[Balancer] [FINAL] [STIP - Round 1]


Provide personal or organizational details, including applicant name, contact information, and any associated organization. This information ensures proper identification and communication throughout the grant process.

Applicant Name:

Balancer DAO

Project Name:


Project Description:

Balancer is an AMM which has been at the forefront of DeFi launching its v1 in early 2020, being in Arbitrum since Q3 2021, and currently holding #2 position as the largest DEX by TVL on the chain.

Team Members and Qualifications:

Mike B, Tritium, Shakotan, Burns, Danko

The application comes from the community & ecosystem driving arm of Balancer, the Maxis. The Balancer Maxis, alongside community contributors (aka Ballers), handle most things operationally for the Balancer Protocol including but not limited to, governance management, reviews, business development, partnership management, automation of tasks to further decentralize and community support and other work within the ecosystem.

Project Links:


Contact Information:


@danko8383, @mikeisballin, @tritium_vlk



Email: arbitrum@balancer.finance

Do You Acknowledge That Your Team WIll Be Subject to a KYC Requirement?: Yes


Detail the requested grant size, provide an overview of the budget breakdown, specify the funding and contract addresses, and describe any matching funds if relevant.

Requested Grant Size:

1.2M ARB = 150,000 ARB per 2 week tranche for 16 weeks.

It seems that far more than the 50M $ARB has been requested by various grants. Upon analysis of the asks and programs presented, we feel our current ask is reasonable.
The program/automation specified here can function with any amount of $ARB really, and we are happy to take part in a process of normalizing the ask between grants. We would ask potential grantees and delegates to try to keep it focused on the good of the Arbitrum Ecosystem and avoid being overly competitive through any such process

Grant Breakdown:

The purpose of this grant is to augment economic activity on Arbitrum by building an autonomous mechanism for distributing incentives in the form of ARB to boost all Balancer liquidity across the Arbitrum network. There are certain criteria that boosts certain asset classes and pool types depending on the composition and surrounding integrations of particular pools.

Balancer has already initiated this incentive program using the ARB allocated during the original DAO airdrop. The nature of the automated incentives program proposed for this initiative is as follows

There is a pool of 40,000 ARB weekly to augment incentives on Balancer Arbitrum pools.

Each pool is given a weighting that is determined by the following metrics:

  • Each pool gets a base value depending on how much veBAL vote weight the pool has
  • An additional dynamic multiplier is applied based on the revenue generated from said pool
  • An additional static multiplier is applied based on the category of the pool, with the categories defined below

Balancer Pool with veBAL Voting Weight: 1x

This is the base number dependent on the total vote weight for a particular pools gauge and will serve as the base for the below multipliers

Pool Efficiency: 1-3x

This multiplier is dependent on the amount of revenue a pool has earned relative to the BAL emitted to it. This makes sure that pools that perform well relative to the incentives it has will be rewarded with extra incentives.

This is calculated as feesEarned/(value of bal emitted + 1)


Ecosystem Integrations: 1.5x

Pools with >500k of TVL deposited through external protocols such as Pendle style yield splitting, money markets using pool tokens as collateral, and other partner integrations.

Core Infra: 1.75x

Pools that serve as a core piece of infrastructure, such as stablecoin pairs, LST pairs, and 8020 governance systems.

New and Novel AMM types: 2x

For non-Balancer created custom pool types built upon Balancer that demonstrate an innovative approach to AMM design. This includes Gyro E-CLP pools and Xave FX pools. New AMMs may be moved from New and Novel to one of the other 2 categories after an initial period of extra boost to help highlight new tech.


Note, a pool can only get one of the above 3 multipliers, whichever is highest, and is applied additively along with the pool efficiency multiplier. The max multiplier for a pool is 3x, and any multiplier above 3x will be rounded down to 3. Individual pools are capped at 10% of weekly ARB distributions, with the exception of LST pools which are capped at 20%.

Each pool then gets its share of the 63,750 weekly ARB directly added as secondary incentives on the gauge according to their relative total weighting determined by the above factors.

Additionally, 11,250 ARB will be used to incentivize Core liquidity, specifically the USD 4pool and wstETH/4pool each week. This, along with our deep wstETH/weth liquidity, will allow us to route between all major stables, weth, and wstETH. The list of pools is subject to change.

