Balancer STIP Program Updates #3

Balancer Bi-Weekly Update 29-12-2023


Recap of the Previous Two Weeks

ARB Received Last Disbursement: 171,429 (KYC delays resulted in collecting 2 biweekly payments at the start of the program, details in change section below)

**ARB Utilized as Incentives in the Last Two Weeks: 205,249

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 171,429 $ARB sent for payment by this multisig transaction executed at 20:43 UTC on Friday December 15th. 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
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

ARB left over: 102,857.4

Plan for leftover ARB: The leftover ARB will be paid out over the following rounds as described in prior reports by distributing 205,714.8 for the remaining periods. The incentive amount coupled with favorable market conditions have led to a large increase in productive TVL on Balancer which will be outlined in detail in the summary section. The plan for Balancer is the same as it has been from the start, continue to target liquid staking derivatives for Ethereum and create a sticky liquidity cycle on the Arbitrum network.

Drilling down on this point, Balancer continues to expand the diversity on Arbitrum with new yield bearing assets each round. Ethereum LSTs will cotninue to thicken as the core pool flywheel is amplified by ARB, and plsRDNT has began to take off on Balancer as the hub for permalocked Radiant dlp. The next yield bearing asset to keep an eye out for is sFRAX, a stablecoin which will quietly begin to take over the market on Balancer with yield for our set and forget LPs to be able to count on as a capital efficient core pool.

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. As mentioned in the prior report, there was a correction made to the dynamic boost which pushes a larger share of incentives towards the higher performing pools in terms of fees earned. This, like the Balancer core pool models is one of the layers of optimization engineering our team works on day in and day out. This round has seen a much more efficient direction of incentives, and we can see the results begin to take affect. Our team is excited to see this adjustment continue to unfold on the network.

Looking back at where we were on December 15th, there have been healthy developments throughout the pools which were top earners last round. The Aura ecosystem has been instrumental in bringing partners like Plutus and Radiant up to speed quickly and efficiently, and we expect them to continue to do so as sFRAX comes further into the picture. To maintain the same comparison from last round we will look at the same pools; with some additional ones joining the center stage. The RDNT/WETH pool increased from 60MM to 74MM TVL and the average volume is mainting for now, this week at 1.15MM from 1.19 MM per day last round. Looking at the same liquid staking derivative pools from last round cbETH/rETH/wstETH, WETH/rETH, wstETH/WETH and ankrETH/wstETH have reached all time highs, with no exceptions. Our newest LST pool sfrxETH/wstETH/rETH is not only at it’s all time high, but has already reached 1MM in TVL. We expect these pools to continue to grow and facilitate large amounts of volume throughout the Arbitrum network.

The total ETH LST TVL is over 47.5MM at this point, for reference the previous round was 37.15MM (stable pools plus weighted portions) and volume for the two week period in the 5 mentioned stable LST pools is roughly 38.6MM while last round was 34.75MM. We expect these pools to continuously grow, and the fee on their yield bearing portion makes them extremely strong footholds for the DAO and LPs to thrive together in building.

The pools dedicated to routing liquidity on Balancer supported by the ARB STIP are the 4POOL and the 4POOL/wstETH pair. The 4POOL pool has has increased another 5% at time of writing in TVL to 5.15MM in the two week span and is averaging 1.9MM compared to previously 2.2MM in volume per day. The 4POOL/wstETH pool is at it’s all time high, just under 1.2MM in TVL. The volume over a two week period is holding steady at 500k for both this period and 500k for the previous.

Two pools we mentioned to focus on for this upcoming round were plsRDNT and the sfrxETH tripool. Both pools have climbed in TVL quickly this round with the plsRDNT pool at 800k TVL and sfrxETH tripool just over 1MM in 100% liquid staking derivatives of ETH. These pools are high fee earners in terms of organic yield from the underlying assets. We expect both of these pools to continue to scale up in the coming rounds.

Stats from Openblock Dashboard:


Additional Info / Disclosures to Multisig:

  • Tags for each contract address can be found in the csv above.
  • See previous report for any comments on the current payment schematic of ARB to align with the deadline of the incentive cycle end proposed by the Arbitrum Foundation.
  • Details can be seen on this sheet


