tetuBAL
tetuBAL is a liquid market product for the Balancer platform.
Features of tetuBAL
Permanent Locking
Governance rights and increased value for veTETU
Balancer revenue earnings, swap fees and liquidity mining rewards
Max boost for locking veBAL for the maximum period
Exit Liquidity
Low costs
tetuBAL contract https://polygonscan.com/address/0x7fc9e0aa043787bfad28e29632ada302c790ce33
veBAL
veBAL is Balancer's governance product. Through veBAL, users can lock their 80/20 BAL-WETH liquidity pool tokens to boost the rewards of deposited assets, obtain voting rights, and receive a portion of Balancer's revenue. You can learn more about veBAL
tetuBAL
tetuBAL is the liquid market product offered by Tetu for the Balancer platform. This strategy marks the beginning of Tetu's innovative interaction between multiple blockchains; utilizing the Ethereum network from the convenience of the Polygon network to provide minimal fees and a seamless experience for users.
Through tetuBAL, users will be able to obtain most of the benefits provided by locking veBAL for the maximum period, such as increased revenue share from Balancer, and a higher multiplier on gauge weight voting for BAL emissions, all while having the option to enter or exit the position as you please on the polygon network.
To enter the tetuBAL vault users must deposit both BAL and WETH on Balancer Pool on Polygon to get the B-80BAL-20WETH BPT token, and then deposit the BPT token into the Tetu vault for tetuBAL.
Locking
tetuBAL locks 80/20 BAL-WETH LP in veBAL for a maximum period of 1 year. At the end of the locking period, the assets are locked for a maximum period of 1 year again so that all assets deposited in tetuBAL are practically locked forever. So, despite the exit liquidity option provided to users, tetuBAL provides permanent liquidity deposited in the Balancer protocol.
Governance and veTETU synergy
Voting rights on Balancer DAO proposals provided by veBAL are still preserved by Tetu, so that veTETU holders can vote and decide on Balancer proposals. In this way, tetuBAL users waive the right to vote on governance proposals in exchange for the benefits provided by the product, as a result veTETU token obtains an even greater value provided by the backing of veBAL assets permanently deposited in the Tetu ecosystem. veTETU holders can vote to direct veBAL votes from Tetu assets through reflect governance voting in Tetu snapshot.
the voting power is provided as follows:
BPT no voting power
1 tetuBAL 100% voting power
1 veTETU power by the formula (tetuBAL balance in BPT) / (veTETU total supply) veTETU power has a cut of 20% for tetuBAL buybacks
Relevant Events:
TIP-016
Following the implementation of TIP-016, 20% of the veTETU voting power in the tetuBALPower contract was reduced. This amount of veTETU power will now be allocated for collecting bribes, which will subsequently be utilized for the buyback of tetuBAL tokens. The tetuBAL bought-back tokens are held by the address 0x6672a074b98a7585a8549356f97db029416849e
TIP-018
After TIP-018 was put into effect, changes to the tetuBAL bribes distribution system were implemented. This was necessitated by the significant complexity and high gas consumption of distributing bribes from all markets individually.
The process is now simplified as follows:
All bribes from the markets will now be distributed exclusively to xtetuBAL holders.
The performance fee for xtetuBAL has been reduced from 15% to 5%.
veTETU is now counted as power deposited to xtetuBAL. As such, veTETU holders will receive bribes without needing to vote.
These adjustments aim to make the distribution process more efficient and less resource-intensive.
Gauge reflection proposals
Every two weeks we are creating a reflection proposal. The proposal reflects Balancer's liquidity mining emissions. https://app.balancer.fi/#/ethereum/vebal
Participants in the proposal will eligible for rewards from:
Hidden Hand bribes https://hiddenhand.finance/
Warden quests https://app.warden.vote/
Tetu community https://tetu.community/tetu-bal
A block for reflect proposal will be chosen in a range of blocks between the start date of the previous proposal (not the snapshot block!) and the current block. The reflect proposal is determined by the block with the highest amount of tetuBAL in the pool, and the selection of the reflection snapshot block works according to the snapshot script.
Eligibility to voting
The methodology for selecting the block for reflection snapshot ensures a reasonable degree of randomness in determining whether a user who locks veTETU will be immediately eligible to vote or must wait for a period, which will not exceed two weeks; however, after two weeks, voting eligibility is guaranteed.
veBAL Rewards
Tetu will claim veBAL rewards weekly on Balancer and users will receive veBAL rewards in wrapped tetuBAL and TETU. All veBAL rewards comes from Balancer revenue earnings, swap fees and liquidity mining rewards.
tetuBAL liquidity
tetuBAL can be traded in the tetuBAL-BPT liquidity pool available on Polygon. In addition to exit liquidity, the pool can also be used as an option for the direct acquisition of tetuBAL. This feature can provide advantages for buying tetuBAL directly when tetuBAL is priced below the peg instead of minting tetuBAL by depositing the 80/20 BAL-WETH LP into tetuBAL. This will also provide opportunities to arbitrage as the stability of the peg fluctuates.