Finally, note that the reasons for boost and multipliers as well as fixed allocations may be changed by Balancer governance. We welcome members of the Arbitrum Community to come talk to us about ideas/suggestions they have on how to adopt the program and/or to bring governance around these changes.

Funding Address:

1.2M ARB to Balancer LM Multisig: 0xaF23DC5983230E9eEAf93280e312e57539 (in biweekly tranches)

Funding Address Characteristics:

Arbitrum LM Multisig - controlled by 3/6 Balancer Maxis.

Contract Addresses:

$ARB ChildChainGaugeInjector: 0xf23d8342881edecced51ea694ac21c2b68440929. Controlled by the LM Multi-sig.
Arbitrum veBAL voting: Balancer

$ARB will be sent by the LM Multisig into the $ARB Injector contract on a biweekly basis as funds become available. The payload to send these funds will include a payload that configures the injector to distribute funds to various Balacer Pools through our gauge system and based on veBAL voting. The injector will then maintain a steady stream of these funds for a 2 week period.

Funding from the injector will flow to a dynamic set of veBAL gauges based on veBAL voting so a specific list of addresses can not be provided. The table below includes links to all of the current gauge addresses that would receive funds should they be paid out based on voting over the last 2 weeks.

Gauges accept Balancer Liquidty Pool tokens (BPTs) as deposits, and emit rewards based on deposits. Gauges can be added to the BAL emissions system following a governance process.

ARB emissions for this program are directed based on signal voting by veBAL holders, which take effect weekly at 00:00 GMT on Thursday. Once the program begins, new CSV files that describe the exact amounts payed in a human readable fashion will be created by each bi-weekly automation run in this GitHub Repo or one similar to it. The Dune Dashboard will also provide detailed information on where $ARB as well as other reward tokens are flowing and how it changes over time.

This program provides a way for DAOs who were not able to directly participants in this program to benefit from additional ARB incentives, as well as Balancers native emissions and $AURA emissions provided when using Aura Finance. We warmly invite DAOs looking for liquidity to touch base via our Discord for help configuring optimal liquidty, working through the governance process and understand the economics of it all.


Clearly outline the primary objectives of the project and the Key Performance Indicators (KPIs) used to measure success. This helps reviewers understand what the project aims to achieve and how progress will be assessed.


Ease the Cost of Liquidity to Ecosystem Projects

Liquidity is an extremely important aspect for projects to thrive. We hope by augmenting Balancer pools on Arbitrum, we can cheapen the cost of liquidity to all projects on Arbitrum looking for a home for liquidity.

Deepen Core Liquidity on Arbitrum

It is essential for many DeFi applications, primarily money markets, to have deep liquidity for protocol liquidations. We hope that this grant will result in this liquidity to be usable across the thriving Arbitrum Defi ecosystem for major assets and LST’s.

Foster Innovation in the AMM Space

We have observed projects have great success by building their custom AMM’s on top of Balancer flexible architecture and we hope to encourage more projects to build out AMM’s to suit their needs.

Increased Adoption

We are determined to further drive the adoption of Arbitrum on Balancer as a major part of the ecosystem.

Our primary objectives for this grant are therefore:

  • Extend the length and size of the currently running program
  • Demonstrate to the Arbitrum DAO, Foundation and Ecosystem that Balancer is a measured and responsible DAO with deep experience in incentive management.
  • Increase the number of pools and projects using Balancer and veBAL to host liquidity.
  • Ensure that we’re not left behind as other DEXs receive large grants that give them an outsized advantage.
  • Increase LSD liquidity on Arbitrum and introduce wstETH as a viable pairing token for better returns for LPs.

Key Performance Indicators (KPIs):

  • Number of projects participating in the program
  • BAL emissions flowing towards pools on Arbitrum (absolute / %)
  • Number of pools participating in the program (receiving votes from veBAL)

What Balancer has done with the Arbitrum DAO Airdrop:

Of the circa 3 million ARB awarded to Balancer in the initial airdrop, 2 million was deposited into a liquidity pool with equal parts AURA and BAL. The remaining 1 million was allocated towards matching bribes placed by DAOs to support Arbitrum liquidity. You can see the previous distributions per pool here.

Since then, we have spent more time thinking about this system, and created an automated system to allocate a fixed amount of ARB per week to pools there based on veBAL voting. BIP-429 describes how this program will function with funding of 40,000 ARB per week and provides some example data for the last voting round given these parameters. The automated vote-based nature of the system ensures alignment between the protocol and LPs, as pool incentives flow to their respective pools based on transparent on-chain votes.

