Authors: Matt | Alfalfa or Spanky with support from the Aura Maxis
This proposal will run contemporaneous with but is contingent on Balancer governance’s adoption of [BIP-338] Enable 55/45 auraBAL/wstETH Gauge [Arbitrum]. This seeks to modify AIP-26 by re-allocating from that AIP’s prior auraBAL stable allocation, for at least 10 gauge cycles, each of 7.5k of Aura, to be used to incentivize the 55/45 auraBAL/wstETH pool on Arbitrum in the manner authorized by AIP-26 (and on HH’s Aura market on Arbitrum once launched by HH), with the remaining Aura for the auraBAL stablepool to be used for each such cycle per the parameters of AIP-26.
Motivation and Background
AIP-31 Arbitrum Deployment was recently adopted by Aura governance. With Aura’s Arbitrum integration upon us, Aura is seeking Balancer gauge approval per [BIP-338] Enable 55/45 auraBAL/wstETH Gauge [Arbitrum] to establish auraBAL liquidity on Arbitrum. The approval of this gauge for the 55/45 auraBAL/wstETH pool will set up a successful launch on Arbitrum and provide liquidity for auraBAL. The 55/45 weight of the pool will facilitate trading and help generate more trading fees and wstETH yield for liquidity providers and the Balancer protocol, along with other core pools on Arbitrum. Balancer on Arbitrum already has over $11mm in wstETH/wETH liquidity that will promote swapping between auraBAL, wETH, and wstETH.
The purpose of this proposal is to modify AIP-26 to ensure sufficient incentives are allocated to the 55/45 auraBAL/wstETH pool on Arbitrum to ensure liquidity for auraBAL on Arbitrum.
To allocate, for 10 recurring gauge cycles, 7.5k of AURA previously allocated to the Mainnet auraBAL stablepool per AIP-26 and instead use this 7.5k of Aura each round to incentivize the 55/45 auraBAL/wstETH pool on Arbitrum in the manner established by AIP-26, provided that these incentives for 55/45 auraBAL/wstETH may also be used on Hidden Hand’s Aura market on Arbitrum once launched by Hidden Hand. The balance of the 32.5k Aura allocation for each gauge round per AIP-26 will continue to be allocated to the auraBAL stablepool on Mainnet per the terms of AIP-26.
Again, this proposal will run contemporaneous with but is contingent on Balancer governance’s adoption of [BIP-338] Enable 55/45 auraBAL/wstETH Gauge [Arbitrum].
The intention is for this proposal to go to vote in the Snapshot round commencing on Thursday, June 22. Please review and provide any questions or comments through Thursday, June 22. We appreciate and encourage an open discussion.
The vote will follow a single-choice format: “For”, “Against,” or abstain from voting:
A vote “For” will authorize the modification of AIP-26 in accordance with the above Proposal section to provide incentives for the 55/45 auraBAL/wstETH liquidity on Arbitrum, assuming [BIP-338] Enable 55/45 auraBAL/wstETH Gauge [Arbitrum] is adopted by Balancer governance.
A vote “Against” means you do not want AIP-26 to be modified to provide incentives for 55/45 auraBAL/wstETH liquidity on Arbitrum even if [BIP-338] Enable 55/45 auraBAL/wstETH Gauge [Arbitrum] is adopted by Balancer governance.