[BIP-355] Enable R/sDAI<>DAI Boosted Pool Gauge on Ethereum

PR with Payload

Gauge Proposal Template:

Summary:

This proposal enables a Balancer gauge for a R/sDAI boosted pool on Ethereum Mainnet. By deploying this new pool, users will be able to borrow $R stablecoin on the Raft protocol and provide liquidity on a R/sDAI boosted stable pool without giving up the whole 3.49% DSR (DAI Savings Rate) accrued on DAI deposited in the DSR module. The deployment of this pool embraces the ongoing expansion of $sDAI, the yield-bearing version of DAI, and eliminates the opportunity cost that current LPs in DAI pools face. A future integration of sDAI as a collateral token in Raft could further strengthen the utilization of such a pool, allowing users to use sDAI to leverage up.

References/Useful links:

Link to: · Website: https://raft.fi/ · Documentation: https://docs.raft.fi/ · Twitter: https://twitter.com/raft_fi · Discord: Discord · GitHub: Raft · GitHub

Protocol Description:

Raft is a DeFi protocol that lets you generate $R by depositing liquid staking derivatives (LSDs) as collateral. R is a decentralized USD stablecoin with deep liquidity across many trading pairs and a stable peg. Raft provides a capital-efficient way to borrow while keeping your staking rewards. As more use cases for $R develop, users will be able to spend, swap, and earn with $R. Users will also be able to leverage up to 6x on different LSD tokens in a single atomic transaction.

Motivation:

The R/sDAI boosted pool on Balancer represents the natural evolution of the current R/DAI pool and will allow all Raft users to swap their borrowed $R into $sDAI (or any other asset via multi-step swaps). Users holding $sDAI can earn the DSR yield accrued on the underlying DAI deposited in the DSR module and then use all money markets, DEXs, liquidity pools and vaults, NFT marketplaces, and all other products, on every chain where $sDAI can be bridged.

Specifications:

1. Governance: The Raft protocol is governance-minimized. This means nobody controls any key part or mechanism affecting the core protocol functionality. There is no way to pause the smart contracts. The Raft team only has the ability to adjust fees

2. Oracles: The pool relies on price feeds from Chainlink and Tellor

3. Audits: Raft is audited by Trail of Bits and Hats Finance

• Trail of Bits audit - May 2023

• Hats Finance audit competition - May 2023

4. Centralization vectors:

• Liquidations are permissionless (anybody can liquidate)
• The key parts of Raft protocol are immutable
• Liquidity Committee 3 Raft team members. More to be added in the future as the Raft governance evolves

5. Market History: Raft was launched on June 5th 2023, and has attracted approx $53m TVL. The Raft team has worked with the Balancer community to launch two successful pools (see $R here, the R/DAI pool on Balancer here and $sDAI here) we would like to continue being a proponent of Balancer going forward.

6. Value: The R/DAI pool deployed on Balancer has been among the top 3 pools on Balancer by trading volume in the last few weeks, gathering $ 42 mln TVL in less than a month. We expect the R/sDAI pool to generate an even higher volume due to the enhanced capital efficiency of holding $sDAI instead of $DAI, which will benefit all LPs and users of Raft.

Links to pool: 0xbF2ef8bDC2fC0F3203B3a01778E3ec5009AEEf33 Links to gauge: 0x882f961Def46deadAcf31798B295834a5b6d0c86

Specifications: 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): 0x882f961Def46deadAcf31798B295834a5b6d0c86 gaugeType(string): Ethereum