How will receiving a grant enable you to foster growth or innovation within the Arbitrum ecosystem?:

New Arbitrum protocols need liquidity to launch and succeed. This grant/program will allow economically intelligent builders to build very cost effective liquidity natively on the Arbitrum network.

Justification for the size of the grant:

As this grant comes to fruition, many DEXes will be able to offer higher yields. It is important that Balancer can remain competitive as the second largest DEX for Arbitrum TVL. For this reason, we invite the size of our grant to be adjusted to be in line with other grants offered to DEXes in order to create a fair playing field.

The current program running on our airdrop with 40k ARB per week is starting to gain traction, but is planned to end around November 3rd.

Balancer currently emits a total of 121,929 BAL (about 400k USD) per week. We believe this program will help direct more emissions into the Arbitrum ecosystem. We believe the described mechanism to be great for aligning Arbitrum ecosystem projects with Balancer and the greater community which benefits from deep on-chain liquidity native to the Arbitrum network.

Example numbers based on the current situation:

Here is an example of how 200000 ARB (based on our original ask) would be distributed had it been distributed between 07 September - 21 September, 2023. A new table for the most recent 2 week epoch, distributing 150,000 $ARB over 2 weeks will be provided in the comments of the Forum before the end of Friday October 6th.

symbol Boosted veBAL weight distribution %distribution Bonus Arbitrum Gauge Address
wstETH/rETH/cbETH 1.39 33076 16.54 Vyper_contract | Address 0x2eB5661002b68EBE887d29d415c3A3b52536912C | Arbiscan
rETH-WETH-BPT 1.11 27968.04 13.98 Vyper_contract | Address 0xd6B875d62c2661eaB66472F36c672e4B512f1135 | Arbiscan
RDNT-WETH 2.62 20000 10 Vyper_contract | Address 0xcf9f895296f5e1d66a7d4dcf1d92e1b435e9f999 | Arbiscan
DOLA/USDC BPT 1.11 20000 10 Vyper_contract | Address 0xd956246EA5b06DEa930F0A7feC1FFf000436e3f2 | Arbiscan
55auraBal-45wsteth 0.824 20000 10 Vyper_contract | Address 0x82d2c7B67Eaa5028c89BE86CeA8e1DF5bd2119A1 | Arbiscan
wstETH-WETH-BPT 0.603 13329.6 6.664 Vyper_contract | Address 0x260cbb867359a1084eC97de4157d06ca74e89415 | Arbiscan
ankrETH/wstETH-BPT 0.49 12942.47 6.47 Vyper_contract | Address 0xfC745035F31BCbaEb2D1a89aA9171495c671F6cE | Arbiscan
50tBTC-50WETH 0.38 8358.82 4.17 Vyper_contract | Address 0x011417BBED6FC9cefF36C032D431b0eFcBA7f8B3 | Arbiscan
USD 4POOL-BPT 0.28 22295.96 11.14 15,000 Vyper_contract | Address 0xa14453084318277b11d38FbE05D857A4f647442B | Arbiscan
2BTC (tbtc/wbtc) 0.194 4305.35 2.15 Vyper_contract | Address 0xb438c6cc53315FfA3fcD1bc8b27d6c3155b0B56A | Arbiscan
50DFX-50WETH 0.094 2373.56 1.19 Vyper_contract | Address 0x04fc019017eD3F921D5ec11fFf84B870744BA0d1 | Arbiscan
50MAGIC-50USDC 0.014 349 0.174 Vyper_contract | Address 0xeF767E740D83d410794519c2F93Db32e44359a5C | Arbiscan
wstETH-4POOL 0 15000 7.5 15,000 Vyper_contract | Address 0x138E37c3885169DB38e046D5c814C0e95566566c | Arbiscan
symbol unboosted vebal weight distribution %distribution bonus
Total 6.19% 200000 100 30,000

Note: We expect this pool list to increase over time and is reflective of the pool list from the last 2 epochs

Requested Grant Size

ARB Per Week: 75,000 for 16 weeks (1.2 million ARB)

Total ARB Requested:


BAL per week required at current pricing for 1/1 matching:

If the program started today 7582($24,800) BAL would be flowing to match 75,000 ARB($66,000).
In program incentives follow voting which produces BAL emissions. The idea is that this will create competition for rewards increasing the amount of BAL emitted while the ARB remains fixed.

