[1IP-07] Integrate Balancer Boosted Pools in the 1inch Aggregation Protocol

  • (Yes) In favor of this proposal.
  • (No) Against this proposal.

0 voters

Simple Summary

This proposal calls for the integration of Balancer Boosted Pools into the 1inch Aggregation Protocol.

Abstract

This proposal aims to grow the kinds of liquidity sources compatible with the 1inch Aggregation Protocol by integrating Balancer Boosted Pools. To fund this development, a BAL grant from Balancer DAO and Balancer DAO will be awarded to 1inch Labs upon the successful completion of the integration. Specifically, the following

  1. 1inch Labs shall integrate the Balancer Boosted Pools into the 1inch smart contracts, the 1inch dApp, and the 1inch API.
  2. The integration shall be live on the Ethereum main-net no later than 3 weeks after this proposal passes the Phase-4 snapshot vote.
  3. If both conditions 1 and 2 are met, Balancer DAO and Balancer DAO will transfer 20k BAL or the equivalent in stablecoins (as determined by Balancer DAO) to 1inch Labs.

Motivation

Balancer Boosted Pools are a new pool type that have been gaining traction from many DeFi protocols. These pools were previously discussed with the 1inch community on the 1inch Governance Forum as well as the 1inch Network DAO Community Call #02.

Given that this is a new pool type and requires effort from 1inch Labs, Balancer seeks to fund this integration via a payment of 20,000 BAL to 1inch Labs.

Specification

At a high level, integration of Balancer Boosted Pools would require support for Balancer’s BatchSwap function, the routing of trades through multiple Balancer pools including linear pools nested in the boosted pool and the math in the linear pools. This proposal hopes that the support for Boosted Pools is general and can later be expanded to new future Boosted Pools. The integration of Balancer’s BatchSwap function within the 1inch Network will also be able to be used for pools other than Boosted Pools which would benefit both the 1inch Network and Balancer as it would allow for cheaper execution of trades from the wider Balancer pool types. In the near future we expect to see meta pools created with the BPT of Boosted Pools, an example would be a bbaUSD/WETH pool. Routing trades through such pools would include one or more extra hop through Balancer’s BatchSwap function.

We expect that there will be many new Boosted Pools across all networks in near future, namely poos in collaboration with Ampleforth and Olympus although, below is a non-exhaustive list of currently live Boosted Pools on Ethereum L1:

  1. bbaUSD, containing 300mm of DAI/USDC/USDT TVL
  2. bbfUSD, expected to contain at least 50mm of FEI/LUSD/DAI

This is contingent on the same proposal passing through the BalancerDAO.

Upon satisfactory integration Note1, 20,000 BAL shall be sent to 1inch Labs ETH address:

0x2DF104682A61241C79eBB3ce3b2C293578bF6A9D.

Note 1: Satisfactory integration is defined as the 1inch Aggregation Protocol accurately forwarding trades through the bbaUSD and the bbfUSD pools, on Ethereum main-net, when those pools offer the optimal pricing for the end-user.

Rationale

Support for the mentioned pools will unlock $350mm of efficient TVL for the 1inch Aggregation Protocol and allow it to have access to cheap liquidity for trade routing at the moment of integration and much more TVL in the future as Boosted Pool continue their adoption. Additionally, Boosted Pools have been adapted by BeethovenX, Balancer’s Friendly Fork on Fantom and, integrating them would provide a good source for volume to 1inch on Fantom as well.

Balancer Boosted Pools are in much demand from other DeFi protocols due to their innovation in capital efficiency thus, it is expected to see many more Balancer Boosted Pools with high TVL in collaboration with other DAOs, some of which were mentioned in the discussion on the forum. Supporting Boosted Pools will position the 1inch aggregator to be able to rapidly integrate any new Boosted Pools launched.

This BAL grant would be used by 1inch Labs to fund the development of this integration.