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

Average daily TVL: $131,383,672

Average daily transactions: 347

Average daily volumes: $7,162,560

Number of unique user addresses: 3030

Transaction fees: Average daily: $11,508

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
0x2eB5661002b68EBE887d29d415c3A3b52536912C wstETH/rETH/cbETH 26487.22887
0xcf9f895296F5e1D66a7D4dcf1d92e1B435E9f999 RDNT-WETH 20571.48
0x40F6bE0b26B229C4C3b2C3344e91f8eEe22a62fF plsRDNT-Stable 20571.48
0xd6B875d62c2661eaB66472F36c672e4B512f1135 rETH-WETH-BPT 18267.7859
0xcF853F14EF6111435Cb39c0C43C66366cc6300F1 50GOLD-25USDC-25WSTETH 16457.184
0xa14453084318277b11d38FbE05D857A4f647442B 4POOL-BPT 15333.54932
0xeF767E740D83d410794519c2F93Db32e44359a5C 50MAGIC-50USDC 12512.86476
0xfC745035F31BCbaEb2D1a89aA9171495c671F6cE ankrETH/wstETH-BPT 11314.19744
0x050fBe33699E56B577c3D6f090eCE9870A0966bd sFRAX/4POOL 11024.82356
0x260cbb867359a1084eC97de4157d06ca74e89415 wstETH-WETH-BPT 10928.79902
0xd956246EA5b06DEa930F0A7feC1FFf000436e3f2 DOLA/USDC BPT 8908.531071
0x138E37c3885169DB38e046D5c814C0e95566566c wstETH-4POOL 5625
0x34BDBEcd3B911a8DCB17aC68B961a8D16db52673 wstETH/rETH/sfrxETH 4589.955902
0x159be31493C26F8F924b3A2a7F428C2f41247e83 GOLD-BAL-AURA-wstETH 4114.296
0x82d2c7B67Eaa5028c89BE86CeA8e1DF5bd2119A1 55auraBal-45wsteth 3675.066969
0x089a2E069700B0f2B16f69A6e02b01818ce22e7d D2D-rETH 3592.772756
0xD7a5122a4e88EC9fBE94301A0Bff6114ddFe5d4B STAR/USDC-BPT 3482.52921
0x972539E9d340a915775C004715f286a166F067Fd 80OVN/20wUSD+ 3467.376978
0x011417BBED6FC9cefF36C032D431b0eFcBA7f8B3 50tBTC-50WETH 1413.201779
0x2162abD00312a0496B4b72b20A6790Cc07268A25 Savvy TriCrypto Pool 982.5104612
0xb438c6cc53315FfA3fcD1bc8b27d6c3155b0B56A 2BTC 894.3150643
0x574c2146091Cced305A7ABa82d097DE36b736fac 50DFX-50WETH 795.8711718
0x96056DF5a61B758005a219a052D72085C45df92c 80PAL-20OHM 703.979768

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: The incentives structure will continue to be carried out as planned since the original awarding of the STIP. As new pools join the ecosystem there will be competition between the most efficient ones on a fee per emission basis to determine where the majority of incentives are directed. More efficient pools receive more incentives and over time facilitate the optimal use of ARB for the liquidity hosted by Balancer on Arbitrum. As new strong contendors join the ecosystem the competition becomes more fierce between pools, ultimatley leading to more TVL, fees, and diversity on the platform.

The newest pools to look out for this round are those which have sFRAX in them, the yield bearing staked FRAX stablecoin in them. Yield bearing stablecoins addd a layer of capital efficiency for LPs where they are risk off in a dollars denominated sense, but accrue yield on their position. The two pools which will be incentivized this upcoming round are the sFRAX/4POOL and sFRAX/wstETH, offering more organic yield for users than a typical stablecoin pool or stablecoin/WETH pairing. We look forward to the adoption of Frax into our ecosystems, and expect these pools to be popular in the near future.

Summary of changes to the original plan: As stated in prior reports, biweekly distributions are 205714.2 $ARB in order to pay out the full amount before February 15th as requested. The original proposal will be carried out as planned, with additional gauges as they approved by Balancer governance.

There has been one change which is not major, but tips the scale further in favor of productive liqudity which are useful to both Arbitrum and Balanceer. Last week, Balancer passed BIP-522 which essentially changes the boosting system of the ARB STIP program. Without changing the core logic, the BIP changes the automation to boost productive liquidity 3x more in order terms of distribution of ARB rewards. The goal being to prevent low performance pools from gaining high amounts of incentives without producing a high amount of fees.

The fixed incentives which were initially directed at the 4POOL and wstETH/4POOL will now be pointed towards the sFRAX/4POOL and sFRAX/wstETH pool in order to leverage the interest bearing nature of sFRAX for LPs. This make the adoption of Frax into the ecosystem much more streamlined, while earning more passive yield for LPs. With these changes in place, we intend to push the desirable outcomes of the Arbitrum Foundation, namely productive TVL, volume, and fees upwards by reaffirming that ARB will be sent to useful pools.