We expect the boost in ROI provided by the $ARB rewards to encourage more fee recycling and external voting and thereby increase BAL and AURA. It will likely take a number of 2 week epochs before the results can be fully understood.

Execution Strategy:

See github for more details, code, and results: https://github.com/BalancerMaxis/data_automation/blob/main/notebooks/arb_dao_grant_distribution/dao_grant.ipynb
In summary, here is how it works.

  • Every 2 weeks the script is run to ARB distribution based on current veBAL voting.
    • A json payload files for the Balancer LM Multisig on ARB to configure the rewards injector with these values.
  • The ARB Rewards Injector pays the amounts configured out such that it creates a consistent stream of rewards on the gauge.
    • The 2 week amount is split into 2 weekly injections which stream alongside AURA and BAL to depositors in the gauge.
      • Each new week of ARB injections when the last one finished and there is sufficient funding for the currently configured program.
    • The Rewards injector must always have sufficient funding for the next week to operate.
    • The Tokens in the rewards injector can be swept by LM Multisig.
    • Fund tranches will be claimed biweekly by Hedgey and sent to the injector along with a distribution schedule output by the automation described above.

Grant Timeline:

The funds will start being distributed within 15 days of the receipt of the first payment. The program will continue until all ARB is spent 16 weeks later. The LM Multisig is an operational multisig that can act reasonably quickly. It will work to try to ensure that rewards are claimed and schedules are loaded in sufficient time to prevent any gaps in emissions.

Funding Tranches:

Funding will be delivered in biweekly Tranches via Hedgey. The LM Multisig will handle claiming these tranches and funding/configuring the injector, which will facilitate a 2 week steady flow of funds.

The LM Multisig will execute the first time between 8 and 13 days after the first Tranche become available. This will allow a solid buffer to prevent tight time windows between 2 biweekly schedules.

Milestone Descriptions:

Milestone Goal Success Metric Source of Truth
% veBAL to Arbitrum Current: 6.19%, Failure: <9%, OK: 12%, Good: 15% veBAL voting or weekly reports from the distribution as shown above.
Increase number of projects with pools on Balancer 4 new projects bringing liquidity to Balancer on Arbitrum List of pools with gauges over >100k TVL (will add to dune dash)
Increase Arbitrum TVL ( % of Balancer TVL) Failure: <10%, OK: 10-30%, Good: 50%+ TVL of Arbitrum relative to the price of eth (to account for market swings)
Increase Volume on Arbitrum for Balancer Failure: <10%, OK: 20-40%, Good: 100%+ Cumulative 30d volume of Balancer on Arbitrum relative to the price of eth (to account for market swings)

Four monthly incentive distributions allocated through the injector. Continuous and uninterrupted distribution would serve as a testament to the program’s efficiency.
Balancer has a clear track record of distributing working incentives efficiently and on time, this can be verified on-chain.


Provide details about the Arbitrum protocol requirements relevant to the grant. This information ensures that the applicant is aligned with the technical specifications and commitments of the grant.

Is the Protocol Native to Arbitrum?:

Although Balancer was first launched on Ethereum, it was one of the first DeFi protocols to deploy on Arbitrum. Arbitrum is Balancer’s second largest network in terms of TVL and as one of the first movers to deploy on Arbitrum, it is now sitting at 2nd largest DEX by TVL behind Uniswap. With the investment of being a first mover to the ecosystem, and long time focus for the protocols business development strategies, Arbitrum is a key pillar in Balancer’s success now and in the future.

The Dune Plot below shows Emissions flows and Volume to Arbitrum. Clear growth can be shown in 2023. Notable events were the launch Radiant’s ve80/20 program on March 19th, and the start of the Airdrop Incentives Program on June 26th:

Balancer has been working with partners like Chainlink, 1inch, Lido, Rocketpool, Coinbase, Swell and others to create a robust LST ecosystem on Arbitrum with the goal of starting a movement focused on LST eth pairings for governance tokens and other uncorrelated token liquidity. To emphasize this point, the near term future will include utilizing Gyro-ECLPS to further increase the efficiency of LST liquidity. This is a dominant concentrated liquidity model, only offered via Balancer.

Balancers main pillar for growth on Arbitrum so far has been our unique offerings surrounding LST stableswaps. Further real growth for Balancer come from projects succeeding using Balancers tech, such as the Radiant launch on Arbitrum. These success are catalysts that spin up all our various flywheels and create excitement and engagement in the greater ecosystem.

