[BIP-553] Enable 50KEP/50rsETH Gauge w/ 2% Cap [Ethereum]

PR with Payload

https://github.com/BalancerMaxis/multisig-ops/pull/821

Summary:

This KEP/rsETH pool to be a 50/50 Weighted Pool.

This gauge is capped at 2%, and would enter as a “core pool” under BIP-19 on the basis of 1% swap fee and rsETH being an Liquid Restaking Token (LRT) that generates yield.

References/Useful links:

rsETH

• Website
• Documentation
• Github Page
• Twitter

KEP

• Website
• Documentation
• Github Page
• Twitter

Protocol Description:

rsETH

rsETH is the third largest LST-based liquid restaked token on the EigenLayer ecosystem. It represents the liquidity of the underlying assets that have been deposited on Kelp Protocol. rsETH provides liquidity for the restaked positions, accumulates the rewards, and simplifies rewards management for AVSs.

Kelp has more than 185,000 ETH worth of assets restaked.

By providing liquidity for the restaked positions, rsETH allows for a seamless experience to engage with DeFi activities and maximize rewards.

KEP

KEP is a token representation of Kelp's EigenLayer Points, where 1 $KEP = 1 EL Point.

Launch Details can be found here.

Motivation:

Kelp is seeking to establish the KEP/rsETH on Balancer as the primary pool for KEP. This pool is expected to experience large trading volume by creating a secondary market for Kelp's EigenLayer Points.

Liquidity Providers can expect to receive KEP as well as the normal BAL and AURA rewards.

Specifications:

1. Governance:

• Kelp currently operates with a multi-sig wallet. The protocol is planning to transition to decentralized governance soon.

2. Oracles:

• rateProvider0 (for KEP): 0x0 (none)

• rateProvider1 (for rsETH): 0x746df66bc1bb361b9e8e2a794c299c3427976e6c

3. Audits:

• Kelp’s smart contracts are audited by Sigma Prime and Code4rena.

• Sigma Prime Report: https://kelpdao.xyz/audits/smartcontracts/SigmaPrime.pdf

• Code4rena: Code4rena | Keeping high severity bugs out of production

4. Centralization vectors: Centralization vectors currently are around upgradeability via proxy multi-sig and front-end hosting.

Our goal is to migrate Kelp away from these vectors.

5. Market History:

• KEP is to be launched 28th February 2024.

• rsETH represents more than 185,000 of restaked ETH and its trading history can be found here.

6. Value:

• This pool is a Core Pool and therefore will generate revenue for the DAO via rsETH derived yield and from the 1% swap fee.

Pool Details

Link to Pool: 0xFf42A9AF956617e4C3532eF2fC7567465EFE4909 Link to Gauges: 0xc6b65bc6bF4a5fF4D90fDf7f568cBF8C99419DA1

Specification

Transaction: The Balancer Maxi LM Multisig eth:0xc38c5f97B34E175FFd35407fc91a937300E33860 will interact with the GaugeAdderv4 at 0x5DbAd78818D4c8958EfF2d5b95b28385A22113Cd and call the addGauge function with the following arguments:

gauge(address): 0xc6b65bc6bF4a5fF4D90fDf7f568cBF8C99419DA1

gaugeType(string): Ethereum