[BIP-36] Base Pool Gauges

Governance Proposals
1

Summary

The proposal aims to agree on creating several new Balancer LP gauges built around our new baoUSD/LUSD and baoETH/ETH base pools.

baoETH/ETH
baoUSD/LUSD
BAO/baoUSD-LUSD
BAO/baoETH-ETH
bETH/baoETH-ETH

In addition to the new gauges, the BAO/ETH univ2 gauge will be killed as there will be 2 new BAO liquidity gauges for USD and ETH liquidity.

Background

A base pool is tradeable liquidity made up of a number of assets. These assets can be traded within the base pool or grouped with another asset to form a meta pool, allowing trade between all assets in the base pool and the additional token. Frax has used this concept to help grow adoption for their stablecoin by pairing FRAX and USDC for their base pool because projects were able to combine liquidity with an unestablished stablecoin without many use cases and USDC - liquidity that had clear value to them. In addition, multiple liquidity pools using the same liquidity to pair with deepens the base pool liquidity making larger transactions easier to facilitate. Bao has the opportunity to create “base pools” on balancer for our synthetics and use them in a similar way.

Goals

Base pools will help drive adoption for baoUSD and baoETH by offering deeper and more useful liquidity for projects to pair their tokens with.

2

đź‘Ť hope to see BAO/baoETH-ETH on aura soon

1 Like
3

The pool weight should match the existing bao/eth pool with 50/50 weighting to maintain the same ratio that was already entered into by those providing liquidity to the existing pool before these changes were proposed.

4

The ratio will be 50% Bao / 50% BaoETH-ETH.
BaoETH-ETH will be the base pair that we will pair Bao with, in some way it will be similar to BaoUSD-3CRV which is also 50% / 50%.