BAL emissions are distributed in a decentralized way, and Balancer contributors have limited means to affect voting. Unlike many other DEXes applying here, we have chosen not to have direct control over emissions flows.

This program, combined with some engagement efforts should give us the ability to create more catalysts without offering special BD incentive deals to specific DAOs, which we generally try to avoid.

On what other networks is the protocol deployed?:

Balancer is currently deployed on Ethereum, Arbitrum, Polygon, Polygon zkEVM, Gnosis Chain, Base, Avalanche, and Optimism in a shared deployment with BeethovenX.

What date did you deploy on Arbitrum?:

The Balancer Vault was first deployed on Arbitrum on August 24th, 2021. See the transaction here.

Protocol Performance:

Arbitrum TVL $80m (2nd biggest chain on Balancer after Mainnet, 2nd largest DEX on Arbitrum)
30-Day trading Volume $90.2m
Analytics Balancer Analytics
Dune Dashboards https://dune.com/balancer

Protocol Roadmap:

Balancer’s protocol development is informed and led by Balancer DAO voters. You could track and consult votes using the Snapshot page here.

Audit History:

Security is the most important value for Balancer. Balancer is one of the safest Defi protocols for this very reason. The protocol has been extensively audited, you can find the audits linked below:

SECTION 6: Data and Reporting

Provide details on how your team is equipped to provide data and reporting on grant distribution.

Is your team prepared to create Dune Spells and/or Dashboards for your incentive program?:

Yes. The DAO is working on creating a Dune dashboard by the specified deadline or earlier. We have created similar dashboards in the past. Here is an example that tracks our Gas Spend. Balancer Lab also maintains a robust Dune presence which can be found HERE.


Please could you explain what Balancer has done specifically for the Arbitrum ecosystem?

Whilst Balancer is a large brand name from Ethereum, I personally struggle to see how it has onboarded new users to Arbitrum or deliberately tried to contribute and grow the ecosystem.

This framework should be entirely focused on supporting protocols that are committed to growing Arbitrum - unfortunately, Balancer has not done this and therefore I see this as a proposal that is primarily benefiting the protocol rather than the ecosystem.

In addition, Balancer is highly inefficient for bluechip pools compared to other DEXs such as Uniswap, TraderJoe, or Camelot. Incentivising this liquidity on a multichain DEX that is inefficient is therefore not in the best interest of Arbitrum.

I personally cannot see how this generates any new value for Arbitrum, and therefore I will be voting AGAINST.

1 Like

Hi @Tritium thank you for submitting. Could you please link the addresses of the pools or contracts being incentivized as per the application instructions?

Also please note that the Funding Tranches piece of the incentives framework has been replaced by funds being streamed biweekly.

1 Like

Thank you for your engagement, and for the professional and respectful manner in which you have chosen to do so.

The program specified for this grant enables a dynamic set of liquidty pools to receive $ARB incentives. For that reason it is not possible to provide an exact list of contracts that will receive incentives. I have updated the Contract Addresses section above to include quite a bit more information about this, including a link to the factory where new gauges that distribute incentives would be launched from and a description of the process whereby $ARB could start to flow there. The example table of current distributions should things start today has also been updated with links to each gauge contract.

Thank you for pointing this out. I have updated the proposal to take into account biweekly tranches. Part of that is moving the funds receiver from the DAO Multisig (6/11) to the more operational LM Mutlsig (3/6) in order to enable faster and more frequent interaction. As the amounts are smaller, we feel it is appropriate to leave the available funds under operational control. If this is not desirable, we can figure out how to operate from the 6/11.

We welcome any additional questions, are happy to update the proposal based on further, constructive feedback.


I would like to start by saying that I find this proposal extremely clear and well structured, which is appreciable after reading most of the other grant applications.

I think the Balancer team definitely deserves a grant, but the amount seems pretty high to me.

My main concern is about the efficiency of Balancer pools compared to the other main AMMs. Radiant volume in the last 24h would be a good illustration:

  • Uniswap: 1.1m TVL 250k volume
  • Balancer: 42.7m TVL 160k volume

We could say similar things with wstETH pools, especially with the recent campaign managed by Gauntlet, that will distribute ARB to wstETH pools on UniswapV3.

