[BIP-796] Enable orbETH/waArbWETH Gauge [Arbitrum]

PR with Payload

https://github.com/BalancerMaxis/multisig-ops/pull/1819

Summary:

This proposal aims to allow the orbETH/waArbWETH gauge to participate in the veBAL incentives.

References/Useful links:

Link to:

• Website: [https://dinero.xyz/]
• Documentation: [https://dinero.xyz/docs]
• Github Page: https://github.com/dinero-protocol/
• Communities:
  • Twitter: https://twitter.com/dinero_xyz
  • Discord: https://discord.gg/dineroxyz
• Dune Analytics: https://dune.com/funky/dinero
• Pool: https://balancer.fi/pools/arbitrum/v3/0x2ece6781bace5e37386adef7a3d45d0bb05f8fce
• Gauge: https://arbiscan.io/address/0xf3e7b852390478faa6d44319bde4782bf35bf2bd

Protocol Description:

orbETH is a native ETH Liquid Staking Token (LST) for Arbitrum Orbit by Dinero Protocol. Like other ETH LSTs, orbETH increases in value as it generates ETH staking yield through apxETH on Ethereum mainnet, allowing users to seamlessly earn staking rewards.

orbETH can be minted natively on Arbitrum One and other orbit chains with ETH and can be easily bridged across orbit chains, ensuring smooth cross-chain interoperability and utility. When orbETH is minted, ETH is deposited into the Dinero Protocol for apxETH. Since orbETH is backed by apxETH, it directly benefits from apxETH’s above-market ETH staking yield.

The vision for orbETH is to become the go-to ETH asset for Arbitrum Orbit—so widely integrated and adopted that it surpasses even WETH in usage. As one of the first native Arbitrum Orbit ecosystem applications, orbETH aims to unify the ecosystem, enhancing liquidity, expanding utility, and fostering greater cohesion among protocols.

By integrating orbETH across the Arbitrum Orbit ecosystem, protocols, builders, and users benefit from access to native ETH staking yield, while the Arbitrum Foundation earns a share of orbETH's yield—creating a sustainable revenue stream to support network growth. This can be redistributed to protocols and users supporting orbETH.

The long term goals of orbETH are to promote orbETH and Arbitrum Orbit ecosystem success through increased liquidity, adoption, and integration of LSTs across the ecosystem.

orbETH can be redeemed for pxETH or ETH by unstaking on the Beacon Chain. However, for orbETH to become a cornerstone asset across the Arbitrum Orbit ecosystem, it needs deep, instant liquidity. In the first instance, bootstrapping orbETH liquidity through key orbETH liquidity pairs is crucial for ingraining orbETH as a core asset in the ecosystem.

Motivation:

Dinero has a long and close relationship with Balancer and Aura. Because of this close relationship and Dinero’s vlAURA governance power, we want to have Balancer as the primary venue for crucial orbETH liquidity.

An LST is only as good as its peg. Therefore for orbETH to be successful, significant liquidity is required. With a gauge, Dinero plans to use its governance power and bribes to direct emissions to the gauge and incentivize crucial orbETH liquidity on Balancer, allowing for higher volumes in the LP and also generating fees for veBAL holders.

Specifications:

1. Governance:

Dinero’s governance is currently off-chain using Snapshot. The multisig address is: 0xA52Fd396891E7A74b641a2Cb1A6999Fcf56B077e. Decisions relating to inflation, liquidity, partnership or DAO treasury go through a DAO vote, and then are executed by the multisig. On-chain governance will come at a later stage.

2. Oracles: Does the protocol rely on external oracles? If so, provide details about the oracles and their implementation in the protocol.

No oracles are currently used.

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

Link to all audits can be found here.

4. Centralization vectors: Is there any component of the protocol that has centralization vectors? E.g. if only 1 dev manages the project, that is a centralized vector. If price oracles need to be updated by a bot, that is a centralized vector. If liquidations are done by the protocol, that is also a centralization vector.

4/7 multisig (0xA52Fd396891E7A74b641a2Cb1A6999Fcf56B077e) controls the pushing of validators public keys to the contract.

5. Market History: Has the asset observed severe volatility? In the case of stablecoins, has it depegged? In the case of an unpegged asset, have there been extreme price change events in the past? Provide specific information about the Balancer pool: how long has it been active, TVL, historical volume? You must provide a direct link to the pool AND a link to your pool's gauge.

The orbETH/waArbWETH has just been seeded. As explained above, pxETH has redemption mechanisms which allow the peg to be maintained/ arbitraged.

6. Value: Is this pool intended to be the primary source of liquidity for the token(s)? If this is not the case, explain the expected value add to Balancer (can this pool generate consistent fees?)

With a gauge, Dinero plans to use its governance power and bribes to direct emissions to the gauge and incentivize crucial orbETH liquidity on Balancer, allowing for higher volumes in the LP and also generating fees for veBAL holders.

Technical Specifications

The Balancer Maxi LM Multisig 0xc38c5f97B34E175FFd35407fc91a937300E33860 will interact with the GaugeAdderv4 at 0x5DbAd78818D4c8958EfF2d5b95b28385A22113Cd and call the addGauge function with the following arguments: gauge(address):0x2D1c51eaB8b3c2287BA26061c0e339DA3b15B955 gaugeType(string): Arbitrum

Edit Maxis:

• Tech spec
• PR with Payload