Balancer STIP Program Updates #5


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: 82,285.3

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 82,285.3 $ARB sent for payment by this multisig transaction executed at 15:57 UTC on Friday January 12th. These payments were be streamed to stakers in the gauge by the injector and the gauge system for 2 weeks, ending today on January 26th.

recipientGaugeAddr symbol distribution
0x050fBe33699E56B577c3D6f090eCE9870A0966bd sFRAX/4POOL 11490.14692
0x2eB5661002b68EBE887d29d415c3A3b52536912C wstETH/rETH/cbETH 8946.474951
0x40F6bE0b26B229C4C3b2C3344e91f8eEe22a62fF plsRDNT-Stable 8228.53
0xcf9f895296F5e1D66a7D4dcf1d92e1B435E9f999 RDNT-WETH 8228.53
0x260cbb867359a1084eC97de4157d06ca74e89415 wstETH-WETH-BPT 6804.433923
0xcF853F14EF6111435Cb39c0C43C66366cc6300F1 50GOLD-25USDC-25WSTETH 6582.824
0xeF767E740D83d410794519c2F93Db32e44359a5C 50MAGIC-50USDC 6546.610215
0xd6B875d62c2661eaB66472F36c672e4B512f1135 rETH-WETH-BPT 5767.291488
0xfC745035F31BCbaEb2D1a89aA9171495c671F6cE ankrETH/wstETH-BPT 4884.125024
0xd956246EA5b06DEa930F0A7feC1FFf000436e3f2 DOLA/USDC BPT 3239.493465
0x34BDBEcd3B911a8DCB17aC68B961a8D16db52673 wstETH/rETH/sfrxETH 2977.621604
0x089a2E069700B0f2B16f69A6e02b01818ce22e7d D2D-rETH 2393.794263
0x159be31493C26F8F924b3A2a7F428C2f41247e83 GOLD-BAL-AURA-wstETH 1645.706
0x82d2c7B67Eaa5028c89BE86CeA8e1DF5bd2119A1 55auraBal-45wsteth 1245.426364
0x972539E9d340a915775C004715f286a166F067Fd 80OVN/20wUSD+ 900.7845013
0x011417BBED6FC9cefF36C032D431b0eFcBA7f8B3 50tBTC-50WETH 766.3257337
0xb438c6cc53315FfA3fcD1bc8b27d6c3155b0B56A 2BTC 500.8380213
0x574c2146091Cced305A7ABa82d097DE36b736fac 50DFX-50WETH 395.8120468
0x2162abD00312a0496B4b72b20A6790Cc07268A25 Savvy TriCrypto Pool 266.6670879
0xc3522B0A58d9f12f33E542FC3c3C051b4AF01c83 DUSD-4POOL-BPT 239.1645449
0x96056DF5a61B758005a219a052D72085C45df92c 80PAL-20OHM 161.1945332
0xa14453084318277b11d38FbE05D857A4f647442B 4POOL-BPT 73.50531601

Contract address label Form completed for all addresses: Yes

ARB left over: 157715.3

Plan for leftover ARB: The leftover ARB will be distributed out until through the month of March as requested by the Arbitrum Foundation. The result for Balancer is 82285.3 ARB being distributed per round until March 8. This final injection would then last until March 22 for ARB streamign to close out Balancer’s STIP cycle.

This was the first distribution round where Balancer has scaled back incentives by over 50%. This reduction is a test to validate that the liquidity built up on Balancer is indeed sticky and not a short term benefit to the Arbitrum ecosystem. Thep prior rounds had 205714.8 ARB per epoch, in comparison to the 82,285.3 distributed over the last two weeks. Based on the downward market conditions in the last several days the mark has been humbling, but refreshing for the protocol to see the best pools maintaining their incentive optimized footholds thanks to Balancer’s core pool mechanics, emphasized by the STIP.

Summary of incentives: Incentives were injected to pool gauge’s 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. Balancer’s core pool mechanics cycles high volume and high yield bearing liquidity fees back into the incentives markets giving strong performers the ability to self sustain on Balancer. Combined with the STIP incentive program proposed by Balancer DAO and funded by the Arbitrum Foundation, the ARB incentives have been consistently directed towards these pools in a spiral up trajectory to maximize their efficiency.