I will also add that, whilst I agree that we should keep a certain degree of fairness when distributing grants, it doesn’t mean that as a DAO we should consider all protocols the same way:

  • While efficiency should not be the alpha and omega for AMMs grants, it should definitely be a factor to strongly take into account
  • Native protocols are dedicated to the ecosystem and won’t receive a grant from anyone else, contrary to a protocol deployed on 5/10/20 different chains that can ask grants to each of them. That’s a very different kind of alignment.

In conclusion, I would be open to support a grant for Balancer with a similarly structured proposal, but not with such a large amount.


Perfect thank you! Your submission meets all requirements to be considered for a snapshot vote.


Gm @Perl , and thanks for your time and engagement, as well as the opportunity to talk a bit about Balancer :slight_smile:

While assessing the RDNT(80%)/WETH(20%) pool, it’s essential to consider that a sole focus on trading volume may not provide a comprehensive view. 80/20 pools primarily aim to minimize Impermanent Loss (IL) at the expense of reduced trading depth. This approach aligns with the needs of liquidity providers (LPs) seeking exposure to a token and willing to lock their liquidity to participate in governance and/or receive additional economic incentives.

Programs like Radiant’s highly successful dLP governance system use 80/20 pools to create a stable basis of locked liquidity. This brings security and stability in the market. This depth enables others to build and deploy technology, including other AMM pools, that are able to function better because this deep liquidity exists. On Coingecko right now:

So you see that while Uniswap is getting more volume, the Balancer pool provides nearly half a million dollars of 2% depth against just 23k from Uniswap. This creates price stability and a safe trading environment for the coin. My guess is that most of the flows through that pool are arbitrage with other CEXes and DEXes but that’s ok.

That’s exactly what a ve80/20 pool is for. RDNT has some of the deepest liquidity of any gov token on Arbitrum as a result. We consider our relationship with Radiant a shining example of how Balancer can help DAOs innovate and win with our unique technology. Besides veBAL itself, it is by far the most successful ve80/20 system to have seen the light of day so far. It is the crown jewel of our Arbitrum presence.

This grant program gives an extra boost to anyone who wants to try doing something similar with ve80/20 type systems. We stand ready to help and advise anyone interested in considering doing something like this themselves. Come talk to us!

This is a better volume contest.

Balancers LST pools are based on our Stableswap tech, which includes the ability for each token to have an independent exchange rate. As a result, stableswap pools with LSTs can have a number of different tokens that may or may not increase in value over time, and maintain concentrated liquidity around all these tokens at “natural” peg.

A similar CL position can be achieved with automated liquidity management tools built on Uniswap V3 tech, like Gamma, but it is questionable if they can operate in a way that prevents LPs from experiencing losses as liquidity is moved between ranges. I haven’t seen clear, detailed research comparing how wstETH/ETH LPs fair in both these situations, but perhaps we should do it/fund it some day.

Balancer has moved to using an amplification factor of 5000 on most of our LST stableswap pools. This is very similar to very narrow range uniswap liquidity, except that it constantly adjusts itself based on the relative value of the tokens based on their exchange rates.

Balancer recently launched a new wstETH/ETH pool with A-5000, the last one had a much lower AMP factor. For this reason, it makes more sense to compare yields in the last 30 days.

We are currently charging 0.01% fees along with Uniswap, and while 90 day volume numbers are not yet available, we seem to be in the same range as Uni. A big part of Balancer’s purpose is to optimise liquidity to fulfil the requirements of many stakeholders. We’ve found that lowering our swap fees to slightly below Uniswap can often attract a lot more liquidity, and even sometimes an increase in fees total fees to LPs as a result.

Your question has prompted a little test. We’ll drop the fees a bit. Let’s see how volume numbers change over the coming weeks.

Balancer has spent the last year learning how to use incentives, distributed through a decentralized decision making process (voting), to foster ecosystems and help them grow. Maybe there are lots of grants we could get, but we’re not interested in getting the most grant money. We’re interested in building real DeFi with our partners and frens. We believe Arbitrum to be one of the few chains where that is really going on. For that reason, we are very focused here. We’re not launching on every chain and getting every grant.

We’re being strategic and trying to be a foundational part and a good partner in the ecosystems we think are most likely to build cool and successful products in the coming years. That’s why we are here. That’s also why, as you pointed out, we showed up with a well written and thought out proposal/plan towards the beginning of the application period. This is not an afterthought and my job is not normally to go look for grant money.

