Balancer STIP Updates #6

Balancer Bi-Weekly Update 9-2-2024


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 15:24 UTC on Friday January 26th. These payments were be streamed to stakers in the gauge by the injector and the gauge system for 2 weeks, ending today on February 9th.

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: 246,856

Plan for leftover ARB: The leftover ARB will be distributed out until through the month of March. The Balancer DAO is distributing 82285.3 ARB 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 injection was the second round of scaled back ARB incentives and will be the status quo until the STIP is concluded at the end of Q1. As mentioned in the previous report the resulting performance of Balancer after scaling back on incentives is an indicator of how the STIP has provided lasting value. Due to Balancer’s core pool mechanics once liquidity is present and healthy, it will receive a fair market amount of incentives in the form of BAL and AURA enticing new users to stay on the platform. This aligns the interested of Arbitrum and Balancer as well as the humble liquidity providers we are both looking to attract.

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. The incentives continue to flow towards the highest revenue earning pools in terms of total fees. This encompasses yield and swap fees generated for LPs and rewards the healthiest pools in the ecosystem. Arbitrum and Balancer both continue to benefit from the liquidity incentives maintaining the TVL it attracted in the earlier phases of the STIP. This round displays a good indication relative to the prior weeks of how Balancer will perform on Arbitrum as ARB rewards scale back and settle in for liquidity providers.

The TVL at the time of writing the previous report was 119M total, and this has stayed consistent as the average daily TVL over the last two weeks. Today the TVL on Balancer is 125M and we can thank the integrations built on top of and within Balancer for optimizing liquidity strategies in throughout the Arbitrum ecosystem for this. Balancer acting as base layer for yield optimizing protocols to tie into is how our dex brings great value to a network like Arbitrum. Regardless of the 60% reduction in incentives TVL has taken a minor step down since its peak one month ago, and this is also related to the overall market conditions pulling back. In ETH terms Balancer is still near its all time high TVL throughout the STIP. The cornerstone of our reports remains to be the long term stickiness of liquidity that our automated method for distribution fosters. Arbitrum and Balancer benefit from this because it leads to an optimized outcome for all parties.

To remain consistent here are the statistics of Balancer’s top performing pools in comparison to the previous epoch. RDNT/WETH is holding steady at 68MM up slightly from last weeks 64MM. Radiant has been a powerful partner for Balancer and our 80/20 model has played a key role in the success of their on chain liquid locking tokenomics. The last round had average daily volumes 1.18MM in daily volume, and currently RDNT has been relatively low volatility making the average daily volume 0.25MM per day. Looking at the same liquid staking derivative pools cbETH/rETH/wstETH, WETH/rETH, wstETH/WETH and ankrETH/wstETH have stayed relatively the same in TVL since the last round, not breaking the all time highs of two rounds ago, however the ankrETH pool did run up to a new ATH. cbETH/rETH/wstETH has maintained it’s large rapid increase in TVL with a steady hold of roughly 12MM. sfrxETH/wstETH/rETH jumped quickly up to 5.48MM in just four weeks and is now sitting at 5.37MM with its highest ETH holdings to date.

ETH LST TVL has been climbed consistently over the last two months on Balancer and reached just under 52MM TVL last round. This round we are happy to report 60MM 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, and reflects a slightly higher price point for ETH. Volume across these pools for the previous 2 week period was 38MM and this round did not see a major change holding at just over 35MM in volume. 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 increased from 5.47MM to 6.28MM TVL without any direct incentivization and still sees significant volume, averaging 4.28MM per day this round. The nesting of the 4POOL agaisnt sFRAX is proven to be more efficienct for Balancer liquidity providers and the Arbitrum Foundation’s STIP funding based on this outcome continuing to outperform competing dexes.

