PR with Payload

https://github.com/BalancerMaxis/multisig-ops/pull/2611

[BIP-116] Enable TETU/USDC 80/20 Gauge w/2% emissions cap (Polygon)

Summary

This proposal requests to increase the gauge cap for the TETU / USDC 80/20 pool from 2% to 5%.

The goal is to better reflect the pool’s maturity, sustained on-chain usage, and its role as the primary liquidity venue for the TETU token paired with a major stablecoin.

Background and Motivation

The TETU / USDC 80/20 pool is the canonical liquidity market for TETU, combining high protocol token exposure with a deep, highly liquid stable asset (USDC).

1. Core Liquidity Venue for TETU

• This pool represents the main price discovery and liquidity source for TETU.

• An 80/20 structure maximizes capital efficiency while preserving meaningful USDC depth.

• Increasing the gauge cap supports tighter spreads and improved trade execution.

2. Stablecoin Pairing & Risk Profile

• Pairing TETU with USDC significantly reduces volatility compared to volatile-volatile pairs.

• This improves:

  • LP risk-adjusted returns

  • Attractiveness for conservative liquidity providers

  • Overall pool stickiness during market stress

3. Emission Efficiency & Ecosystem Fit

• Higher gauge cap does not force emissions, but:

  • Removes a hard ceiling

  • Lets veBAL voters allocate emissions where demand naturally exists

• This aligns emissions with real usage instead of arbitrary limits.

4. Long-Term Liquidity Sustainability

• Deeper liquidity:

  • Improves user confidence

  • Supports integrations and routing

  • Reduces dependency on short-term incentive spikes

• A higher cap allows the pool to scale alongside ecosystem growth.

5. Fixed Supply & Full Community Ownership

• TETU has a fixed supply, and token emissions have fully ended.

• 100% of the circulating supply is already in the hands of the community — there are no future minting schedules, inflation mechanisms, or protocol-controlled token releases.

• As a result:

  • Gauge incentives do not subsidize inflation, but instead reward organic liquidity provision.

  • BAL emissions allocated to this pool support a fully circulating, market-driven asset, rather than compensating for ongoing dilution.

• This makes the TETU / USDC 80/20 pool structurally aligned with long-term sustainability and governance-driven incentive allocation.

Specification

If approved, this proposal will execute an on-chain transaction updating the gauge parameters as follows:

WeightedPool: 0xE2f706EF1f7240b803AAe877C9C762644bb808d8
Child Chain Liquidity Streamer: 0xeBEa61d761233b0f1733623FaafBd385eb5b00D7
Polygon Root Gauge w/2% cap: 0x1E0C21296bF29EE2d56e0abBDfbBEdF2530A7c9A

• Current cap: 2%

• Proposed cap: 5%

Conclusion

The TETU / USDC 80/20 pool is a mature, stable, and strategically important liquidity venue.

Raising its gauge cap to 5% enables emissions to better reflect real demand and long-term ecosystem value, while leaving full control in the hands of veBAL governance.