This program will give us the ability to demonstrate what we have to offer, give us a chance, and engage a little bit. Come hang out and learn about Balancer. We’re a community of mostly builders here trying to help protocols and communities innovate, flourish and grow.

We will consider adjusting our ask towards the end of the review period, once we have seen what other DEXes ask for and why.


In wrapping this up, I want to emphasize that Balancer isn’t new to the game. We’ve been around, and we’ve made our mark by doing things a bit differently. Our unique approach to liquidity provision has carved out a special place for us in the DEX world. We’re not just another platform; we’re a toolkit for projects.

This grant allows us to continue to experiment with another tool to that toolkit that the generous $ARB airdrop initially enabled. It isn’t about Balancer getting or hordeing more resources; it’s about enriching the Arbitrum ecosystem with the unique value we bring to the table. So let’s not just look at this as a grant; let’s see it as a partnership. A partnership where everyone wins, especially the smaller projects that could really use a leg up. Let’s make some DeFi magic happen.


Thanks for the very detailed answer @Tritium!

Your analysis of liquidity strategy makes total sense. I agree with you that volume should not be the only factor, and being able to provide liquidity depth for a protocol is valuable regardless of the volume.
It’s still an important lack on efficiency that should be addressed at one point imho but I can’t really argue with the approach.

I wasn’t aware of your LST pools, so that’s my bad, I’m glad to hear that it can compete with other AMMs.

Regarding grants and multi chain deployments, so there isn’t any misunderstanding: I didn’t want to imply at all that you were trying to farm grants. But I really believe that from the DAO’s perspective, the native vs. multichain aspect should be taken in consideration.
For instance if we consider that you’re also deployed on direct competitors like Base and Polygon, is there anything different you’ve been doing or plan to do for Arbitrum in particular?


veBAL works in a way such that, we don’t have direct ways to allocate incentives. For this reason, we’re limited in how we can shift economic focuses to specific chains. The thing we want to test and learn about with this program is how we can use $ARB incentives to direct more emissions to innovation on Arbitrum.

In terms of technology: What we deploy, we deploy where we have a presence and can. That being said Aura is a very close partner of ours. Together we launched Balancer’s multichain boost system focusing on Arbitrum first.

The majority portion of our Airdrop funds was used to setup AURA/ARB/BAL liquidity on Arbitrum, which is the only source of deep AURA liquidity off mainnet, and the deepest source of BAL liquidity as well. Further we have worked closely with Aura to build liquidity for auraBAL there, and are coordinating aggregators like 1inch to make sure that tokens paired with wstETH (like auraBAL) always route well on Arbitrum. Basically if you want to farm Balancer and not pay for Mainnet gas, you find the liquidty and tooling you need homed on Arbitrum, with the ability to bridge to/from other chains.

The 7500 $ARB per week we requested to enable wstETH/USDC liquidty is part of our attempt to make it easy for DAOs to start pairing with LSTs. This offers better returns to LPs, but there are still some routing concerns that need a bit of work and attention. Again, due to the lack of ability to direct effect emissions flows, this grant and the robust ecosystem on Arbitrum creates a perfect opportunity for us to figure this out on Arbi.

Does that answer your question?

1 Like

Thanks a lot @Tritium for all your detailed answers.

I still believe the overall amount is too high for 3 months of incentives for not that many pools, but to be fair I could say the same about most of the other proposals.


With any luck more DAOs will join. That’s the idea. If you look carefully at the model/system proposed above, most of the yields just go to LSTs until more people start using it. The program offers a huge opportunity for more pools to flourish, and this program should not be considered a success if we don’t see that happen.

In terms of the ask, we’ll wait until the end of the review period and see where everyone ends up. We have no problem adjusting our ask if it makes sense/to be fair. Especially if we see other programs that we think look great and are likely to cement Arbitrum as the L2 for DeFi.

I welcome you to come back towards the end of the review period, and post here what you think a fair and reasonable ask should be. You seem a thoughtful person, we will take your advice into consideration. :slight_smile:

Thanks for the conversation ser.


I’ve been following this as a BAL community member involved in a partner project on BASE. The ability to create an LP for our project on Arbitrum (it is currently only on base) has a lot of value for us as it can get into a larger ecosystem/more mature. Our devs are already working on bridge infrastructure.

