[BIP-446] Enable 80/20 Weighted Gauge for $OVN (2% cap) [Optimism and Arbitrum]

PR with Payload

https://github.com/BalancerMaxis/multisig-ops/pull/537

Summary:

We propose the introduction of an 80/20 weighted gauge for $OVN on Optimism, Arbitrum, and Base with the pairing as OVN/wUSD+. This initiative aims to foster greater liquidity and facilitate smoother transactions for users on these platforms. By enabling this gauge, we anticipate enhancing the yield-generating opportunities for both the Balancer community and Overnight Finance users.

References/Useful links:

Website: https://overnight.fi Twitter: https://twitter.com/overnight_fi Discord: overnight-fi Docs: https://docs.overnight.fi Defillama: https://defillama.com/protocol/overnight-finance

Protocol Description:

Overnight.fi is a protocol focusing on asset management, with a specialization in neutral-risk strategies. At the heart of its product line is USD+, which is a yield-driven stablecoin, fully backed by collateral. This collateral for USD+ is rooted in DeFi strategies that generate returns. These strategies encompass lending to platforms like Aave, and include both stablecoin-to-stablecoin and neutral-risk strategies.

USD+ by Overnight Finance

USD+ is a DeFi product that offers users the opportunity to invest in a diversified basket of stablecoins. The main goal of USD+ is to optimize yield generation by allocating funds across various yield-bearing protocols and platforms in the DeFi ecosystem. In essence, users deposit their stablecoins into the USD+ pool and receive interest-earning USD+ tokens in return.

wUSD+ is a type of wrapped token within the Overnight Finance ecosystem. In simple terms, it represents a stablecoin (like USD+) that has been "wrapped" to create a new token that can be used within the Overnight Finance platform and potentially other decentralized finance (DeFi) platforms. This wrapping process allows for more fluid and flexible utilization of the stablecoin in various financial strategies and products, facilitating smoother transactions and broader integration within the DeFi space. It essentially helps in enhancing the functionality and interoperability of the original stablecoin, USD+.

Currently, Overnight Finance operates on multiple chains including Base, Optimism, and Arbitrum, with a significant amount of total value locked (TVL) across various products:

USD+: $21,772,869.93 TVL (Operates on Base, Optimism, Arbitrum, and others) DAI+: $9,020,297.94 TVL (Operates on Base, Optimism, Arbitrum) USDT+: $472,694.69 TVL (Operates on Binance, Linea)

OVN by Overnight Finance

OVN is the native token of the Overnight Finance protocol. It serves two main purposes: to promote the use of USD+, a yield-bearing stablecoin developed by Overnight, and to facilitate decentralized risk management within the protocol. OVN holders can participate in governance decisions, helping to align community incentives and guide the protocol's development. Additionally, OVN will be used in Insurance Vaults, where it can be staked to earn insurance premiums and potentially benefit from upward price pressure due to the protocol's revenue mechanisms. The token has a fixed supply of 1,000,000, with a detailed distribution and vesting plan to ensure the maximization of its value over time. Our token has a cross-chain functionality with the help of Axelar.

Launch Price: $20 Presale Price: $20 OVN Tokenomics: Overnight Tokenomics ($OVN) Presale Information: Overnight Presale Information 25% of OVN from Private Presale unlocked on Oct 2. and the remaining 75 will be linearly vested for 4 weeks.

Additional Information:

• We cancelled public presale and just used the money raised from private presale to bootstrap liquidity on DEXes.

• We have launched at 20m FDV.

• We are already live on Aerodrome and Velodrome Finance. We also incentivized huge amount of bribes on Aerodrome (7400$) and Velodrome ($5,700) (For Sept. 28 - Oct. 5)

• We have also provided 22.5k OP for our Beefy Boost Program that will be distributed in over 2 weeks.

• The rate providers was also reviewed by the integrations team and deemed safe.

Motivation:

The motivation behind introducing this pair on Balancer stems from a variety of strategic benefits that this integration would bring to both communities:

1. Enhanced Liquidity: The introduction of the OVN/wUSD+ pair on Balancer would significantly enhance the liquidity of these assets, facilitating smoother transactions and potentially reducing slippage.
2. Increased Yield Opportunities: By leveraging Balancer's flexible and dynamic liquidity pools, users can explore new yield-generating opportunities, thereby maximizing their returns on investment.
3. Community Engagement and Growth: This collaboration would foster greater community engagement, bringing together the vibrant communities of both Balancer and Overnight Finance, and potentially leading to innovative developments and partnerships in the future.
4. Strategic Alignment: The integration aligns with Overnight Finance's strategy of expanding its ecosystem and enhancing the utility and value proposition of the OVN and wUSD+ tokens. It also aligns with Balancer's goal of fostering a diverse and robust DeFi ecosystem.

