Balancer STIP Program Updates #2

Balancer Bi-Weekly Update 15-12-2023


Recap of the Previous Two Weeks

ARB Received Last Disbursement: 171,429

**ARB Utilized as Incentives in the Last Two Weeks: 205,714.8

Contracts incentivized over the last 2 weeks: A CSV of incentived along with details about $ARB flows to each one and how they were calculated can be found here. These amounts of payment were queued and the required 205,714.8 $ARB sent for payment by this multisig transaction executed at 16:02 UTC on Friday December 1st. These payments will be streamed to stakers in the gauge by the injector and the gauge system for 2 weeks, ending today on December 15th.

recipientGaugeAddr symbol distribution
0xd6B875d62c2661eaB66472F36c672e4B512f1135 rETH-WETH-BPT 29336.41685
0xd956246EA5b06DEa930F0A7feC1FFf000436e3f2 DOLA/USDC BPT 20571.48
0xcf9f895296F5e1D66a7D4dcf1d92e1B435E9f999 RDNT-WETH 20571.48
0x2eB5661002b68EBE887d29d415c3A3b52536912C wstETH/rETH/cbETH 17347.25078
0xcF853F14EF6111435Cb39c0C43C66366cc6300F1 50GOLD-25USDC-25WSTETH 16457.184
0x972539E9d340a915775C004715f286a166F067Fd 80OVN/20wUSD+ 12841.82388
0xfC745035F31BCbaEb2D1a89aA9171495c671F6cE ankrETH/wstETH-BPT 12496.9535
0xD7a5122a4e88EC9fBE94301A0Bff6114ddFe5d4B STAR/USDC-BPT 11817.50769
0xa14453084318277b11d38FbE05D857A4f647442B 4POOL-BPT 11250
0x138E37c3885169DB38e046D5c814C0e95566566c wstETH-4POOL 11250
0x82d2c7B67Eaa5028c89BE86CeA8e1DF5bd2119A1 55auraBal-45wsteth 10593.69213
0x089a2E069700B0f2B16f69A6e02b01818ce22e7d D2D-rETH 9059.287889
0xeF767E740D83d410794519c2F93Db32e44359a5C 50MAGIC-50USDC 7075.447838
0x159be31493C26F8F924b3A2a7F428C2f41247e83 GOLD-BAL-AURA-wstETH 4114.296
0x96056DF5a61B758005a219a052D72085C45df92c 80PAL-20OHM 3286.512182
0x260cbb867359a1084eC97de4157d06ca74e89415 wstETH-WETH-BPT 2993.755657
0x011417BBED6FC9cefF36C032D431b0eFcBA7f8B3 50tBTC-50WETH 1821.524884
0xb438c6cc53315FfA3fcD1bc8b27d6c3155b0B56A 2BTC 1570.830247
0xc3522B0A58d9f12f33E542FC3c3C051b4AF01c83 DUSD-4POOL-BPT 1258.283317
0x04fc019017eD3F921D5ec11fFf84B870744BA0d1 50DFX-50WETH 1.07315257

Contract address label Form completed for all addresses: Yes

ARB left over: 137,143.2

Plan for leftover ARB: In the last round the decision was made to increase biweekly amount distrbuted to 205,714.8 for the remaining periods. As we can see later in the report, growth is occurring over time on the network and project diversity is also blossoming on Balancer. This higher amount of incentives will be maintained for the remainder of the program, spreading out the leftover amount with new incoming amounts from the Hedgey streamer.

Leaning into liquid staking derivatives, autocompounding assets such as plsRDNT, and yield bearing stable coins is the priority for Balancer collectively. By setting these pools in motion on the platform they will become self sustaining via the core pool cycle Balancer offers, and create sticky liquidity with underlying yield sources maximizing the value propostion of the projects who deploy on Balancer, the AMM itself, and Arbitrum as a whole.

Summary of incentives: Incentives were dispersed based on the CSV above, which shows where the ARB was sent based upon the plan outlined in Balancer’s FINAL STIP Round 1 framework. The current proposed method was not properly considering the boost for high fee earning pools due to a glitch in the automation Balancer DAO was using. Even with this, there has been an uptick in TVL and therefore fees on the platform. Last rounds data was skewed by not considering the yield fee Balancer takes, therefore emission allocations this round should be significantly more aligned with KPIs.

Since December 1st key increases of TVL have been seen across various pools. As incentives are taking shape in the Aura layer of the ecosystem we see lasting depth on Balancer with LPs entering the “set and forget” mentality. Highlighting the same pools from last round gives an emphasis on the growth across the board. The RDNT/WETH pool increased from 50MM to 60MM TVL and the average volume is up from 670k to 1.19 MM per day. Looking at the same liquid staking derivative pools from last round cbETH/rETH/wstETH, WETH/rETH, wstETH/WETH and ankrETH/wstETH are near all time highs for TVL, with the exception of wstETH/wETH. New LST pools are outlined below to show where we expect the next wave of popularity to be spread, on top of these already strong pools.

Currently total ETH LST TVL is up to 37.15MM from 29.72MM (stable pools plus weighted portions) and volume for the two week period in the 4 mentioned stable LST pools is over 34.75MM from the previous rounds, 15.26MM. Due to Balancer’s core pool incentive structure, as these LST pools increase in value their market share of rewards increases as well via self sustaining bribe mechanics.

To come full cirlce on the primary liquidity on Balancer four routing supported by the ARB STIP are the, 4POOL pool has has increased 5% at time of writing in TVL in the two week span and is averaging 2.2MM compared to previously 1.3MM in volume per day. Lastly the 4POOL/wstETH pool peaked at 1.1MM in TVL over this period, but is currently at 820k TVL down from last rounds 920k. Volume however ticked upwards from 230k last round to over 500k by the second rounds end.