On Janaury 11th, the TVL of Balancer was 135M, volume, LST TVL, and fees were at all time highs. Currently we are reporting our first round with a reduction in core metrics and ultimatley the efficiency has not decreased for Balancer. The average daily TVL has still been strong at 137MM, however at the time of writing has dropped to 119MM. The integrations and layers on top of Balancer are continuing to expand and as mentioned in the previous report related to Aura, Plutus, Beefy, and Notional Finance. The initial heavy push of ARB incentives has increased Balancer’s already strong presence on Arbitrum for certain, but true value is in seeing a high retention of metrics with a 60% reduction in ARB dispersed per round.

Balancer’s largest pools metrics continue to carry the protocol forward, and several new comers have firmed up their position in the ecosystem. To put in perspective the reductions in TVL in some of these pools, the market is down roughly 15% in USD terms. RDNT/WETH has seen a pullback from its recent peak at 75MM down to 64MM. The last two rounds have average daily volumes 1.19MM and 1.97MM daily volume, currently the pool is still performing well at 1.18MM. Looking at the same liquid staking derivative pools cbETH/rETH/wstETH, WETH/rETH, wstETH/WETH and ankrETH/wstETH have for the first time in the STIP’s history have not all reached all time highs. However with the market turning down The cbETH/rETH/wstETH has jumped massively in TVL while the rest have stayed relatively flat in TVL or dropped with the market dynamics. Overall the total ETH in Balancer pools has continuously increased. sfrxETH/wstETH/rETH has been our new and fastest grower, but going forward will be joining the group as a standard LST pool to follow the metrcis of. In the previous epochs the pool has hit 4.16MM TVL, and despite the drop in ETH price and reduction in incentives has still pushed to 5.48MM TVL.

ETH LST TVL has been climbing dramatically on Balancer and Arbitrum throughout the STIP’s duration from 47.5MM to 59MM last round and now Balancer holds just under 52MM TVL for this same set of assets at the time of writing (stable pools plus weighted portions). This is a net increase in ETH from the previous round, but reflects poorly due to the difference in USD price between snapshots. Volume has across these pools was at an all time high of 47.5MM for the period, but has decayed to the round prior’s level matching it at 38MM. Given the circumstances this exemplifies the strength of Balancer’s infrastructure and strategy resulting in beneficial aligned outcomes for Arbitrum.

Last round the ARB incentives were cut from the 4POOL and the 4POOL/wstETH pair. The 4POOL pool has maintained 5.47MM TVL without any direct incentivization and still sees significant volume, averaging 5.16MM per day this round. Liquidity will remain sticky for this pool because of it being nested in the sFRAX/4POOL, where incentives migrated to offers LPs the yield bearing exposure of sFRAX while also acting as a way to incentivize diverse stablecoin routing. As described in the previous report, this is is more efficiency for Balancer liquidity providers and the Arbitrum Foundation’s STIP funding.

To close the loop on the pools to watch mentioned in the report 4, they sFRAX/4POOL pool has maintained 5MM TVL and while it is relatively low volume compared to the pools above, it is the most efficient way for the yield of sFRAX to subsisize stable coin support on Balancer and Arbitrum making the cost of sticky liqudity lower for both parties. Liqudity providers also are rewarded with the additional organic yield, making it a win for all. Beefy continues to leverage all integrations of Aura, sFRAX, and the STIP to make liquidity providers increase their positions over time via their autocompounding vaults and this plays a strong role in all LST pools also outperforming the market this round.

