[AIP-2] auraBAL Reward Reallocation

Authors

PhiJFry, 0xButterfield

Summary

This proposal suggests redirecting current rewards for the auraBAL/[8020 BAL/ETH BPT] pool (also referred to as ”auraBAL LPs”) to bribes and direct incentives for the pool via its Balancer gauge, in order to avoid fragmentation of auraBAL liquidity and to increase the effectiveness of AURA rewards on liquidity and price action.

Background

As initially laid out in the launch tokenomics 5, 10m AURA (10% of total supply) is being distributed over a 5-year period via an immutable MasterChef contract directly to auraBAL LPs, summing to approximately 38k AURA per week.

Now that the auraBAL Stable Pool gauge has been deployed and added to the Aura frontend, incentives for this BPT are now split between two locations, causing unnecessary fragmentation.

This proposal suggests redirecting these rewards to consolidate auraBAL liquidity, so that all liquidity providers can collect both BAL and AURA as a reward for their participation.

Proposal

This proposal would see a redirection of the MasterChef reward emission as follows:

Current 100% => B-auraBAL-STABLE BPT

Proposed 50% => auraBAL LP gauge bribes (across both veBAL and vlAURA) 50% => auraBAL LP gauge rewards, as direct incentives for this pool 0% => B-auraBAL-STABLE BPT

This would be accomplished by adding two new private pools capable of claiming AURA rewards to the MasterChef contract, and setting the allocation points to zero on the current pool.

Technical specification

The following groups of transactions would be executed by the protocol multisig:

1. Deploy a forwarder contract allowing AURA to be claimed and then forwarded to a secure EOA delegated by the Protocol DAO. The EOA would be responsible for bribing across both the veBAL and vlAURA bribe markets on Redacted’s Hidden Hand. Bribes will be fully utilized every 2 weeks and split between vlAURA and veBAL bribes at the discretion of the briber, optimizing for ROI.
2. Call setExtraReward on the reward stash with the AURA address, and add a reward hook to the auraBAL gauge reward stash that pulls rewards directly from the MasterChef contract.
3. Set allocation points to zero for the current auraBAL rewards pool.

Voting

This vote will be a single-choice vote. You may vote “For” or “Against” this proposal, or choose to abstain from the vote. Replies to this post should be used for an open discussion on the subject.

By voting “For” this proposal, you are voting in favor of the reallocation of AURA in accordance with the specification set out in this proposal.