Furthermore, to stimulate liquidity and encourage participation, the OVN/wUSD+ pair will be incentivized on the three chains - Optimism, Arbitrum, and Base. This incentive mechanism is designed to attract more users to the platform and foster a vibrant and active community around the OVN ecosystem.

We aim to create a competitive environment that rewards participation and ensures the most efficient allocation of resources. We believe that veBAL voters are sophisticated and discerning and they will prioritize the community’s best interest. Complexity is often a byproduct of innovation. Our past experiences teach us valuable lessons, enabling us to build more robust systems.

While 80/20 pools have been associated with locking, the beauty of the DeFi space is its adaptability. Our objective is to leverage the pool structure for its inherent benefits, not merely conform to traditional use-cases. The goal is to amplify liquidity and ensure stability, rather than exploit emissions. We’re using the pool to its fullest potential to cater to the evolving needs of the market. As also noted, the proposed bribe per week represents a significant boost in Aura’s bribe market, should all bribes be channeled in here.

The absence of a defined market cap or trading history doesn’t undermine the intrinsic value of the coin or its future adoption potential. The proposed gauge allocation, especially the 2% caps, is informed by a forward-looking strategy, ensuring that it aligns with the expected bribes and accrued yield.

The gauge allocation is in recognition of the potential this new coin brings. Traditional metrics, like trading history, might not fully capture the inherent value and projected adoption. We’re operating in a rapidly evolving landscape; hence, a forward-looking approach is crucial. Coingecko’s preview status doesn’t reflect the groundwork and strategic partnerships that underscore this project.

The proposal aims to push the boundaries, capitalize on new opportunities, and ensure the best outcome for the community. We trust the veBAL voters to recognize the merit and long-term vision of this initiative.

Specifications:

1. Governance: Information on governance Overview - Overnight Finance Docs (Beta)
2. Oracles: Does the protocol rely on external oracles? No
3. Audits: Audits

• Hacken Audit (Feb 3, 2022) - App

• Hacken Audit (Feb 3, 2022) - Core

• Ackee Audit (Mar 3, 2023)

4. Market History: Overnight Pulse on Beethoven Beethoven X | Overnight Pulse Overnight Pulse on Balancer Arbitrum Balancer Velodrome: OVN/USD+ Aerodrome: OVN/USD+

5. Value: The pool is expected to generate trading volumes and fees for Balancer.The proposed OVN/wUSD+ pool aims to be a primary source of liquidity for both tokens, enhancing the stability and depth of the market on Balancer. We will also continuously incentivize the gauge to attract liquidity.

Contract Addresses:

wUSD+: Optimism - 0xA348700745D249c3b49D2c2AcAC9A5AE8155F826 Arbitrum - 0xB86fb1047A955C0186c77ff6263819b37B32440D Base - 0xd95ca61CE9aAF2143E81Ef5462C0c2325172E028

OVN Optimism - 0x3b08fcd15280e7B5A6e404c4abb87F7C774D1B2e Arbitrum - 0xA3d1a8DEB97B111454B294E2324EfAD13a9d8396 Base - 0xA3d1a8DEB97B111454B294E2324EfAD13a9d8396

$OVN Bribing Plan

Total amount of bribes between all our pools:

per week: $20,000 per month: $80,000 - $90,000

We plan to distribute them depending on bribe effectiveness on various dexes.

We already distributed some of our OP grants via Beefy Boost Program and Velodrome. If approved we can do similar incentives on Balancer too.

New 2% Cap Gauges

Optimism: Child gauge: 0x70535841c362F83B4e1425066bfBA9BF87e1b984 Root gauge: 0x0a2738a1EeADA91DA6D5375a2E6f620c85C287f3

Arbitrum: Child gauge: 0x972539e9d340a915775c004715f286a166f067fd Root gauge: 0x99e2fAfD901645FB611F6D56476AF8Ad25263ea5

Specifcations

Network	PoolId	Root Gauge
Optimism	0x00B82BC5EDEA6E5E6C77635E31A1A25AAD99F881000200000000000000000105	0x0a2738a1EeADA91DA6D5375a2E6f620c85C287f3
Arbitrum	0x85ec6ae01624ae0d2a04d0ffaad3a25884c7d0f30002000000000000000004b6	0x99e2fAfD901645FB611F6D56476AF8Ad25263ea5

The gauges each have 2% caps and would qualfiy as core pools due to their yield bearing component.

The Balancer Maxi LM Multisig eth:0xc38c5f97B34E175FFd35407fc91a937300E33860 will interact with the GaugeAdderv4 at 0x5DbAd78818D4c8958EfF2d5b95b28385A22113Cd and call the addGauge function for each of the pools, passing their corresponding Root gauge for the gauge(address) in the table above, and gaugeType(string) corresponding to their respective network in the table.