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: $137,263,052

Average daily transactions: 660

Average daily volumes: $11,319,140

Number of unique user addresses: 4037

Transaction fees: Average daily: $10,913

Plan For the Next Two Weeks

Amount of ARB to be distributed: 82285.3

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
0x050fBe33699E56B577c3D6f090eCE9870A0966bd sFRAX/4POOL 13901.0357
0x260cbb867359a1084eC97de4157d06ca74e89415 wstETH-WETH-BPT 8320.91582
0xcf9f895296F5e1D66a7D4dcf1d92e1B435E9f999 RDNT-WETH 8228.53
0xeF767E740D83d410794519c2F93Db32e44359a5C 50MAGIC-50USDC 6879.841573
0xd6B875d62c2661eaB66472F36c672e4B512f1135 rETH-WETH-BPT 6586.729985
0xcF853F14EF6111435Cb39c0C43C66366cc6300F1 50GOLD-25USDC-25WSTETH 6582.824
0xfC745035F31BCbaEb2D1a89aA9171495c671F6cE ankrETH/wstETH-BPT 6356.690183
0x2eB5661002b68EBE887d29d415c3A3b52536912C wstETH/rETH/cbETH 5184.528579
0x34BDBEcd3B911a8DCB17aC68B961a8D16db52673 wstETH/rETH/sfrxETH 3736.903028
0xa14453084318277b11d38FbE05D857A4f647442B 4POOL-BPT 2771.599555
0xd956246EA5b06DEa930F0A7feC1FFf000436e3f2 DOLA/USDC BPT 2464.66195
0x40F6bE0b26B229C4C3b2C3344e91f8eEe22a62fF plsRDNT-Stable 2046.434781
0x089a2E069700B0f2B16f69A6e02b01818ce22e7d D2D-rETH 1700.028602
0x159be31493C26F8F924b3A2a7F428C2f41247e83 GOLD-BAL-AURA-wstETH 1645.706
0x82d2c7B67Eaa5028c89BE86CeA8e1DF5bd2119A1 55auraBal-45wsteth 1399.443321
0x972539E9d340a915775C004715f286a166F067Fd 80OVN/20wUSD+ 1025.898234
0xD7a5122a4e88EC9fBE94301A0Bff6114ddFe5d4B STAR/USDC-BPT 924.102047
0xae30333C4CFFeF017909460384CDD7B073281280 80LUMIN-20rETH 451.5109931
0x011417BBED6FC9cefF36C032D431b0eFcBA7f8B3 50tBTC-50WETH 417.2050628
0xb438c6cc53315FfA3fcD1bc8b27d6c3155b0B56A 2BTC 385.2961515
0xc3522B0A58d9f12f33E542FC3c3C051b4AF01c83 DUSD-4POOL-BPT 350.3399909
0x574c2146091Cced305A7ABa82d097DE36b736fac 50DFX-50WETH 336.3807591
0x2cFBD7aCC62709396b3C8c7698808384720A0BbF 20WETH-80PAL 307.0325575
0x2162abD00312a0496B4b72b20A6790Cc07268A25 Savvy TriCrypto Pool 281.6611261

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 original plan carries on in a different form as it has through the last four rounds. With the changes in total allocations of ARB there has been no wavering in the strategy. Balancer’s core pool mentality stays the same, and having the same core metrics to drive fees for both the Arbitrum ecosystem we will continue to push for more capital efficient pools to compete on our platform. This competition drives the increases in TVL, volume, and ultimatley fees for all involved.

We have been working closely with the Plutus team to thread the needle of layering a liquid wrapper on top of the Radiant dlp juggernaught. plsRDNT as a top yield earner will receive more emissions over time, however there is currently community discussion on their end to change the strategy to reach a sustainable market condition of the wrappers peg to the liquid pairing. Stay tuned to their community discussions for more information on this as the offering progresses.

The sFRAX/4POOL has support from several communtities at this time. Balancer, Arbitrum, Frax, Aura, and Beefy all have skin in the game for this pool to continue to grow. While it is a highlight this round, it likely will continue to be so throughout the remainder of the STIP program, and long after.

Summary of changes to the original plan: Bi-weekly distributions will be 82285.3 per round due to the extension plan in place from the Arbitrum Foundation. This will make the program last through the first half of March. The optimization BIP details to strengthen top performing pool’s can be seen here BIP-522.

The fixed incentives which were initially directed at the 4POOL have been and will continue to be pointed towards the sFRAX/4POOL