Proposal to add Matic<> MaticX gauge on Balancer

Summary

Stader proposes adding a gauge for the Matic<>MaticX pool on Balancer. MaticX is a liquid token for Matic staking built by StaderLabs, a multi-chain staking infrastructure provider with ~770 mn $ in TVL. The incentivization of the Matic<>MaticX pool on Balancer will help:

  1. Build deep liquidity would be a prerequisite to make staked Matic truly liquid in the Polygon Defi ecosystem and incentives would be an important mechanism to aid this
  2. Establish Balancer as the prime DEX for Matic <> MaticX pool. Two reasons why this is important:
  3. $3 bn in assets locked in polygon staking currently that is set to be unlocked by liquid staking solutions like MaticX
  4. With its metastable pool technology, Balancer is best placed to serve Matic <> MaticX

# References/Useful links

<Restricted due to 2 links due to posting restrictions. Other links to be shared in the first comment>

Protocol description

Background on Staderlabs:

StaderLabs is a multi-chain staking infrastructure provider. We are live on 4 blockchains including Terra, Polygon, Fantom and Hedera.

Within a few months of launch, Stader has more than 770 Mn USD of total assets staking on the platform.

  1. ~ $700 M+ Luna staked
  2. ~$60 M+ HBAR staked
  3. Over 40k+ users staking with Stader smart contracts

Stader Protocol’s native token is the SD Token, and we have incentivized liquidity pools on other DEXes by giving out rewards in SD tokens (listed on coin gecko).

About MaticX:

MaticX is a liquid token that users get when they stake their Matic with Stader. The MaticX tokens are a representation of users’ staked Matic. They allow users to swap them at a later date for their staked Matic and accrued rewards with Stader. Meanwhile, they will be able to use it on multiple protocols on Polygon to participate in DeFi. MaticX is an ERC20 token.

Safety and security are paramount for Stader and we do multiple audits of our smart contracts to safeguard user’s funds. MaticX contracts have been audited successfully by two reputed audit firms Halborn and Immunebytes.

Motivation

Adding incentivization to the Matic<>MaticX pool on Balancer will help unlock the large liquidity currently locked in staked Matic for the Polygon and Balancer community and in the process, bring significant liquidity and trading volumes to the Balancer ecosystem

  • Liquid staking is large and MaticX aims to be the primary liquid staking token for Polygon:
    • Staking on polygon currently has ~3bn $ of assets staked. Liquid staking can help unlock a large part of this for use in the Defi ecosystem making this an asset class of interest to the Polygon and Balancer communities
    • Stader’s experience in building strong liquid staking solutions on multiple chains, especially Terra and Hedera, with ~770 mn$ in TVL makes it one of the leading candidates to help unlock this liquidity through MaticX
    • MaticX is off to a strong start within a few weeks of launch with staking TVL for Matic already at 2.5+ Million Matic. We also recently launched staking on the Polygon Mainnet directly (Polygon’s staking protocol is native to Ethereum, so Stader Polygon v1 only supported staking Matic on Ethereum) and this will help increase staking penetration and in turn, MaticX
    • We will build deep liquidity for MaticX to truly enable users to unlock their staked assets and participate in Defi on Polygon. The MaticX <> Matic LP is already live on Quickswap and has a liquidity of around 5 million USD with average daily trading volume of $246,333 in the last 7 days (Apr 27-May 3)
    • We expect MaticX to continue to grow in demand as we integrate across more ecosystem partners and also increase overall staking participation in Polygon (currently only 14,000 wallets of total of 140m active wallets stake on Polygon)
  • Balancer is best suited to provide deep liquidity for Matic<>MaticX given its unique metastable pool technology, a great fit for liquid staking assets

Other Specifications

Gauge: 0x48534d027f8962692122dB440714fFE88Ab1fA85

We would like to hear feedback and update any specific information/ parameters as suggested by the Polygon and Balancer community

2 Likes

Sharing all the relevant links here since it couldn’t included above due to posting restrictions:

Polygon scan link to MaticX is available here: Contract Address 0xfa68fb4628dff1028cfec22b4162fccd0d45efb6 | PolygonScan

coingecko for SD token.

Look forward to your feedback.

Thanks,
Stader team

thank you @Vibin for the proposal.

I’m in support!

All for it! Absolutely love metastable pools down this vein.

1 Like

appears to be a well defined proposal (as much as i can judge). thanks for the write-up.

1 Like

In doing the checks for this proposal I think you’ve missed one required step. We haven’t outlined this process anywhere so it’s not your fault at all.

You did call create(0xc17636e36398602dd37bb5d1b3a9008c7629005f) on Contract Address 0x3b8ca519122cdd8efb272b0d3085453404b25bd0 | PolygonScan

You also need to call create() on PolygonRootGaugeFactory | Address 0x4C4287b07d293E361281bCeEe8715c8CDeB64E34 | Etherscan using the address of the streamer on Polygon for the recipient address, which is 0x7ffdec1fe5ffcd4f80f535b4a992a8df16c683bd

This root gauge you create will be the one we add to the voting list. Once you’ve created it please post the contract address. Thanks :slight_smile:

(and if this is wrong, hopefully someone will correct me ASAP)

1 Like

Hi Solarcurve,

Went back and checked in with the team and here’s the actual root guage address: PolygonRootGauge | Address 0xf01541837cf3a64bc957f53678b0ab113e92911b | Etherscan

Thanks for your feedback!

2 Likes

Thank you! all looks good. I think we can aim for a vote starting Sunday and hope to have this on the UI for voting by Thursday so you will be well positioned to launch your bribe at that time if you choose :slight_smile:

All assumes no one speaks up with any concerns in the interim of course.

2 Likes

Thank you @Vibin for the well written proposal. Looking forward to seeing Staderlabs take on Polygon!

https://snapshot.org/#/balancer.eth/proposal/0xdf9e5ffc46a29e62465f66a6a5b778e19cd8141b335224a4035e7d05be76ba5f