I was reading through some other grant proposers from projects I’m also familiar with (beefy) and don’t think chain agnosticism should be a penalty for a project. Ppl are just excited to be able to participate more materially on Arbitrum when it’s a tough time for the industry speakin gin terms of growth and liquidity. We are moving towards a more omni-chain ecosystem (CCIP, et al) anyway so I think it makes sense to actually try and gain more integration NOW before chain bridging is even more abstracted away for end users.

tl;dr hope this passes. We’re preparing to bridge into Arb in case it can. Then we can move some substantial liquidity over to flywheel with BALANCER and ARB.

Thanks everyone!

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Before I head to bed, it is worth nothing that the current yields on Balancer/Arbitrum are inclusive of 40k $ARB per week that is currently being distributed by this very same program, with the $ARB being paid out of our airdrop.

The full impact of this change and maximal available returns to LPs will be realized on Aura Finance in about a week due to the way rewards are buffered. Check it out.

Results of new distribution runs every 2 weeks can be observed by checking the CSV files HERE. The flow of tokens can be observed by checking the Injector linked in the grant application above.

Here are the governance details about that implementation:


As one of the largest LPs on Arbitrum I am 100% in support of this proposal as I will act as a mercenary LP and simply farm and dump ARB.

Directly incentivizing LPs is the most inefficient way to apply grant incentives. This has been pretty well studied and the Velodrome team on Optimism released a very detailed description of the problems applying incentives in the manner as described in this proposal. This is why the Solidly model is so much more efficient when it comes to grants. Nevertheless, I hope this proposal passes. Cheers.


Thanks for your support. We’ll take some time tomorrow and consider adding some dynamics to give LPs a nice flywheel with their $ARB so you can enjoy that instead ser.

Reading through all the proposals it seems clear that this is a strong narrative, a good thing to do, and a missing component from this proposal.

Would be delighted to have the largest LPs on Arbitrum taking more of a look at Balancer.


There is only a handful of protocols more respected and trusted than Balancer. The amount/TVL seems pretty reasonable in my view. Also the level of detail paints a clear picture of what the grant will look like.


Balancer already got a huge 3.8m ARB grant. I would like to discuss why the first grant failed to produce a beneficial outcome and why a second grant that is basically the same thing would lead to a different result.

1: It was an airdrop without any conditions. The amount was large due to the pivotal role Balancer has continued to play since pretty much it all began in developing the Arbitrum ecosystem.

2: Here is what we have done with our airdrop, we’re just now shifting to a program that looks like this grant because the old program wasn’t getting the $ARB out fast enough. We’re trying to get more $BAL and $AURA flowing to the Arbitrum chain. This new thing takes on learnings from that and gives it more gas.

3: We have not deeply analysed the impact of the program so far, and I unfortunately do not have easy access to data in order to verify my senses or make a good argument, but my senses tell me we’ve see a decent increase in $BAL emissions flows towards Arbitrum since the program began.

Things will be more clear by the end of January.

Really ser, come check us out! Balancer = Gud project. I’m sure the ones you are LPing on are gud too.

  1. So because no conditions were attached, it is somehow acceptable that your strategy was not effective?

  2. If you have not analyzed the effects of your strategy, or studied effective grant utilization on other chains like Optimism, then how would you even know what you need to do? I am confident that getting the ARB out faster to mercenary capital is not going to be of greater benefit to the Arbitrum ecosystem. Just dumping ARB on top of LP yield is the least possible effective way to distribute grant incentives. This is pretty well established at this point.

  3. You have not “deeply analyzed the impact of the program so far” but you are already asking for a second grant? No one cares what your intuitive spidey-senses tell you. At least have the respect and courtesy to show what you have done with the money they have already given to you… or is the reason you are not so forthcoming with an analysis because you didn’t do anything effective with the first one?

I can hardly believe you even posted all of that.

Is anyone from the Arbitrum Foundation paying attention?

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The change was made to move away from operating based on spreadsheets and custom crafted multisig payloads used in the initial BIP towards a more automated system. The original program was staged soon after the airdrop to demonstrate our intents.

This grant lined up well with our work to move that system to something more automated and easy to measure and work with. It happened to be that it fit well into the stated parameters of the grant. There’s been a lot of other stuff going on at Balancer as of late, we didn’t deem that analysis to be critical in making the change.

I’ll see if I can find data on emission flows to Arbitrum over time this week. They would give more color to this proposal, I agree.

I like to see this as a story of us using some of our $ARB airdrop to test and learn so we were well prepared for this.