[BIP-238] Enable wstETH/bb-a-wETH Gauge [Ethereum]
Summary:
This pool uses the ComposableStablePoolFactory-v3 1 which addresses the reentrancy vulnerability disclosed during February 2023. This gauge is uncapped, and would enter as a “core pool” under BIP-19. This means 65% of 50% of yield generated by this pool is to be used for bribing for votes on it via Hidden Hand.
The pool wstETH/bb-a-wETH is to replace the primary wstETH/wETH pool on Balancer v2. The current wstETH/wETH contains $346,306,704 in TVL at the time of writing and is the largest pool across all Balancer v2 deployments.
References/Useful links:
Protocol Description:
This pool utilises wstETH and linear pool bb-a-wETH which deposits wETH into Aave v3 wETH reserve. The linear pool utilises a wrapper developed by Aave Companies.
Motivation:
Migrating from wstETH/wETH to wstETH/bb-a-wETH is expected to generate an additional 36 bps (180/2 x 0.5 x 0.8) of yield for Liquidity Providers (LPs) after fees and bribes relative to the current pool. This is due to the Aave v3 wETH reserve generation 180 bps of deposit yield. Historically, this yield has been higher.
Excluding token emissions, the inclusion of the bb-a-wETH linear pool, increases the passive yield for LPs by an estimated 22.5%, (0.36%/1.60%). This is equivalent to >5x the swap fee APR at the time of writing.
Specifications:
- Governance: Find more information about governance on Lido’s forum.
- Oracles: wstETH Oracle, see here bb-a-wETH Oracle: TBA
- Audits: For Lido Protocol and Aave v3, see below
Disclosure:
This proposal is the sole work of @Llama contributor, @Matthew_Graham, via the legal entity TokenLogic. Llama is a Service Provider to Aave DAO.
Off-Chain Vote
Yes, let's do it
3.8M veBAL100%
No, this is not the way
0 veBAL0%
Abstain
0.32 veBAL0%
Quorum:190%
Timeline
Apr 05, 2023Proposal created
Apr 06, 2023Proposal vote started
Apr 10, 2023Proposal vote ended
Feb 03, 2026Proposal updated