The Balancer Report - May 20, 2024

Unveiling Ecosystem Updates, Key Metrics, Governance Proposals, and More!

Embark on a journey through the latest developments in the Balancer ecosystem as we delve into essential data such as Total Value Locked (TVL), Swap Fees, and Volume. Discover the pulse of governance with insights into proposals shaping the future. Join us as we unpack the week’s highlights and insights!

Now let’s explore the latest ecosystem news:

Collaborating for Avalanche’s Decentralization and Expansion

Liquid Staked Tokens (LSTs) like ggAVAX are transformative assets for the Avalanche network. When users deposit AVAX into GoGoPool, they receive ggAVAX, a liquid representation of their deposit. This process plays a crucial role in the expansion and continued decentralization of Avalanche and its Subnets.

Let’s explore how GoGoPool, DeltaPrime, and Balancer work together to contribute to the growth and decentralization of the Avalanche ecosystem.

HyperlockFi Thrives in Blast_L2 with Record TVL

Aura’s first franchise, HyperlockFi, is a key player in the Blast_L2 ecosystem, ranking third on the chain with $267 million of TVL, an all-time high when measured in ETH. Built on top of Blast’s leading DEX, ThrusterFi, Hyperlock creates a Blast-native flywheel that also benefits vlAURA holders. Blast’s recent Gold distribution heavily allocated 2,596,778 Gold to Thruster and 577,061 Gold to Hyperlock. Users staking a Thruster LP into Hyperlock earn Gold from both protocols, along with HYPER, THRUST, and BLAST points. Pools like Frax Finance’s USDB-sFRAX and Redacted Cartel’s pxETH-WETH offer high Gold rewards. Renzo Protocol’s ezETH-WETH pool provides a mix of Gold, EIGEN, and boosted ezPoints. There may be another Gold Rush event soon, so stay tuned at Hyperlock.Finance.

How GyroStable Leveraged Balancer for Rapid Success

New AMMs need liquidity to attract volume and integration with aggregators, but they also need volume and aggregator support to attract liquidity, creating a challenging cycle. Custom AMM designs are experimental and carry a risk premium. All AMMs built on Balancer integrate into the veBAL/BAL incentive mechanism, allowing for initial testing without needing a native token. With liquidity aggregator integration, incentive structures, and partnerships available from day one, Balancer solves the cold start AMM problem.

This is exemplified by GyroStable, which developed a custom elliptical concentrated liquidity invariant to enhance capital efficiency. Instead of building a custom AMM from scratch, the Gyroscope team used Balancer for its instant aggregator integrations, liquidity rewards mechanics, connection to the Balancer network, and ability to demonstrate PMF. This resulted in E-CLPs rapidly showcasing their unique capabilities, achieving over $1,100,000,000 in volume with collaborations from notable protocols like Aave, Lido Finance, and Rocket Pool.

Balancer Leads the Way in Liquid Staked Tokens with Key Partnerships

The recent collaboration with Wormhole, Arbitrum, Jito, and Aura Finance further establishes Balancer as the leading DEX for hosting Liquid Staked Tokens (LSTs), marking significant achievements such as the first $SOL LST on an $ETH network, over $19.8 billion in LST swap volume, and over $438 million in LST TVL.

Balancer Pools Revolutionize LST Swaps with Chainlink Integration

Balancer pools are uniquely designed to handle Liquid Staked Tokens (LSTs) by integrating Chainlink data feeds with stableswap logic. This approach avoids the typical suboptimal 1:1 swap pricing used by other AMMs, providing accurate rates programmatically.

Restake $ETH and Win Big: Mega Million Marathon’s $1M Prize Pool

Mega Million Marathon invites users to restake $ETHx, $stETH, or $ETH before May 21 to unlock their full reward potential and claim a share of a $1,000,000 prize pool. Rewards are distributed across five categories: USDC, ARB, OP, SD, and EigenLayer Points.

GYD Launches on Polygon zkEVM with Lower Gas Fees

GYD begins its rollout on Layer 2 solutions, starting with Polygon zkEVM. GYD is already the most liquid stablecoin for its size, demonstrating resilience and liquidity. Now, it also benefits from lower gas fees.

As is always the case, HiddenHand incentives can be explored here, the current round ends on May 23, 2024. And to date it has the following details:

Total Votes: 4,963,601
Total Rewards: USD 64,511.60
Emission $/Vote: USD 0.0711
Incentive $/Vote: USD 0.0130

Balancer: TVL and Stats — Defilytica

Balancer’s Total TVL across all networks is sitting at $959,44m.

The Total Mainnet TVL is $752,73m with a dominance of 78,46%.

Speaking of protocol volume metrics, in this last week we were able to see a cumulative volume of $382,31m.

As for protocol fee metrics, we can verify cumulative fees of $214,22k.

This section will list the top three expected pools to receive most of the next period’s emissions. Voting is open for four more days, and the next period is scheduled to start on Thursday at 00:00 am UTC.

Mainnet — WETH / rETH — currently at 12.6%
Mainnet — WETH / ezETH — currently at 8.3%.
Mainnet — USDT / USDC / GHO — currently at 5.79%.

This week there are 2 active proposals on Snapshot including the following:

[BIP-607] Update FTM Multisig to Claim vested BEETS

Originally, when BeethovenX was approved as a friendly fork, 10 million BEETS were set aside for the DAO to unlock via a vesting contract. This proposal aims to update the Fantom wallet managing this vesting contract by assigning the maxis as signers. They will then claim the fully vested BEETS and transfer them to the DAO Multisig on Optimism for streamlined bridging. The DAO Multisig on Fantom will become inactive unless absolutely necessary, due to the low activity on the Fantom network and Balancer’s limited influence there. No current plans exist for the BEETS tokens, but future proposals may address their use.

[BIP-608] Deploy Balancer on Fraxtal

This proposal aims to deploy Balancer on the Fraxtal Network, leveraging Fraxtal’s modular rollup architecture, EVM equivalence, and innovative Flox program. By doing so, Balancer can access Fraxtal’s growing ecosystem, incentivize liquidity provision, and integrate with Fraxtal’s blockspace incentives, driving ecosystem growth and adoption. The deployment will establish Balancer as core infrastructure on Fraxtal, enhancing liquidity provision and facilitating seamless asset swaps. The Balancer community is asked to authorize this deployment, integrate with the Flox program, and collaborate on a deployment timeline aligned with Fraxtal’s objectives.

Source : Medium / May 20, 2024