[BIP-252] Timeless 50k BAL Grant Application [ve8020 Program]

PR with multisig payload

Author(s): @mcfly
Status: BIP
Date Applied: 2023-03-01
Date Updated: 2023-03-13
Date Ratified: yyyy-mm-dd
Vote Start Date: yyyy-mm-dd
Vote End Date: yyyy-mm-dd
BAL grant amount: 50k BAL

Summary

This grant application requests 50k BAL to be awarded to Timeless as a participant in Balancer's program outlined in BIP-146, which aims to support all systems involving the staking/locking of 8020 BPT. This proposal follows a successful vote to enable veLIT gauge on Balancer.

Why we qualify

• Current ve8020 BPT TVL: $8,548,533
• 90 days fees: $315,129
• Project is live on Mainnet since June 2022.
• BAL incentives will go to ve8020 lockers only, as defined in the BIP-200
• Project treasury will supply 20% of ETH so that no BAL is sold when locked. cf Timeless snapshot vote approval.
• TVL exceeds value of 25k BAL by 30x
• Lifetime total revenue earned exceeds ⅓ the value of 25k BAL

More details about Timeless 8020 BPT here.

References/Useful links:

• Timeless Webapp: https://timelessfi.com/
• Docs: https://docs.timelessfi.com/
• Blog: https://blog.timelessfi.com/
• Bunni Webapp: https://bunni.pro/
• Bunni Dune analytics: https://dune.com/bored_genius/bunni
• Twitter: https://twitter.com/timeless_fi
• Forum: https://gov.timelessfi.com/
• Snapshot: https://snapshot.org/#/timelessfi.eth
• Github: https://github.com/timeless-fi
• 80LIT/20ETH pool: https://app.balancer.fi/#/ethereum/pool/0x9232A548DD9E81BAC65500B5E0D918F8BA93675C000200000000000000000423
• LIT token address: https://etherscan.io/token/0xfd0205066521550d7d7ab19da8f72bb004b4c341
• veLIT token address: https://etherscan.io/token/0xf17d23136b4fead139f54fb766c8795faae09660
• Governance Multisig: https://etherscan.io/address/0x9a8fee232dcf73060af348a1b62cdb0a19852d13
• DefiLlama: https://defillama.com/protocol/bunni & https://defillama.com/protocol/timeless-finance

Description

veLIT stands for vote-escrowed Liquidity Incentive Token, it is simply LIT locked for a period of time. veLIT is the core component of Timeless' liquidity engine, Bunni.pro. This engine is designed to maximize liquidity on Uniswap v3 by creating complex incentivization schemes. Timeless hopes that by launching LIT, other projects will be able to incentivize their token liquidity at a much higher level of efficiency on Uni v3. Additionally, Timeless use LIT and Bunni to bootstrap liquidity in its own yield token markets.

How does Timeless work?

Timeless is a yield tokenization protocol. You can provide assets to Timeless (e.g. 100 USDC) and mint PYT and NYT (e.g. 100 PYT and 100 NYT). The assets will be deposited into a farm, and the yield earned can be claimed by the PYT holders. By holding either only PYT or only NYT, you can build either a long position or short position on yield rates such as stETH or aUSDC.

How does Bunni work?

Bunni is a liquidity engine that was built on top of Uniswap v3. It was initially released in October 2022 as a public utility that represents Uniswap v3 liquidity positions as fungible ERC-20 tokens instead of NFTs. This allows for more complex incentivization schemes to be created for Uniswap v3 liquidity. Since its initial release, Timeless has continued to improve and develop Bunni, turning it into a full-fledged liquidity engine, with improvements to its tokenomics inspired by protocols such as Curve and Balancer. These improvements aim to:

• Encourage the longevity of the protocol by disincentivizing farming-and-dumping and aligning the interests of liquidity providers and LIT holders
• Provide the protocol with a large treasury to fund growth and reduce LIT price volatility
• Maintain a high level of liquidity for LIT

For more information about the tokenomics, please see FOO: Fungible Ownership Optimization: https://blog.timelessfi.com/posts/foo

Specification

Transaction A will be executed immediately.

DAO Multisig 0x10A19e7eE7d7F8a52822f6817de8ea18204F2e4f will transfer 50,000 BAL to 0x89f67f3054bFD662971854190Dbc18dcaBb416f6

Then, DAO Multisig 0x10A19e7eE7d7F8a52822f6817de8ea18204F2e4f will call allowlistAddress on 0x7869296Efd0a76872fEE62A058C8fBca5c1c826C with the following argument:

contractAddress: 0x89f67f3054bFD662971854190Dbc18dcaBb416f6

This will whitelist the veBAL locking contract to lock veBAL in the system.

Transaction B, to be executed some time later once ETH is transferred by Timeless:

DAO Multisig 0x10A19e7eE7d7F8a52822f6817de8ea18204F2e4f will call createLock on 0x89f67f3054bFD662971854190Dbc18dcaBb416f6 with following arguments:

unlockTime: 1712959367 which corresponds to 4/12/2024 (max lock) minAmountOut: 0 placeholder value for now

Once A is executed and the ETH is sent to the contract we can use tenderly sim to figure out if transaction B parameters need to be edited. This wouldn't require another vote, just forum post explaining reasoning.