[BIP-358] Enable GHO/wstETH Gauge [Ethereum]

PR with Payload

https://github.com/BalancerMaxis/multisig-ops/pull/366

Summary:

This wstETH/GHO pool to be a 80wstETH-20GHO Weighted Pool. 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 remaining 35% goes to Balancer DAO as revenue.

This proposal is for a new pool wstETH/GHO to be created on Ethereum.

References/Useful links:

GHO

• Website
• Documentation
• Github Page
• Communities

wstETH

• Website
• Documentation
• Github Page
• Communities

Protocol Description:

Aave Protocol The Aave Protocol is a decentralized liquidity protocol that is deployed across many EVM compatible networks including but not limited to Optimism, Arbitrum, Avalanche and Polygon. Currently, the Aave Protocol has a TVL of approximately $7.8 Billion.

GHO is a decentralized multi-collateral stable coin that is fully backed, transparent and native to the Aave Protocol.

Lido Protocol stETH is a token that represents staked ether in Lido, combining the value of initial deposit + staking rewards. stETH tokens are minted upon deposit and burned when redeemed. stETH token balances are issued 1:1 to the ethers that are staked by Lido Protocol. stETH token’s balances are updated when the oracle reports change in total stake every day.

wstETH is a wrapped version of regular stETH, while wETH is a wrapped version of Ethereum.

Motivation:

This proposal aims to add a veBAL gauge for 80wstETH-20GHO.

One of Balancer’s near term strategic objectives is to attract more yield bearing liquidity and more GHO liquidity pools to Balancer. This pool will provide resilence to the GHO peg and has the potential for inclusion in the Aave Safety Module.

Specifications:

1. Governance:

• AAVE and stkAAVE serve as the governance tokens for the Aave DAO. Holders can vote on proposals at both a Snapshot level and through the Aave DAO on-chain governance portal.

• Find more information about governance on Lido’s forum here.

2. Oracles:

• rateProvider0 (for GHO): 0x0 (none)

• rateProvider1 (for wstETH): 0x72D07D7DcA67b8A406aD1Ec34ce969c90bFEE768

3. Audits:

Aave v3

• ABDK
• OpenZeppelin
• Trail of Bits
• Peckshield
• SigmaPrime

GHO

• Sigma Prime

• Sigma Prime

• ABDK

• OpenZeppelin-v2

• OpenZeppelin-v1

• Lido Audits can be found here.

4. Centralization vectors:

• Aave Governance is decentralized, and all changes must go through a transparent and well-tested governance process.

• Lido Governance, see here

5. Market History:

• GHO is yet to be released by the Aave DAO.

• wstETH has a long successful history within Balancers protocol.

6. Value:

• This pool is a Core Pool and therefore will generate revenue for the DAO via wstETH derived yield and through swap fees.

Pool Details

Link to Pool: 80wstETH-20GHO Pool - TBA Link to Gauges: 80wstETH-20GHO Gauge - TBA

Transaction: The DAO Multisig 0x10A19e7eE7d7F8a52822f6817de8ea18204F2e4f will interact with the AuthorizerAdaptor at 0x8F42aDBbA1B16EaAE3BB5754915E0D06059aDd75 and call performAction with the GaugeController at 0xC128468b7Ce63eA702C1f104D55A2566b13D3ABD for the target(address) argument and using 0x3a04f900 followed by the gauge address TBD and the corresponding gauge type for the data(bytes) argument. data(bytes) : TBD

Disclosure:

This proposal is the sole work of Matthew Graham and Dydymoon from Tokenlogic. This proposal has been funded via the Butter Delegation Campaign.

Details on TokenLogics delegation platform can be found here.

Disclaimer

The payload in its current form is incomplete. This BIP will become obsolete in the event if the pool and gauge specifications are not added to the payload by June 17th 2023, 08:00 PM CET and successfully completes the Balancer Maxi review cycle.