[BIP-409] Enable QI-WETH Gauge [Ethereum]

The BAL gauge would be for QiDao's Token distributor contract where users lock QI-ETH LPs. Address: [TBU]

After a lengthy governance procedure at QiDao, our DAO has decided to create this LP on Ethereum instead of Polygon. See vote here: https://vote.mai.finance/#/proposal/0xaf5e7037b61f6f48c90badc553b3149304b7b4ccaf8043b547ae5285c5df403e

Protocol Description:

QiDao is the most crosschain decentralized stablecoin protocol. Its stablecoin, MAI, is overcollateralized by decentralized collaterals. A detailed list of collaterals and risk profiles can be found here. MAI has been tested and maintained its peg during several market downturns, notably in May 2022.

Motivation:

QiDao is currently voting to transition its escrowed QI locking product to 80/20. This would transfer over 60% of QiDao’s market cap from a single QI locking product into an LP that would sit on Balancer.

Additionally, this LP would become the only liquidity sink for QI. 71,725,329 QI would be stored in this LP.

All of QiDao’s weekly revenue distributions would be used to incentivize users to lock QI-MATIC on Balancer. This may take the form of voting incentives if our DAO votes in favor of this. Currently, the protocol makes an average of $20,000 per week. $10,000 of that would be used in incentives for this pool.

Migrating QiDao’s main governance product to Balancer would help bring more users to Balancer’s Polygon deployment. QiDao has an extremely active governance community, with 3,455 users locked in escrowed QI. About half of those are active voters.

Specifications:

1. Governance: Provide current information on the protocol’s governance structure. Provide links to any admin and/or multisig addresses, and describe the powers afforded to these addresses. If there are plans to change the governance system in the future, please explain.

QiDao is controlled by a DAO. More info can be found here (link included separately due to forum restrictions).

QiDao is working with Safe and Chainlink on a crosschain module to fully automate protocol operations across multiple deployments. More here: https://twitter.com/chainlink/status/1687493603545780225?s=46&t=9GbqMNGsJaexsIuKntWpeg

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

QiDao uses Chainlink oracles to price collateral assets.

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

MAI: The protocol has been audited twice. Audits can be found here (link provided separately due to forum restrictions).

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.

The protocol runs on decentralized systems such as competitive liquidations, and vote-based collateral onboarding. No single person has admin controls over the protocol. The treasury and some part of the protocol are secured by a multisig of doxxed team members.

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.

QI’s beta with MATIC is above 85%. This means that QI’s volatility is almost the same as MATIC’s. As QiDao moves to ETH, the beta with ETH is expected to be similar to what has been observed with MATIC.

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?)

This pool would not only be the main source of liquidity for QI, it would also become the focal point of its governance system. QiDao is one of the oldest active DAOs in DeFi, with tens of thousands of participants. Having its community in Balancer would certainly bring more activity to Balancer.

QI-ETH LP: https://etherscan.io/address/0x39eb558131e5ebeb9f76a6cbf6898f6e6dce5e4e