RIP-18: Balancer Hidden Hand Whitelist

Summary:

Due to the success of the Balancer Hidden Hand market for both parties, our DAOs core contributors have explored different paths on how to increase synergies. With the introduction of the new Balancer improvement proposal, we think we have found the best way to do so and seek approval from our DAO to make this transition for them as smooth as possible by reducing their fees to 1% (this would not affect external bribers’ fixed fee of 4%).

The new BIP proposes the creation of a “core” designation that redirects the fees generated by different BPTs to flow back through Hidden Hand as bribes to increase adoption. All bribes put through Hidden Hand would be paid in USDC. Because Balancer has shown confidence in the Hidden Hand market and looked to integrate it as a core part of their flywheel, we are seeking to whitelist Balancer as a special-interest party in Hidden Hand where the bribes they put through their own market will only pay 1% fees instead of the usual 4% paid by external bribers. The split of 50-50 between the Treasury/DAO and rlBTRFLY lockers remains the same.

In return for the whitelisted fee of 1% for Balancer, Balancer has committed to supporting Hidden Hand as the only marketplace for veBal.