Summary:
This proposal aims to add BAL as new collateral on Mimo on Polygon.
Rationale :
Balancer is a decentralized exchange that uses a constant function market maker formula to allow liquidity pools with multiple tokens, custom allocations and fees. Smart pools in Balancer can be used for programmable liquidity. Balancer adopts powerful features to slash gas costs, super-charge capital efficiency, unlock arbitrage with zero-token starting capital, and open the door to custom AMMs. BAL has recently changed its tokenomic in a veMODEL like Curve.
You can learn more about their Liquidity pools mechanism in their documentation / whitepaper and this article about the launch of the veMODEL.
Once the vote is accepted on Snapshot, we will determine the associated liquidation ratio, minimal collateral ratio, debt ceiling and liquidation bonus in a second MIR discussion.
Project Presentation:
Protocol name : Balancer
Token requested : BAL
Token contract address : Balancer (BAL) Token Tracker | PolygonScan
Audit(s) links : Audits - Balancer
Chain requested : Polygon
Relation with the project : None.
Website: https://balancer.fi/
Twitter : https://twitter.com/BalancerLabs & https://twitter.com/balancer
Discord : http://discord.balancer.fi/
Token metrics & Risk assessment:
- Smart Contract risk: B
The code has 3 audits from Certora, OpenZeppelin and Trail of Bits. Balancer has generated billions of transactions with more than $47B of cumulative volume through a $3,4B total value locked and $72,3M total fees earned. BAL has generated more than 1,1M transactions on Polygon.
- Counterparty risk: B
The Balancer is permissionless and the ecosystem is funded by fees of the Balancer Exchange generated by the $70M+ of daily volume across all chains where Balancer is deployed. There is no mint function in the Token smart contract, so, the team can’t mint token and the maximum supply can’t be changed. There are currently 15k holders on Polygon.
- Market Risk: C
The token is available on top exchanges with nearly $274M market cap with a daily volume of 400k$ on Polygon although a large share of BAL’s supply is locked. The liquidity available on Polygon is nearly $8M.
- Chain Risk : A
Polygon had 0 outages over the last 6 months. (Polygon PoS Chain Block Count and Rewards Chart | PolygonScan)
- Liquidity Risk of PAR on Polygon: A-
The PAR-USDC UniV3 pool has 632K$ in concentrated liquidity, composed of 20% PAR and 80% USDC at the time of writing. The 2eur Curve pool has 910k$ in liquidity, composed of 52,76% PAR and 47,24% jEUR at the time of writing. The 4eur Curve pool has 762k$ in liquidity, composed of 19,28% PAR, 18,09% jEUR, 39,89% EURS and 22,74% EURT at the time of writing. The MIMO-PAR Balancer pool has 172k$ in liquidity, composed of 80% MIMO and 20% PAR.
This provides the following price impact on the following trade sizes:
1000 USDC → PAR: 0.06%
10000 USDC → PAR: 0.13%
25000 USDC → PAR: 0.25%
50000 USDC → PAR: 0.44%
- Overall Risk : B
The Overall Risk is the average of the points mentioned above.
- Community size :
Twitter: 129,5k followers on Balancers Labs & 4499 followers on Balancer DAO
Discord: 57k members
Technical implementation:
- Add BAL in the ConfigProvider Contract with all parameters decided by the Mimo governance.
- Set the chainlink oracle related to the BAL: BAL/USD into PriceFeed Contract
Voting options:
- Add BAL as new collateral on Mimo on Polygon
- Against adding BAL as new collateral on Mimo on Polygon
- Abstain
Authors: @starny & @JeanBrasse from Mimo Labs
Community poll:
- Add BAL as new collateral on Mimo on Polygon
- Against adding BAL as new collateral on Mimo on Polygon
- Abstain
0 voters