[BIP-200] Enable veLIT Gauge on Ethereum w/2% emissions cap

PR with multisig payload

Summary: Proposal to add a gauge for Timeless' veLIT token on Ethereum, one of the first ve8020 based on the popular veBAL model.

This proposal is a first step aiming to align with the key strategic objective of Balancer, described in the [BIP-146].

References/Useful links:

• Timeless Webapp: https://timelessfi.com/
• Docs: https://docs.timelessfi.com/
• Blog: https://blog.timelessfi.com/
• Bunni Webapp: https://bunni.pro/
• 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

Motivation: Timeless is a steadfast advocate of Balancer technology and will maintain its utilization in the long term. By incorporating a veLIT gauge, Balancer highlights the capabilities of the ve8020 model to a wide array of DeFi projects considering their tokenomics strategy. If LIT succeeds in becoming the CRV of Uni v3, both Timeless and Balancer will reap the benefits. This mutually beneficial outcome increases visibility for our respective ecosystems. The potential increase in liquidity, trades, and fees generated by the 80/20 LIT/WETH pool could result in significant revenue for the Balancer protocol and its LPs.

Specifications:

1. Governance:

• Description of the protocol's governance process is available here: https://gov.timelessfi.com/discussion/9717-timeless-governance.
• Governance Multisig that oversee the deployment of every Timeless Improvement Proposal: https://etherscan.io/address/0x9a8fee232dcf73060af348a1b62cdb0a19852d13
• No plan to update the current governance structure.

2. Oracles: NA

3. Audits:

• By Spearbit and yAcademy *https://github.com/spearbit/portfolio/blob/master/pdfs/Timeless-Spearbit-Security-Review.pdf
• https://reports.yacademy.dev/docs/08-2022-Timeless-Yield-Daddy/
• https://reports.yacademy.dev/docs/08-2022-Bunni/

4. Centralization vectors: LIT and veLIT don't rely on any centralized component in order to operate. The implementation of Timeless Improvement proposals submitted and voted by the community must be implemented by the genesis team. Cf governance process https://gov.timelessfi.com/discussion/9717-timeless-governance

5. Market History:

• LIT was launched on January 9, 2023 via an LBP.
• LIT token address: https://etherscan.io/token/0xfd0205066521550d7d7ab19da8f72bb004b4c341
• veLIT was launched on January 18, 2023.
• veLIT token address: https://etherscan.io/token/0xf17d23136b4fead139f54fb766c8795faae09660
• 80LIT/20ETH pool: https://app.balancer.fi/#/ethereum/pool/0x9232A548DD9E81BAC65500B5E0D918F8BA93675C000200000000000000000423
• veLIT gauge: waiting the release of the new Balancer's singleRecipientGauge factory to create the veLIT gauge.

6. Value: The implementation of the ve8020 model makes de facto this pool the primary and unique source of liquidity for LIT. Since its inception, the pool generated substantial fees for Balancer and its LPs, totalling $115,686 in less than a month. As Timeless and Bunni grow their users base, Balancer will directly profit from this with increased fees through the usage of veLIT and its underlying 8020 LIT/WETH pool.

Specification

#1 The DAO Multisig 0x10A19e7eE7d7F8a52822f6817de8ea18204F2e4f will initiate a transaction to the Authorizer 0xA331D84eC860Bf466b4CdCcFb4aC09a1B43F3aE6 calling grantRole with the following arguments:

role: 0xf49d7ffb5922642adc9f29cfb52b2214e81e0b0e54e9cd1e9f70439f0011f368

This corresponds with the role for calling add_gauge on the gaugeController as seen here.

account: 0x10A19e7eE7d7F8a52822f6817de8ea18204F2e4f

This allows the DAO Multisig to directly add gauges to the controller.

#2

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 0x56124eb16441A1eF12A4CCAeAbDD3421281b795A and the corresponding gauge type for the data(bytes) argument.

data(bytes) : 0x3a04f90000000000000000000000000056124eb16441a1ef12a4ccaeabdd3421281b795a0000000000000000000000000000000000000000000000000000000000000002

#3 The DAO Multisig 0x10A19e7eE7d7F8a52822f6817de8ea18204F2e4f will initiate a transaction to the Authorizer 0xA331D84eC860Bf466b4CdCcFb4aC09a1B43F3aE6 calling renounceRole with the following arguments:

role: 0xf49d7ffb5922642adc9f29cfb52b2214e81e0b0e54e9cd1e9f70439f0011f368

This corresponds with the role for calling add_gauge on the gaugeController as seen here.

account: 0x10A19e7eE7d7F8a52822f6817de8ea18204F2e4f

This removes the ability for the DAO Multisig to directly add gauges to the controller.