Launch ArbiAura Fed

DOLA Feds
1

Proposal to Launch Arbitrum Aura Fed

Summary

This proposal aims to launch the ArbiAura Fed, an AMM DOLA Fed that will be connected to the new DOLA/USDC Balancer pool on Arbirum, with the LP token staked on Aura. This liquidity will earn AURA, BAL and ARB rewards.

Background

The Fed Chair currently operates AMM Fed’s on Convex and Aura on Ethereum, and Velodrome on Optimism. These Feds can expand (and then contract) DOLAs directly into AMM liquidity pools, allowing for quick response to shifts in DOLA demand. Please read our docs for more information about AMM Feds.

Objective

This proposal seeks to launch an AMM Fed on Arbitrum Balancer. While DOLA has been on Balancer for the majority of 2023, it has struggled so far to maintain deep liquidity on a DEX. With the launch of Aura on Arbitrum, the opportunity arose to launch a cross-chain fed, just like Velo Fed, farming on this new deployment. This will allow the DAO to build very deep, sticky DOLA liquidity on Arbitrum, which will be important in the instance of a future deployment of the FiRM protocol to Arbitrum L2. In addition to this, the expectation is that with ARB rewards also being farmed, the vote incentivization efficiency will be high, allowing for rewards to be recycled to susbsidize future liquidity costs.

Contracts:

ArbiGovMessengerL1: ArbiGovMessengerL1 | Address 0x5128559ccE352cD31f691CCD11310de34BDd89EA | Etherscan
ArbiFed: ArbiFed | Address 0x0b5ec95257afd9534c953428ac833d19579843cb | Etherscan
Arbitrum AuraFarmer: AuraFarmer | Address 0x1992af61fbf8ee38741bcc57d636caa22a1a7702 | Arbiscan
AuraFarmerMessenger: ArbiAuraFarmerMessenger | Address 0x7275fd8a1b5f4874b10066236309d8901a848228 | Etherscan

Risk Assessment

RWG assessment for the ArbiAura Fed can be found here

On-Chain Actions

  • Set AuraFarmerMessenger as allowed on ArbiGovMessengerL1
  • Set Arbi Fed as DOLA minter
  • Set AuraFarmer address in ArbiFed
  • changeMaxLossSettableByGuardianBps to 1000 (10%) on AuraFarmerMessenger
  • Set refund address of ArbiGovMessengerL1 to Arbitrum TWG
4 Likes
2

Seems like a no-brainer. Good move.

1 Like
3

hey @cryptoharry, this looks good! Creating an AMM Fed on Arbitrum’s Balancer is a smart move. To make it even stronger:

  1. Include risk management strategies.
  2. A quick market analysis would be helpful.

Great job on explaining the contract details! Keep refining, and it’ll be solid.

2 Likes
4

Risk Assessment for ArbiAura Fed can be found here:

3 Likes