[BIP-233] Enable MaticX / bb-a-wMATIC Gauge [Polygon]

PR with Payload

Summary:

This pool uses the ComposableStablePoolFactory-v3 1 which addresses the reentrancy vulnerability disclosed during February 2023. This gauge is uncapped, and would enter as a “core pool” under BIP-19. This means 65% of 50% of yield generated by this pool is to be used for bribing for votes on it via Hidden Hand.

The pool MaticX/bb-a-wMATIC is to replace the primary MaticX/wMATIC pool on Balancer v2. The current MaticX/wMATIC pool contains $13.5M in TVL at the time of writing and is the second largest pool on the Polygon deployment.

References/Useful links:

• Website
• Documentation
• Github Page
• Twitter
• Discord

Protocol Description:

This pool utilises MaticX and linear pool bb-a-wMATIC which deposits wMATIC into Aave v3 wMATIC reserve on the Aave v3 deployment on Polygon. The linear pool utilises a wrapper developed by Aave Companies.

Motivation:

Migrating from MaticX/wMATIC to MaticX/bb-a-wMATIC is expected to generate an additional 31.6 bps (158/2 x 0.5 x 0.8) of yield for Liquidity Providers (LPs) after fees and bribes relative to the current pool. This is due to the Aave v3 wMATIC reserve generation 158 bps of deposit yield. Historically, this yield has been higher.

Excluding token emissions, the inclusion of the bb-a-wMATIC linear pool, increases the passive yield for LPs by an estimated 10.2%, (0.316%/3.11%). This is equivalent to >8x the swap fee APR at the time of writing as most of the yield is derived from MaticX within the pool.

Specifications:

1. Governance: Stader protocol is governed by the SD token. Holders can actively participate in governance decisions and share feedback on proposals put forward by the protocol. The following decisions will follow the governance mechanism process:

• Any implication on smart contract parameters for liquid staking
• Changes to validator selection criteria
• Changes to fees
• SD token related
• Treasury management and SD staking
• More details here

2. Oracles: MaticX Oracle, '0x5d37E4b374E6907de8Fc7fb33EE3b0af403C7403'

3. Audits:

   For Aave v3, see below:

• ABDK

• OpenZeppelin

• Trail of Bits

• Peckshield

• SigmaPrime

  For Stader's MaticX, see below:

• Halborn

• Immunebytes

  A Bug Bounty worth $1M is currently live on Immunefi and there is also enabled onchain monitoring with Forta.

4. Centralization vectors: See here.
5. Market History: See MaticX and wMATIC.
6. Value: Balancer will earn the protocol fee on MaticX yield and deposit yield generated by Aave v3 on Polygon via bb-a-wMATIC.

Link to Pool: TBA Link to Gauges: TBA

Disclosure:

This proposal is the sole work of @Llama contributor, @Matthew_Graham, via the legal entity TokenLogic. Llama is a Service Provider to Aave DAO.