.

4 Likes

Amendment 1

If we detect any gaming of the reimbursement program, such as blatant wash trading, we would reserve the right to filter those addresses out of the distribution. We want this to be an opportunity for traders to safely utilize the Balancer Exchange without fear of having their reimbursements diluted by an attacker.

3 Likes

It is not clear to me whether this proposal is just that—a proposal—or whether it has been implemented.

How do we keep track of whether it is accepted and implemented or not?

1 Like

This proposal has been implemented. The actual votes take place not on this discussion forum but on our Snapshot page: Snapshot

I agree that there is room for UX improvement here but everyone is pretty swamped trying to get V2 ready for March.

3 Likes

That clears up a lot! The link on the landing page (Balancer Exchange) redirects to the forum post, from which I could not conclude the status of the proposal.

I understand everybody is busy, just trying to give constructive feedback and helping others who maybe have the same question. Thank you for your prompt reply :slight_smile:

1 Like

I was under the impression that we would receive our reimbursed gas fees in BAL on the wednesday following the tx… I completed 1 tx this past weekend (USDC-BAL) and have not received a dime today…I need to complete another, but if there is a problem and I wont be receiving the reimbursement then I guess I should do it elsewhere where there is cheaper fees…

THIS IS ABSOLUTE CRAP! I spent $90 for two USDC-BAL swaps on the exchange, expecting to get reimbursed and instead all I get is a lowsy 0.5 BAL. THIS IS WRONG AND A RIPOFF. I wouldnt have used V1 if you hadnt been advertising this.

Just so ya can see Im not full of shit the txs are as follows:

0x0c35dc8ee5a88c49d4806c55b10de2f6c268d72404c75c2300e0507a4760c215

0x8388b4259e3f0fb2f443cd5105b789fc20ec79df30a2043df1f5f77c59285336

Only one of these has been reimbursed so far. The reimbursements aren’t just on the Wednesday following the transaction. Wednesday’s reimbursements correspond to the previous week spanning 00:00 UTC Monday - 23:59 UTC Sunday. One of these transactions, from last week, was reimbursed today. The other, from yesterday, will be reimbursed next Wednesday.

2 Likes

If I Select “next” to claim my BAL rewards/reimbursement and the gas is to high, can I "reject "and come back later and claim it?
I do check a few sites to see when it is “cheaper” but have been surprised at times with a ridiculous gas price. Thank you in advance.

Yes, you can reject the transaction and come back when gas is cheaper. No problem.

1 Like

are failed transactions “ERR_LIMIT_OUT” reimbursed?

No, unfortunately they are not. We detect the transactions by listening for the LOG_SWAP event, which is only emitted if a transaction makes a successful swap.

1 Like

I think the pilot program is over. Until when we will receive reimbursment for fees ?

The pilot is over but the program was extended another four weeks: [Proposal] Extend the Exchange Gas Reimbursement Program 4 Weeks

3 Likes

how does this change, if at all, after the new changes to gas refund opcodes by Vitalik?

It doesn’t. We aren’t using any smart contract magic here; we’re just sending BAL to addresses that trade on the Balancer Exchange.

1 Like

Can you list the tokens which are reimbursed? COMP?

Hi , I just swapped dexg token via usdc… can you check if I am eligible for bal tokens,? My contrsct address is 0x20883c08AbB4EDaC2C219533bC84a021EB257ed8