PR with Payload

https://github.com/BalancerMaxis/multisig-ops/pull/2363

Summary

Proposal to add gauge support for the new AAVE/WETH reCLAMM Pool on Balancer v3 Ethereum and Arbitrum. This will be the first reCLAMM gauge, marking a milestone for Balancer’s concentrated liquidity design while deepening the integration between Aave and Balancer.

References/Useful links

• Balancer reCLAMM Overview
• Balancer reCLAMM Technical Reference
• Aave Protocol
• AAVE Overview

Protocol Description

Describe the proposed asset(s), the corresponding protocol(s), and historic prices of the token (price must come from the source of highest liquidity).

Motivation

reCLAMM Pools

reCLAMM Pools are Balancer’s next-generation concentrated liquidity design, combining the capital efficiency of narrow liquidity ranges with the automation and fungibility of Balancer pools.

Unlike traditional CL designs (e.g., Uniswap v3), where LPs must manually reposition liquidity, reCLAMM pools automatically re-center their price range when imbalances occur. This ensures that liquidity remains active and useful without requiring ongoing LP management.

Key features:

• Concentrated liquidity: higher capital efficiency, tighter spreads, reduced slippage.
• Automatic re-centering: no manual upkeep, LPs continue to earn fees.
• Fungible LP tokens: gauge-compatible, unlike NFT-based designs.
• Transparent mechanics: adjustment logic is fully on-chain and deterministic.

This makes reCLAMM pools particularly well-suited for deep, long-term DAO token liquidity.

The AAVE/WETH Pair

AAVE/WETH is one of the most important volatile pairs in DeFi. Deep liquidity improves execution for traders, strengthens integrations, and reduces slippage for AAVE holders.

By deploying the AAVE/WETH reCLAMM pool on Ethereum mainnet and Arbitrum, Balancer and Aave together create a capital-efficient, sustainable trading venue that will become a cornerstone of AAVE’s on-chain liquidity.

Motivation

This proposal is strategically important for both Balancer and Aave:

• First reCLAMM Gauge: Establishes Balancer as a leader in concentrated liquidity with fungible, gauge-compatible pools.

• Efficiency Gains: Concentrated liquidity ensures better execution, lower slippage, and higher fee generation.

• Volume Growth: Improved execution attracts larger trades, increasing volume and protocol revenue.

• DAO Liquidity Standard: Serves as a blueprint for other DAO tokens to adopt reCLAMM pools.

Specification

1. Governance

Balancer governance manages the pool factory, parameters, and gauge approval process.

2. Oracles

The pool itself does not rely on external oracles, as pricing is determined by pool balances.

3. Market Context

• AAVE is one of the most liquid and widely traded governance tokens in DeFi.
• Current liquidity is fragmented across CEXs and DEXs (Balancer v2 and Uniswap v3).
• A Balancer reCLAMM pool provides a superior execution venue with sustainable liquidity for Ethereum.

4. Value

The AAVE/WETH reCLAMM pool will become a flagship volatile pair on Balancer v3 Ethereum, showcasing the design’s advantages while serving Aave’s liquidity needs.

Technical Specification

• Pool addresses: Mainnet: 0x9d1fcf346ea1b073de4d5834e25572cc6ad71f4d Arbitrum: [0x5ea58d57952b028c40bd200e5aff20fc4b590f51]

Enable Gauges

The Balancer Maxi LM Multisig 0xC38c5f97B34E175fFf35407fc91a937300E33860 will interact with the GaugeAdderv4 at 0x6E7a5Fa5bfe097d33a6D0ABb1C4e6A48A4eF1c04 on Ethereum and call the addGauge function with the following arguments:
gauge(address):0x6bA97C44AecF7CC15B05947c172a6D797cE96693 gaugeType(string): Ethereum gauge(address):0x3c982431ffDE3447a2086495631d1Af27bD5686D gaugeType(string): Arbitrum