Aura Finance BIPs

[BIP-257] Enable WETH/USDC Gauge [Ethereum]

Voting ended almost 3 years agoSucceeded

PR with payloads

https://github.com/BalancerMaxis/multisig-ops/pull/146

Summary:

We launched a brand new Balancer pool type: TWAMM. This will be a cornerstone in Balancer’s vision of the go-to AMM for DeFi protocols to build and trade upon. TWAMMs are extremely capital efficient and are critical to improve the blockchain’s anti-fragility by facilitating large asset swaps completely on-chain, see asset monetary policy, whale liquidations, treasury management, index fund re-balancing, etc.

References/Useful links:

Link to: • Website: https://github.com/Cron-Finance/Cron-Finance • Documentation: https://docs.cronfi.com/ • Github Page: https://github.com/Cron-Finance/twamm
• Communities: Mirror, Twitter

Protocol Description:

Assets: ETH/USDC

Corresponding Protocols: N/A

Price: https://www.coingecko.com/en/coins/ethereum

Motivation:

In order for trades to start on the pool, we need an initial resting (seed) liquidity. After the concept is proven out, we believe new TWAMM pools will be launched permissionless on Balancer. We believe the trading fees paid to LPs from traders and arbitrageurs of TWAMMs will far exceed the current status quo.

Specifications: Link to pool Link to gauge

Governance:
- Factory Owner: Gnosis Safe Deployer
- Admin Privileges: https://docs.cronfi.com/twamm/fundamentals/admin-privileges
- Governance plans: initially the factory owner will be the default administrator of the pools. However, as new pools are created we plan on handing over the admin privileges to the token’s DAO or controlling party as needed.
Oracles:
- No external reliance, we have a built-in oracle.
Audits: Provide links to audit reports and any relevant details about security practices.
- SpearbitDAO: https://github.com/spearbit/portfolio/blob/master/pdfs/CronFinance-Spearbit-Security-Review.pdf
Centralization vectors:
- The only centralization vector is the factory owner controls the admin privileges. The factory multi-sig is a 2/3 Gnosis Safe. The capabilities that the admin has is pausing and setFees. Both of these are in place to ensure optimal operations of the pool. LPs can monitor these events and are free to withdraw liquidity at any time.
Market History:
- N/A. We’re interested in ETH/USDC some of the most stable and reputed assets in the Vault. It's also the pair with the most volume in the top DEXs: https://www.coingecko.com/en/exchanges/decentralized
- Pool & Gauge information will be added post-launch
Value:
- Balancer LPs benefit from long-term fees, short-term fees, and MEV kickback from arbitrageurs, see https://docs.cronfi.com/twamm/product-guides/liquidity-providers
- Once TWAMMs become the de-facto solution for large asset swaps, we believe Balancer protocol will become the schelling point for protocols interested in advanced trade execution.

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Discussion

[BIP-257] Enable WETH/USDC Gauge [Ethereum]

Timeline

Apr 18, 2023Proposal created

Apr 20, 2023Proposal vote started

Apr 24, 2023Proposal vote ended

Jan 17, 2025Proposal updated

PR with payloads

Summary:

We launched a brand new Balancer pool type: TWAMM. This will be a cornerstone in Balancer’s vision of the go-to AMM for DeFi protocols to build and trade upon. TWAMMs are extremely capital efficient and are critical to improve the blockchain’s anti-fragility by facilitating large asset swaps completely on-chain, see asset monetary policy, whale liquidations, treasury management, index fund re-balancing, etc.

References/Useful links:

Protocol Description:

Motivation:

In order for trades to start on the pool, we need an initial resting (seed) liquidity. After the concept is proven out, we believe new TWAMM pools will be launched permissionless on Balancer. We believe the trading fees paid to LPs from traders and arbitrageurs of TWAMMs will far exceed the current status quo.

Specifications: Link to pool Link to gauge

Governance:

Factory Owner: Gnosis Safe Deployer
Admin Privileges: https://docs.cronfi.com/twamm/fundamentals/admin-privileges
Governance plans: initially the factory owner will be the default administrator of the pools. However, as new pools are created we plan on handing over the admin privileges to the token’s DAO or controlling party as needed.

Oracles:

No external reliance, we have a built-in oracle.

Audits: Provide links to audit reports and any relevant details about security practices.

SpearbitDAO: https://github.com/spearbit/portfolio/blob/master/pdfs/CronFinance-Spearbit-Security-Review.pdf

Centralization vectors:

The only centralization vector is the factory owner controls the admin privileges. The factory multi-sig is a 2/3 Gnosis Safe. The capabilities that the admin has is pausing and setFees. Both of these are in place to ensure optimal operations of the pool. LPs can monitor these events and are free to withdraw liquidity at any time.

Market History:

N/A. We’re interested in ETH/USDC some of the most stable and reputed assets in the Vault. It's also the pair with the most volume in the top DEXs: https://www.coingecko.com/en/exchanges/decentralized
Pool & Gauge information will be added post-launch

Value:

Balancer LPs benefit from long-term fees, short-term fees, and MEV kickback from arbitrageurs, see https://docs.cronfi.com/twamm/product-guides/liquidity-providers
Once TWAMMs become the de-facto solution for large asset swaps, we believe Balancer protocol will become the schelling point for protocols interested in advanced trade execution.