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[BIP-81] Enable wstETH/bb-rf-aUSD/bb-rf-aWBTC 50/25/25 Gauge [Optimism]

Voting ended over 3 years agoFailed

Summary:

This pool uses the new weighted pool factory which allows us to apply the protocol fee to yield bearing tokens. bb-rf-aWBTC is Beets Reaper Aave Boosted WBTC, which means we're using a linear pool to deposit WBTC into a Reaper WBTC Vault which only deposits into Aave. Reaper handles the autocompounding of any OP rewards which adds additional yield. For reference, Reaper is a fork of Yearn v2 run by the Byte Masons who are talented developers in their own right. BeethovenX has a close working relationship with the Byte Masons. In the absence of an Aave v3 compatible atoken wrapper this arrangement represents the best path forward, and arguably it's better than using a wrapper since we get the additional compounding benefit. The kind of vault we're using has held 9 figures of TVL and been thoroughly battle tested so it should add a negligible risk premium.

bb-rf-aUSD represents boosted USDC, USDT, and DAI. wstETH is wrapped staked ETH by Lido.

References/Useful links:

Link to: • Website • Documentation • Github Page
• Communities

Protocol Description:

WBTC is wrapped BTC by BitGo. USDC is the dollar backed stablecoin issued by Circle. DAI is the decentralized overcollateralized stablecoin by MakerDAO. USDT is the dollar backed stablecoin issued by Tether. wstETH is wrapped staked ETH by Lido.

Motivation:

We aim to be the primary liquidity destination for wstETH on Optimism. Part of that strategy is adding wstETH to weighted pools with non-correlated assets to help generate additional trading activity. This pool is a variation on the popular "tricrypto" pool on Curve. By giving wstETH a 50% weighting we'll collect more fees on the yield side without sacrificing much if any trading efficiency compared to equal weighted.

Specifications:

  1. Governance: Find more information about governance on Lido's forum.

  2. Oracles: This pool relies on a rate provider for wstETH which the Orb Collective integrations team graciously deployed. See here.

  3. Audits: See here.

  4. Centralization vectors: See here for information on this.

  5. Market History: See here.

  6. Value: We will earn the protocol fee on wstETH, bb-rf-aWBTC, and bb-rf-aUSD yield, plus trading fees. As a reminder, protocol fees on Optimism are split 50% to Balancer (passively to DAO & veBAL) and 50% to BeethovenX. Of BeethovenX's 50%, half is returned as incentives on Optimism pools either via bribes or direct LM. The other half is split between funding the team and accumulating veBAL/auraBAL/vlAURA per this recent proposal. Thus emissions towards this gauge both benefit passive veBAL and serve to help our flywheel accelerate our growth on Optimism.

Link to pool Link to gauge: 0xa26B3523227e300Ff8eCA69CD3b0bdcbd2Db0313

Off-Chain Vote

Yes, let's do it
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No, this is not the way
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Timeline

Sep 29, 2022Proposal created
Sep 29, 2022Proposal vote started
Sep 30, 2022Proposal vote ended
Oct 26, 2023Proposal updated