The sFRAX/4POOL pool has jumped again from 5MM to 6.1MM TVL and remains a comepetitive place for LPs to park their liquidity and indirectly facilitate the throughput the 4POOL is able to produce. This pool gives LPs yield from the sFRAX token accruing over time, and additional incentives from BAL and AURA because of the core pool cycle it wields due to sFRAX. As mentioned in previous reports Beefy has played a critical role in the upward spiral for this pool’s performance and continues to do so with FRAX at the table by injecting more rewards via their vault. To understand the full strength of these synergies user’s can participate in joining Balancer pools and depositing their pool tokens into Beefy’s vaults.

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: $119,779,092

Average daily transactions: 507

Average daily volumes: $7,789,287

Number of unique user addresses: 3410

Transaction fees: Average daily: $4,872

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 12858.12621
0x2eB5661002b68EBE887d29d415c3A3b52536912C wstETH/rETH/cbETH 9668.361188
0xcf9f895296F5e1D66a7D4dcf1d92e1B435E9f999 RDNT-WETH 8228.53
0x40F6bE0b26B229C4C3b2C3344e91f8eEe22a62fF plsRDNT-Stable 8228.53
0xcF853F14EF6111435Cb39c0C43C66366cc6300F1 50GOLD-25USDC-25WSTETH 6582.824
0x260cbb867359a1084eC97de4157d06ca74e89415 wstETH-WETH-BPT 6009.301545
0xd6B875d62c2661eaB66472F36c672e4B512f1135 rETH-WETH-BPT 5953.75825
0x34BDBEcd3B911a8DCB17aC68B961a8D16db52673 wstETH/rETH/sfrxETH 4567.091798
0xfC745035F31BCbaEb2D1a89aA9171495c671F6cE ankrETH/wstETH-BPT 4399.12219
0xeF767E740D83d410794519c2F93Db32e44359a5C 50MAGIC-50USDC 4231.085521
0xd956246EA5b06DEa930F0A7feC1FFf000436e3f2 DOLA/USDC BPT 2334.394617
0x159be31493C26F8F924b3A2a7F428C2f41247e83 GOLD-BAL-AURA-wstETH 1645.706
0xa14453084318277b11d38FbE05D857A4f647442B 4POOL-BPT 1633.443784
0x089a2E069700B0f2B16f69A6e02b01818ce22e7d D2D-rETH 1498.335308
0xD7a5122a4e88EC9fBE94301A0Bff6114ddFe5d4B STAR/USDC-BPT 1164.475047
0x82d2c7B67Eaa5028c89BE86CeA8e1DF5bd2119A1 55auraBal-45wsteth 1142.437791
0x2162abD00312a0496B4b72b20A6790Cc07268A25 Savvy TriCrypto Pool 778.5300112
0xae30333C4CFFeF017909460384CDD7B073281280 80LUMIN-20rETH 370.9237863
0xc3522B0A58d9f12f33E542FC3c3C051b4AF01c83 DUSD-4POOL-BPT 273.7613943
0x574c2146091Cced305A7ABa82d097DE36b736fac 50DFX-50WETH 254.0471536
0x2cFBD7aCC62709396b3C8c7698808384720A0BbF 20WETH-80PAL 241.4823142
0x011417BBED6FC9cefF36C032D431b0eFcBA7f8B3 50tBTC-50WETH 221.0320944

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 plan for incentives has been the same for the entirety of the STIP. Balancer uses data driven processes to optimize the incentives it wields from BAL, AURA, and in this case ARB to drive the most profitable pools in terms of yield and swap fees to become more heavily incentivized. As the draw for new liquidity providers strengthens a fly wheel on each pool is organically constructed and the strong pools maintain themselves benefitting the Arbitrum network users with more competitive pricing for swaps, and liquidity providers in high demand pairings to be properly compensated for their positions.

This will continue through the end of March and Balancer will be holding on to a large amount of the liquidity it has built up from the STIP long after it ends simply because of the healthy architecture it has beneath it’s surface. The yield bearing assets, all LSTs, plsRDNT, and sFRAX will continue to be at the forefront for Balancer and Arbitrum users will likely end up in these pools sooner or later because of their long lasting flywheel.

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.