Background
Raft, a decentralized lending protocol, allows users to mint R (a USD stablecoin) by depositing stETH as collateral. R emerges as the premier Ethereum USD stablecoin that relies exclusively on stETH (Lido Staked Ether) for backing. Our objective is to strengthen R’s position as the go-to stablecoin in DeFi, ensuring its liquidity across numerous trading pairs and maintaining a reliable peg.
Overview
As we approach the Raft protocol launch scheduled for the week commencing 5th June 2023, we are keen on co-incentivizing the R/DAI and R/wstETH pools directly with LDO tokens together with Lido.
This will necessitate the introduction of additional reward tokens on Aura for these pools, a move that requires a governance vote for contract implementation. Besides providing Raft with the needed flexibility during this crucial launch period, allowing LDO token rewards also appeals to platform-independent liquidity providers and can be a useful user acquisition strategy for Balancer and Aura.
Direct LDO incentives will be gradually reduced, with Raft and Lido shifting towards direct Aura gauge incentivization. In the future, Raft and Lido will jointly bribe Aura to direct emissions to R/DAI and R/wstETH pools, with expected bribes (paid in ETH and DAI) amounting to hundreds of thousands of USD directed towards gauges each month.
Proposal Details
This proposal aims to enhance Raft’s collaboration with Aura. Considering Balancer as its primary hub for liquidity, Raft plans to continue directing significant incentives and efforts to boost liquidity on this platform. Enabling additional rewards on these pools allows Raft the flexibility to customize incentives that extend beyond BAL tokens over the next few weeks as we launch the protocol.
Raft wants to have the optionality to add additional reward tokens on Aura to the R/DAI and R/wstETH gauges, which requires a governance vote in order to set up the contract.
Specification
DAO multisig will call setExtraReward on this “stash” for the R/DAI and R/wstETH pools using the tx builder data below. A new “VirtualRewardPool” would be created, and would allow a reward token to be sent to this stash, queuing it on the new virtual reward pool. Any reward token sent there would be queued over the following week.
{
"version": "1.0",
"chainId": "1",
"createdAt": 1680530275128,
"meta": {
"name": "Transactions Batch",
"description": "",
"txBuilderVersion": "1.13.3",
"createdFromSafeAddress": "0x5feA4413E3Cc5Cf3A29a49dB41ac0c24850417a0",
"createdFromOwnerAddress": "",
"checksum": "0x1eef9cdee0b4ae7aa85d8386a00ca20ec84fe739acded019a5351543520e8aa9"
},
"transactions": [
{
"to": "0xCe96e48A2893C599fe2601Cc1918882e1D001EaD",
"value": "0",
"data": null,
"contractMethod": {
"inputs": [
{
"internalType": "uint256",
"name": "_pid",
"type": "uint256"
},
{
"internalType": "address",
"name": "_token",
"type": "address"
}
],
"name": "setStashExtraReward",
"payable": false
},
"contractInputsValues": {
"_pid": "97",
"_token": "0x5A98FcBEA516Cf06857215779Fd812CA3beF1B32"
}
},
{
"to": "0xCe96e48A2893C599fe2601Cc1918882e1D001EaD",
"value": "0",
"data": null,
"contractMethod": {
"inputs": [
{
"internalType": "uint256",
"name": "_pid",
"type": "uint256"
},
{
"internalType": "address",
"name": "_token",
"type": "address"
}
],
"name": "setStashExtraReward",
"payable": false
},
"contractInputsValues": {
"_pid": "98",
"_token": "0x5A98FcBEA516Cf06857215779Fd812CA3beF1B32"
}
}
]
}
Voting Procedure
This forum post will remain active for 1 day before the Snapshot proposal is initiated. We value your input and encourage an open dialogue on this matter.
Please note that the discussion period for this proposal is shorter than usual. We plan to finalize adding rewards to the R/DAI and R/wstETH pools by Monday 5 June, and therefore, we kindly request that the discussion period and the Snapshot voting take place before this date. Your timely participation is greatly appreciated.
The voting will follow a single-choice format. You can either vote “For” or “Against” this proposal, or you may choose to abstain. Voting “For” this proposal implies your support towards establishing the flexibility to add extra rewards to the R/DAI and R/wstETH pools.