Balancer's governance structure
BAL token holders have the option to stake their tokens into veBAL for a chosen period of time in order to receive more voting power for the gauge weight voting, and to increase revenue and rewards they receive from Balancer. The benefits received scale with the duration of the lock, ranging from minimum boosts with a two week lock, to maximum boosts with a one year locking period.
veBAL holders have the power of directing weekly gauge emissions to specific Balancer pools. 90% of the weekly rewards are directed by veBAL gauge weight voting, with the remaining 10% being strategically allocated for partnerships by the Liquidity Mining committee.
BAL token emissions are now distributed into the ecosystem with new allocations; veBAL holders are allocated 10% of BAL rewards, proportional to the percentage staked out of the entire veBAL balance staked. 56% of BAL rewards are reserved for Ethereum mainnet pools, while Polygon pools and Arbitrum pools receive 17% and 7%, respectively. All gauge weights for Ethereum, Polygon, and Arbitrum pools are voted for by veBAL holders on Ethereum.
Users can still earn some liquidity mining incentives and swap fees from Polygon and Arbitrum, but they are unable to receive the boosted liquidity mining rewards and 75% of the protocol earned fees that veBAL holders are entitled to on Ethereum. This is where Tetu steps in, providing to all users, regardless of chain, the benefit from the boosted liquidity mining rewards and protocol earned fees.
tetuBAL Multi Sig
There is a dedicated contract on the Ethereum network, BalLocker, this contract has the unique role of voter. Only the voter can be used to vote on gauges and participate in snapshot proposals.
Gnosis Safe: 0x84169ea605619C16cc1e414AaD54C95ee1a5dA12
| Name | Address |
|---|---|
belbix - Tetu team | 0x0644141DD9C2c34802d28D334217bD2034206Bf7 |
Marc Zeller - AAVE team | 0x329c54289Ff5D6B7b7daE13592C6B1EDA1543eD4 |
Grendel - Polygon DAO | 0xE4067ED66738dBDC7b8917703C8c380d898033F8 |
Hamzah - Polygon Team | 0xc156C57231a9302D9f5C7b5eF22871cC25F40736 |
Benjamin - QiDao | 0xdb9c38cf1d0dca95ef5b5def9688562b142f96b2 |
BalLocker - https://etherscan.io/address/0x9cC56Fa7734DA21aC88F6a816aF10C5b898596Ce
BalDepositor - https://etherscan.io/address/0xbb84098e47d217f51cb014f692eada1f2280a179
BalSender - https://polygonscan.com/address/0xBb84098e47d217f51cB014f692eada1F2280a179
Resources
tetuBAL Medium article Key Opinion Leader - veTetu
xtetuBAL
xtetuBAL is a strategy developed by Tetu that automatically allocates voting power into the most effective gauges in order to maximize earnings in bribes. This strategy is based on tetuBAL and is designed to provide high yields for tetuBAL holders.
Features
Automated allocation of voting power into the most effective gauges to maximize earnings in bribes
5% of earnings in xtetuBAL is used to build tetuBAL Protocol Owned Liquidity
Profits from bribes are airdropped as USDC or xtetuBAL to participants of xtetuBAL.
veTETU is considered as power deposited into xtetuBAL. Only xtetuBAL and veTETU holders will receive distributions of all bribes from the markets.
Calculation of APR
The APR of xtetuBAL can be calculated by dividing the total amount of bribes by the TVL in the strategy. This calculation provides an estimate of the percentage return that can be expected from staking funds in xtetuBAL. The APR shown on the UI comes from the previous bribe round.
Airdrop
By default, bribes are distributed as a USDC airdrop, but you have the option to switch and receive bribes in xtetuBAL as your preferred asset or continue receiving them in USDC.
xtetuBAL and tetuBAL overview
Providing Liquidity: Users can contribute to the liquidity pool, which primarily involves a pair of 80BAL-20WETH - tetuBAL. It's essential to note that the control of tetuBAL within this liquidity pool is exercised by veTETU holders.
Holding tetuBAL Tokens: Users who hold tetuBAL tokens in their wallets are granted the right to vote on proposals shared in time-to-vote and veTETU has no control over anything outside the LP.
Depositing into xtetuBAL: In this scenario, the TETU platform manages the voting process associated with tetuBAL tokens, thus maximizing value-per-vote. For this service, TETU takes a 5% fee, while the remaining 95% is distributed among all users who have contributed to the xtetuBAL vault.
Conclusion
xtetuBAL is a powerful yield optimization strategy designed for tetuBAL holders. By automatically allocating votes to the gauges with the highest bribes, it maximizes earnings and ensures the highest possible return on investment. To invest in xtetuBAL, please visit the following link https://app.tetu.io/vault/0x915e49f7cd8b2b5763759c23d9463a74d5b5c1d5
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