Considerations

The technical specifics of this integration will be defined by 1inch Labs. Like all new modules they have launched, a complete internal security review and audit should be performed before this change is implemented on main-net.

Because Balancer DAO is directly funding this integration, other upgrades to the 1inch Network can be made in parallel.

7 Likes

@mosayeri – Awesome, thanks for formalizing proposal and pushing the discussion forward!

Everyone else – this is currently the phase-2 1IP formalization post. Please post any questions and concerns here so the author can address them before the temperature check vote starts.


For more information on the proposal lifecycle refer to the 1inch doc site:

2 Likes

I wonder if this Integration can also route income for Treasury revenue generation at the same time as Balancer fork is giving 8% ApY on these stable pools .

How did you guys reached those numbers ? I think Funds should be increased further to accomodate things because 1inch take Audits very seriously that costs huge Sum .

As a user I wanted to see how efficient & beneficial these pools will be to already efficient 1inch routing ? How this capital efficiency is better than other stablecoin pools like bancor or curve

3 Likes

I like this idea a lot (I remember we discussed it briefly in the phase-1 post). With that said, I think this proposal is best if we narrow it to one major idea, so, treasury investment should be a standalone proposal.

How did you guys reached those numbers ? I think Funds should be increased further to accomodate things because 1inch take Audits very seriously that costs huge Sum .

The 1inch Labs Core Contributors have confirmed that this amount is enough to fund a secure integration.

2 Likes

Thanks for the questions Roxan! The proposal aims to add support for Boosted Pools as a pool type. The two pools mentioned above are the examples that are currently live – although there’s significant TVL in those pools at this moment, the integration would allow 1inch to remain connected new liquidity that will be in newly deployed Boosted Pools.

2 Likes

Thank you everyone!

Moving the proposal to Phase-3 and starting a 5 day temperature check period.

3 Likes

Thanks @mosayeri! Looks great, I’m excited for this integration!


Full disclosure: I edited the post so that the poll automatically closes after 5 days, and also limit poll voters to people with at least trust-level 1 (we added this rule recently).

1 Like

Good Luck !
Hope this don’t get rigged by VC voting address on snapshot like what happened in Compound

1 Like

Hey, Kia. Great to see you.

What is very key to include in the specification is the ability for the user to buy and unwrap the static token from within the linear pools constituting the boosted pools, i.e. get e.g. the aUSDC and USDC instead of just USDC. This would make the boosted pools not just better for trading, but would constitute a real alternative to depositing on AAVE

1 Like

We should try to keep the scope of proposals as narrow as possible. In this case, the proposal is limited to the integration of Balancer Boosted Pools into the 1inch Aggregation Protocol.


With that said, your suggestion sounds very interesting. We should revive the idea after 1IP-07 is implemented.

1 Like

So it then never happens:) and btw, my proposal is quite trivial to implement as boosted pools now support erc 4626. I think you are missing on major value of the boosted pools unless you include that in the scope

1 Like

Temperature-check vote was a success. 12 votes in favor, 0 votes against.


1IP-07 Phase-4 snapshot vote is now live!

Please hop over there and give this proposal a vote!

1 Like

That’s a great point! I think it might’ve been hard to add to the proposal last minute but there could still be the chance of adding the feature in future since slight addition and not a major over-haul.
This would indeed allow users to deposit into Aave by simply doing a swap which is really handy to have an an API (or UI). I think it might actually be cheaper to do this than actually depositing in Aave. The one caveat is that the aTokens in Balancer are wrapped, so it’d be waUSDC – it’d functionally be the same tho.

2 Likes

Amazing to see this move to Snapshot! Thank you all!

5 Likes

[1IP-07] Integrate Balancer Boosted Pools in the 1inch Aggregation Protocol has officially passed!

Final results were 10.68M votes in favor of the proposal, and 0 votes against the proposal.


I will update this thread once the pools have been integrated into the 1inch Aggregation Protocol.

3 Likes