Savy, ANKR , and Plutus were all mentioned last round as pools to keep an eye out for. The Savy and ANKR pools have yet to take part in the incentives cycle, and TVL respectively are at 128k and 18k. We will report further on these if they do begin to receive ARB.

The Plutus plsRDNT pool has begun to climb the charts though, as incentives from Radiant and Plutus have gone live via Aura. The pool will receive its first round of Balancer STIP incentives in the upcoming round.

Stats from Openblock Dashboard:

ARB_STIP_Stats_12_13.png Find it here in CSV form Additional Info / Disclosures to Multisig:

  • Tags for each contract address can be found in the csv above.
  • As described in previous report, an extra 171,429 $ARB was collected on our first biweekly run that started November 17th, it was requested that all $ARB is paid out by February 15th. As we were not expecting the second epoch of payments, going forward, 205,714.8 will be paid out evenly throughout the remaining rounds. Details can be seen on this sheet
  • During reviews we discovered a bug in dynamic boost calculation which depends on pool fees. We fixed it and now boost is calculated properly, giving more boost to large LST pools and putting down small TVL/Volume pools into lower ARB distribution bracket


Link to Dashboard showing metrics: Balancer Arbitrum Liquidity Growth Program dashboard

Average daily TVL: $108,024,193

Average daily transactions: 649

Average daily volumes: $7,059,866

Number of unique user addresses: 3224

Transaction fees: Average daily: $8,244

Plan For the Next Two Weeks

Amount of ARB to be distributed: 205,714.8

Contracts that will be incentivized: Contracts to be incentivied are outlined in this csv, subject to change as more gauges are added to the veBAL system on Arbitrum.

recipientGaugeAddr symbol distribution
0xcf9f895296F5e1D66a7D4dcf1d92e1B435E9f999 RDNT-WETH 20571.48
0xd956246EA5b06DEa930F0A7feC1FFf000436e3f2 DOLA/USDC BPT 19860.8646
0x2eB5661002b68EBE887d29d415c3A3b52536912C wstETH/rETH/cbETH 17989.48304
0xd6B875d62c2661eaB66472F36c672e4B512f1135 rETH-WETH-BPT 16905.88219
0xcF853F14EF6111435Cb39c0C43C66366cc6300F1 50GOLD-25USDC-25WSTETH 16457.184
0xfC745035F31BCbaEb2D1a89aA9171495c671F6cE ankrETH/wstETH-BPT 15103.15252
0xa14453084318277b11d38FbE05D857A4f647442B 4POOL-BPT 13551.45982
0x138E37c3885169DB38e046D5c814C0e95566566c wstETH-4POOL 11250
0xeF767E740D83d410794519c2F93Db32e44359a5C 50MAGIC-50USDC 10981.7052
0x260cbb867359a1084eC97de4157d06ca74e89415 wstETH-WETH-BPT 9975.426231
0x089a2E069700B0f2B16f69A6e02b01818ce22e7d D2D-rETH 8504.530115
0x972539E9d340a915775C004715f286a166F067Fd 80OVN/20wUSD+ 8402.455618
0x40F6bE0b26B229C4C3b2C3344e91f8eEe22a62fF plsRDNT-Stable 7693.685263
0xD7a5122a4e88EC9fBE94301A0Bff6114ddFe5d4B STAR/USDC-BPT 7427.12689
0x82d2c7B67Eaa5028c89BE86CeA8e1DF5bd2119A1 55auraBal-45wsteth 6775.126076
0x159be31493C26F8F924b3A2a7F428C2f41247e83 GOLD-BAL-AURA-wstETH 4114.296
0x011417BBED6FC9cefF36C032D431b0eFcBA7f8B3 50tBTC-50WETH 3567.202398
0x34BDBEcd3B911a8DCB17aC68B961a8D16db52673 wstETH/rETH/sfrxETH 3489.561844
0x96056DF5a61B758005a219a052D72085C45df92c 80PAL-20OHM 2256.805714
0xc3522B0A58d9f12f33E542FC3c3C051b4AF01c83 DUSD-4POOL-BPT 828.7230559
0x04fc019017eD3F921D5ec11fFf84B870744BA0d1 50DFX-50WETH 8.64942789

Contract address label Form completed for all addresses: Yes

Mechanism for distribution incentives: Distributions will be done every week via Balancer DAO’s ARB injector contract by sending direct incentives to the gauges of the respective pools in the Balancer ecosystem.

Summary of incentives plan: Incentives will be heading to the pools mentioned above over the next two week period. The pools Balancer expects to be highlights of the next report are the ones mentioned above, and these new pools joining the Arbitrum ecosystem. The plsRDNT pool which will be kickstarted increasing in magnitude over time as it scales up. This will have second order affects permanently locking RDNT/WETH tokens on the platform. The new LST pool to bring more yield bearing liquidity to the ecosystem is the sfrxETH tripool. While TVL is negligent currently, Balancer has placed a bribe to get incentives started and begin bootstrapping another LST juggernaught.

Summary of changes to the original plan: As stated above, biweekly distributions were increased from 171429 to 205714.2 $ARB in order to pay out the full amount before February 15th as requested. Aside from the increase in incentive density, the plan will be carried out as planned, with additional gauges as they approved by Balancer governance.


A smol update: Some minor changes to the Balancer STIP Program are being considered by Balancer Governance:

You can read/comment here: [BIP-XXX] Arbitrum LGP and STIP Adjustments - General Proposal - Balancer

Voting should take place on snapshot over the weekend, with the results being realized for the next round of STIP payouts at the end of next week.