Balancer STIP Updates #7

Balancer Bi-Weekly Update 23-2-2024


Recap of the Previous Two Weeks

ARB Received Last Disbursement: 0 (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 15:33 UTC on Friday February 9th. 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
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

ARB left over: 164,570.7

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 is the second to last of ARB incentives and third since Balancer has scaled back incentives. With the market sentiment trending positive overall, Balancer’ Arbitrum performance has trended upwards with it. With overall stats improving even with the decreased incentives we will continue to ride out the STIP as we previously designated through the end of March.

Please be aware the via BIP-547 migrations for 3 gauges will occur meaning incentives will be redirected to them over time in particular for pools which previously included Rocketpools’ rETH token.

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. Arbitrum’s incentives have been and continue to flow to pool’s on Balancer in the most efficient way possible. The top BAL receivers are the top earners in majority of cases, and fee revenue amiplifies the allocation of BAL and ARB that value add pools receive in the Balancer ecosystem. The core pool flywheel is carrying on it’s intended nature and will continue to do so even after the STIP.

In the previous two reports the average daily TVL has been 119M steadily and current 141M is on Balancer, nearly back to the previous ATH during prior epochs. The value in ETH has remained generally stagnant with primarily new partners and integrations bringing in new TVL. This does reinforce the ongoing narrative of Balancer acting as base layer for yield optimizing protocols on Arbitrum. This happens at both the pool and vault levels built on top of our Dex. Even with a 60% reduction in incentives TVL in USD terms is near all time high due to market conditions combined with the stickiness Balancer has fostered.

To remain consistent here are the statistics of Balancer’s top performing pools in comparison to the previous epoch. RDNT/WETH has hit an all time high from the entirety of the STIP. Last weeks 68MM has been drawfed by the current 82MM TVL. Radiant continues to prove the 80/20 modelh has fortifying implications similar to how it has benefitted Balancer’s veBAL. The last round had average daily volume of 0.25MM per day and has since recovered from this dip to 0.7MM most recently 2.3M in volume yesterday. Looking at the same liquid staking derivative pools cbETH/rETH/wstETH, WETH/rETH, have both stay roughly stagnant in TVL terms, seem slight downticks in total ETH. wstETH/WETH and ankrETH/wstETH have both hit all time highs in USD terms but relatively constant in ETH terms. sfrxETH/wstETH/rETH jumped quickly up to 5.65MM in just four weeks and is now sitting at 5.48MM with its highest ETH holdings to date.

ETH LST TVL was 50MM in USD terms last round, not 60MM as mentioned, and overall has stayed the same into this epoch. (stable pools plus weighted portions. Volume for these pools has been consistnelty between 35-38MM per epoch for the last rounds and this round has been 53.7MM in volume led primarily by the wstETH/wETH pool with 35.6MM volume on it’s own. 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 howver the Balancer Maxis continue to incentivize it using their vlAura holdings. The 4POOL pool has increased from 6.28MM to 3.6 MM TVL and still sees significant volume, consistent with the value of over 4MM per day from the previous epoch.

The sFRAX/4POOL pool has dropped from 6.1MM to 3.3MM TVL likely due to market conditions defi users are deploying stable capital back into markets making the barrier for entry on stable coin yield higher than it was previously. The sFRAX/4POOL remains a competitive place for LPs to confidentatly supply liquidity and receive modest incentives. Regardless, the volume in the 4POOL has not seen a significant drop so intended efficieny has not been sacrificed substantially.

Stats from Dune Dashboard:

Openblock dashboard will be provided when some corresponding issues are remedied.

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: $141,082,363

Average daily transactions: 519

Average daily volumes: $9,274,698

Number of unique user addresses: 3104

Transaction fees: Average daily: $8,765

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 12570.5977
0x2eB5661002b68EBE887d29d415c3A3b52536912C wstETH/rETH/cbETH 9333.47076
0xcf9f895296F5e1D66a7D4dcf1d92e1B435E9f999 RDNT-WETH 8228.53
0x260cbb867359a1084eC97de4157d06ca74e89415 wstETH-WETH-BPT 7368.441256
0xcF853F14EF6111435Cb39c0C43C66366cc6300F1 50GOLD-25USDC-25WSTETH 6582.824
0xd6B875d62c2661eaB66472F36c672e4B512f1135 rETH-WETH-BPT 5818.068931
0x40F6bE0b26B229C4C3b2C3344e91f8eEe22a62fF plsRDNT-Stable 5797.607885
0xfC745035F31BCbaEb2D1a89aA9171495c671F6cE ankrETH/wstETH-BPT 4886.755761
0x34BDBEcd3B911a8DCB17aC68B961a8D16db52673 wstETH/rETH/sfrxETH 4576.99752
0xeF767E740D83d410794519c2F93Db32e44359a5C 50MAGIC-50USDC 2951.763137
0xd956246EA5b06DEa930F0A7feC1FFf000436e3f2 DOLA/USDC BPT 2724.111641
0xa14453084318277b11d38FbE05D857A4f647442B 4POOL-BPT 1948.170548
0x159be31493C26F8F924b3A2a7F428C2f41247e83 GOLD-BAL-AURA-wstETH 1645.706
0x82d2c7B67Eaa5028c89BE86CeA8e1DF5bd2119A1 55auraBal-45wsteth 1399.740393
0x2162abD00312a0496B4b72b20A6790Cc07268A25 Savvy TriCrypto Pool 1395.155674
0xD7a5122a4e88EC9fBE94301A0Bff6114ddFe5d4B STAR/USDC-BPT 1357.354731
0x089a2E069700B0f2B16f69A6e02b01818ce22e7d D2D-rETH 1281.762855
0xae30333C4CFFeF017909460384CDD7B073281280 80LUMIN-20rETH 422.5339846
0x8ba2D53F34159C5C5e7add60B56C7dE3BBc1DA68 rETH/wETH BPT 420.2045153
0xc3522B0A58d9f12f33E542FC3c3C051b4AF01c83 DUSD-4POOL-BPT 322.1362069
0x011417BBED6FC9cefF36C032D431b0eFcBA7f8B3 50tBTC-50WETH 282.11444
0x574c2146091Cced305A7ABa82d097DE36b736fac 50DFX-50WETH 280.5642325
0x2cFBD7aCC62709396b3C8c7698808384720A0BbF 20WETH-80PAL 271.9666997
0xa655ee74D422a77ce828060CC7104400a4168619 ECLP-sFRAX-FRAX 211.4612207
0xb438c6cc53315FfA3fcD1bc8b27d6c3155b0B56A 2BTC 207.2599119

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: Balancer’s data based core pool process optimizes the incentives throughout the ecosystem and has been continuosuly improved for the Arbitrum STIP. Amplifying high revenue generating pool’s share of the ARB Balancer was generously given has been streamlined to create an upward spiraling liquidity trend.

The program will eventually end, concluding in March and Balancer will maintain a large amount of the liquidity it has built up from the STIP. Yield bearing tokens will continue to be incentivized by their own revenue generation and the layers built on top of Balancer will leverage various underlying yield sources to make LPing on the platform as competitive as possible in the Arbitrum ecosystem.

The tldr from the rETH migration boils down to a minor issue in the rate providing contract used for rETH to be pegged in stable pools was remedied in a new deployment. This new deployments requires all rETH pools to utilize a new pool hence the migration. Core pool incentives will be directed from the old pools to the new ones to incentivize users to move into the non-problematic pools. This is done by updating the Core Pools Rerouting Configuration:

The currently empty core_pools_routing.json 1 will be changed to read as follows to reroute core pool incentives from the old rocket pools to the new one.

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.